As a seller we would receive $1,041.25
<u>Solution:</u>
You may receive the bid price of the dealer, of $1,000, or $1,041.25
Prices of treasury bonds are expressed as par value amounts.
The quote price of 104:25 means that the bond is priced at of the par value.
Therefore, if the debt is $1,000, the dollar values to be charged by the borrower should be
Answer:
"$224,000" is the correct solution.
Explanation:
The given values are:
Corporation purchased percentage,
= 25%
Original investment,
= $210,000
Short's net income,
= $80,000
Paid cash dividend,
= $24,000
Now,
The share of net income will be:
=
=
= ($)
The cash dividend will be:
=
=
= ($)
hence,
On December 31, 2021, the balance will be:
=
=
=
= ($)