1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
meriva
3 years ago
5

On January 1, Year 1, the Diamond Association issued bonds with a face value of $300,000, a stated rate of interest of 6 percent

, and a 10-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 7 percent at the time the bonds were issued. The bonds sold for $278,932. Diamond used the effective interest rate method to amortize the bond discount. Required a. Determine the amount of the discount on the day of issue. b. Determine the amount of interest expense recognized on December 31, Year 1. (Round your answer to the nearest dollar amount.) c. Determine the carrying value of the bond liability on December 31, Year 1.
Business
1 answer:
lara31 [8.8K]3 years ago
6 0

Answer:

A) $21,068

B) $1,525.24

C) $280,457.24

Explanation:

The amount of the discount = face value - market value = $300,000  - $278,932 = $21,068

Amount of interest recognized on December 31, year 1 = ($278,932 x 7%) - ($300,000 x 6%) = $19,525.24 - $18,000 = $1,525.24

Carrying value of the bond liability = $278,932 + $1,525.24 = $280,457.24

You might be interested in
Instruck inc. is a real estate firm based in colorado. the company ensures that employees' pay is dependent on what they are cap
Kruka [31]
Based on the above scenario, the pay structure being exemplified Skill-based pay systems. Skill-based pay systems are pay structures that set pay as indicated by the workers' level of expertise or learning and what they can do. Paying For abilities bodes well at associations where changing innovation expects workers to constantly broaden and extend their insight.
6 0
4 years ago
As the price level falls a. people will want to hold more money, so the interest rate rises. b. people will want to hold more mo
icang [17]

Answer:

The answer is C.

Explanation:

As the general price level decreases or falls, people will want to hold less money, so the interest rate falls.

As price level falls, value of money decreases because a unit of money will more of goods or services.

During this period people will want to hold less money because of the decrease in value and the excess money will be deposited in banks.

With this, the banks have more money to lend out and this will make the bank to reduce its Interest rate.

8 0
3 years ago
Marginal cost is equal to average total cost when a. average variable cost is falling. b. marginal cost is at its minimum. c. av
atroni [7]

Answer: C

Explanation: average total cost is at its minimum

3 0
2 years ago
A manager needs to have summary sales information by product line available to her on a timely basis when purchasing decisions n
juin [17]

Answer:

Management information

Explanation:

From the question we are informed about instance, whereby A manager needs to have summary sales information by product line available to her on a timely basis when purchasing decisions need to be made. In this case, The type of information system most likely to provide this type of information would be classified as a Management information. Management information system can be regarded as a an information system that is been used in decision-making as well as in the coordination, control and analysis or visualization of information in an organization.

Studing of management information systems encompass the people as well as the processes and technology as regards an organizational context.

3 0
3 years ago
Potatoes and wheat output (tons per day)
Alchen [17]

Answer:

c. potatoes

Explanation:

The computation is shown below:

Opportunity cost of producing 1 tons of wheat is  

for US = 4 ÷ 3 = 1.33 tons of potatoes

for Ireland = 2 ÷ 1 = 2 tons of potatoes

As the opportunity cost is higher in united states of potatoes so here the united stated should be comparative advantage in generating potatoes  

3 0
3 years ago
Other questions:
  • Suppose you find that prices of stocks before large dividend increases show on average consistently positive abnormal returns. i
    15·1 answer
  • Most of the stock price response to a corporate earnings or dividend announcement occurs within ________________.A. about 30 sec
    11·1 answer
  • Westerville Company reported the following results from last year’s operations: Sales $ 1,000,000 Variable expenses 300,000 Cont
    13·1 answer
  • Assume that ABCO is a U.S. multinational corporation. Its foreign subsidiaries must report income in their respective countries
    12·1 answer
  • Mcmurtry Corporation sells a product for $160 per unit. The product's current sales are 12,700 units and its break-even sales ar
    15·1 answer
  • Economists say that individuals make decisions at the margin. What does its menas?
    7·1 answer
  • Francine wants to become a school counselor. Which is the academic requirement for this career?
    15·2 answers
  • A company set up a petty cash fund with $800. The disbursements are as follows:
    9·1 answer
  • Net initial investment includes ________. Group of answer choices cash outflow to purchase new equipment, depreciation on new eq
    5·1 answer
  • How do job seekers use the bureau of labor statistics occupational outlook handbook
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!