Answer : C: with increases in technology, the aggregate production function shifts up, indicating more output is produced from the same amount of inputs.
Reason: With increase in technology, the same process which requires manpower can be automated and this automation increases the production efficiency which shifts up the production function from the same number of inputs
Answer:
17%
Explanation:
Purchase price of bond = $921.77
Years investment held = n = 7
Coupon rate = C = 15%
Frequency of payment = m = 2
Annual coupon = $1,000 × (0.15/2) = $75.00
Realized Yield = i
Selling price of bond = PB = $961.22
The realized rate of return is approximately 16.6 percent. Using a financial calculator provided an exact yield of 16.625 percent.
Answer:
7.32%
Explanation:
<em>The price of a bond is the present of its interest payment and the present value of redemption value (RV</em>
Present value of the Redemption Value (RV) =
FV× (1+r/2)^(-2×n)
FV- 2000, r- yield rate, r/2= 6.74%/2 = 3.37%, n-22
=2000× (1.0337)^(-2×22)
= 465.233
Present Value of the coupon payment =Price of bond - PV of RV
= (106.657% × 2000) - 465.233
= $1667.90
PV of coupon payment= A × (1-(1+r)^(-2×n)
A- semiannual coupon payment, r -yield
1667.90 = A × (1-(1.0337)^(-2*22))/0.0337
1,667.90 = A × 22.7710
A = 1,667.90/22.7710
A= 73.246
Annual coupon payment = 2× 73.246= 146.493
Annual coupon rate = coupon payment/ face value
= (146.493/2,000 )× 100
= 7.32%
Answer:
investment on Kingbird Enterprises 650,000 debit
Goodwill 40,000 debit
cash 690,000 credit
Explanation:
We are going to recognize a goodwill between the value of the firm at fair value and the acquisition cost:
acquisition cost: 690,000
market value:
assets 880,000 - liabilities of 230,000 =<u> (650,000)</u>
goodwill: 40,000
We enter the investment at the fair value of the net assets(assets - liabilities) as this is the value they got. Kingbird will recognize a gain in their books for the sale of theses assets above their book value. But; to us, the value of the assets is 880,000 not 570,000
Answer:
full costing
Explanation:
Total costing often recognized as absorption costing is utilized to assess A commodity's complete and total expense. The method is most widely used to document in the financial reports the full amount of the product.
This form of costing becomes necessary under many accounting structures for internal controls like Generally Accepted Accounting Principles as well as International Financial Reporting Standards and income tax reporting.
The basic principle underlying complete costing is to allocate all variable costs to something like a cost item and also overhead cost assignment. A cost subject is something that gathers cost information, such as with a consumer, inventory, facility, shop, geographical region, product line, etc.