<span>Monetary Policies in the United States are regulated by the Federal Open Market Committee (FOMC) which is a sister arm of the Federal Reserve Board and it says which direction the financial bearings and adjustment of the united state financial conditions sway towards A vote to transform the financial outcome of United States by this FOMC through it's monetary policies can either purchasing or offering US government securities in the open market to build up the advancement of the country.</span>
Answer:
The journal entry is as follows:
Cash A/c Dr. $2,020,000
Discount on bonds payable A/c Dr. $59,216
To Bonds payable $2,000,000
To Paid in capital - stock warrants $79,216
(To record the issuance of the bonds and warrants)
Workings:
Cash:
= 2,000 × $1,000 × 101%
= $2,020,000
Discount on bonds payable:
= 2,000,000 - 2,020,000 × (980 ÷ 1,020)
= $59,216
Answer:
D) 4.95 percent
Explanation:
The current yield formula can be used to determine the coupon payment which would thereafter be used to compute coupon rate as required:
current yield=coupon payment/current market price
current yield=4.87%
coupon payment=unknown
current market price=101.6533%*$10,000
current market price=$10,165.33
4.87%=coupon payment/$10,165.33
coupon payment=$10,165.33 *4.87%
coupon payment=$495.051571
coupon rate=coupon payment/face value
coupon rate=$495.051571
/$10,000
coupon rate=4.95%
Answer and Explanation:
a. The computation is shown below;
Cash bonus after tax is ($3,000 × (1 - 0.24) $2,280
And, non taxable fringe benefit is $2,300
So here he should use the nontaxable fringe benefit
b. Yes answer would be changed
Cash bonus after tax is ($3,000 × (1 - 0.12) $2,640
And, non taxable fringe benefit is $2,300
hence, the same is to be considered
The economist's analysis in the scenario painted above incorporates the idea of OPPORTUNITY COST.
Opportunity cost refers to a value or a benefit which must be given up in order to enjoy or acquire another benefit. Because resources are scarce, one always has to make decision about how to use one's resources efficiently. In the scenario given above, Joe had the opportunity to put his money in a fixed deposit account or to use it to buy gold coins; he choose the latter given up the former. Thus, the former, which he gave up is his opportunity cost.<span />
