Answer:
D. Both bonds will decrease in value but bond B will decrease more than bond A.
Explanation:
A given bond is worth the same amount when it matures, so an increase in interest rates means that it must have a lower current value to grow to the same end value.
Comparably, bond B will grow more than bond A throughout its term, so the initial value decreases by more than bond A to compensate.
Answer: $200,000
Explanation:
The company spent $200,000 on the research that led to the development of the navigation device and according to Accounting guidelines, Research and Development costs are to be expensed in the period that they occurred.
The entire $200,000 that was spent should therefore be expensed as Research and Development.
Answer:
Trell will show an amount receivable from factor equal to 20, 010 dollars.
Explanation:
NON recourse factoring is when a company sells it's invoices to a factor, without the promise that the company will buy back any uncollected invoices. The factor does not take the risk of any uncollected invoices.
So in this factoring arrangement no allowance for bad debt exist
Company Receivable before factoring = $ 58000
Amount received= 58000*60 % = $ 34800
Amount remaining= 58000*40% =$ 23200
Amount Receivable from factor= 23200-(58000*1%)' - (34800/2*15%)''
=20, 010 dollars
'Factor fee
" Interest to be charged by factor on 60% lended
Answer:
The total amount of paid-in capital in excess of par is: $5,000.
Explanation:
When Common Stocks are classified as par value Stocks, any price paid in excess of the par value of the Stock is accounted for in the Share Premium account.
<u>Here is the Summary of the Transaction provided.</u>
Common Stocks : 260 shares × $100 = $26,000
Paid-in capital in excess of par : $31,000 - $26,000 = $5,000
Answer:
C
Explanation:
To estimate the amount of depletion for the current year?
We need to know the rate of depletion which
$100,000,000/2,500,000 = $40/ton
The amount of depletion for the current year will be
$40/ton x 500,000 tons = $20,000,000
