Answer: The following statements is correct: <em><u>Bond covenants are designed to protect bondholders and to reduce potential conflicts between stockholders and bondholders.</u></em>
Bond covenants are considered to be part of the judicial bindings that forms up a bond, irrespective of the fact whether it is issued by a institution or the authorities. They are normally supposed to defend capitalist by rendering some certainty on the bond.
I think it is d for this question
Answer:
Accumulated Depreciation at the end of year = $16,000
Explanation:
<em>Under the straight line method of depreciation, the cost of an asset less the salvage value is spread equally over the expected useful life.</em>
<em>An equal amount is charged as annual depreciation over the life of the asset. The annual depreciation is calculated as follows:</em>
Annual depreciation:
= (cost of assets - salvage value)/ Estimated useful life
Cost - 100,000
Residual value = 20,000
Estimated useful life = 10 years
Annual depreciation = (100,000- 20,000)/10 =8,000
Annual depreciation = 8,000
Accumulated Depreciation for 2 years = Annual depreciation× number of years
= 8,000× 2 = 16,000
Accumulated Depreciation for 2 years = $16,000
Answer:
B. Persons on fixed incomes.
Explanation:
Inflation is a general increase in prices and fall in the purchasing value of money, therefore, a person with a fixed income will not be affected.
