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Inessa [10]
3 years ago
11

Franklin corporation issues $50,000, 10%, five-year bonds on january 1 for $52,100. interest is paid semiannually on january 1 a

nd july 1. if franklin uses the straight-line method of amortization of bond premium, the amount of bond interest expense to be recognized on july 1 is
Business
2 answers:
Harman [31]3 years ago
3 0

Answer:

Amount of interest expenses to be recognized on July 1 =   $50,000 x 10% x 6/12  =  $2,500

Explanation:

slava [35]3 years ago
3 0

Answer:

$2,290

Explanation:

Since Franklin sold their bonds at a premium (higher than face value), they must discount the premium from their interest expense.

total interest expense = coupon paid - amortization of bond premium

  • coupon = $50,000 x 10% x 1/2 = $2,500
  • amortization of bond premium = ($52,100 - $50,000) / 10 periods = $2,100 / 10 = $210

total interest expense = $2,500 - $210 = $2,290

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AysviL [449]

Answer:

car insurance, rent, student loan payments

Explanation:

Fixed expenses or fixed costs remain constant throughout a financial period. In the year under consideration, fixed expenses will have the same figures regardless of the production level.  Fixed costs contrast variable costs, which vary depending on the level of business activities.

From the list provided, car insurance, rent, student loan payments will likely remain the same in the financial period. The other expenses, such as pet needs, entertainment, public transportation costs, and gifts, are bound to be determined by production volumes.

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3 years ago
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3 years ago
The CARES Act allows special treatment for net operating losses incurred in 2018, 2019, and 2020. Which of the following is not
Ulleksa [173]

Answer: d. Taxpayers may claim the carryback using Form 1045 at any time within three years of the due date of the return for the NOL year.

Explanation:

The Coronavirus Aid, Relief, and Economic Security (CARES) Act, was signed into law in the wake of the effects of the Coronavirus pandemic that swept the nation in 2020.

Under this Act, all NOLs may be carried back five years and taxpayrs were allowed to waive their carryback period by attaching a statement to their 2020 return.

The Act however, did not allow for taxpayers to claim their carryback using Form 1045 at any time within three years of the due date of the return for the NOL year as this Act was only passed to cushion the effects of the pandemic in 2020.

3 0
2 years ago
Fred purchases a bond, newly issued by the Big Time Corporation, for $10,000. The bond pays $400 to its holder at the end of the
VashaNatasha [74]

Answer: The correct answer is "B. $10,000; 4%; four years".

Fred purchases a bond, newly issued by the Big Time Corporation, for $10,000. The bond pays $400 to its holder at the end of the first, second, and third years and pays $10,400 upon its maturity at the end of four years. The principal amount of this bond is <u>$10000,</u> the coupon rate is <u>4%,</u> and the term of this bond is <u>four years.</u>

<u></u>

Explanation: The maturity of the bond is at 4 years.

Its future value or face value is 10000.

The coupon rate is equal to \frac{Cupon}{Face value} x 100

So Coupon rate = \frac{400}{10000} x 100 = 4%

4 0
3 years ago
How did the university of florida help address the problem of global warming? how did the university of florida help address the
Ipatiy [6.2K]

Answer:

the athletic program reduced local energy consumption and planted trees.

Explanation:

When you reduce your energy consumption, the generation of greenhouse gases will decrease. Even though a house uses electricity and not wood or coal, many times coal or other fossil fuels are used to produce electricity. By lowering its consumption, less electricity will be produced and less coal and other fossil fuels will be burnt.

By planting more trees, the total amount of carbon dioxide absorbed by them will increase. Trees convert carbon dioxide into oxygen which also helps to clean the air.

3 0
3 years ago
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