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Tanzania [10]
3 years ago
7

At the beginning of his current tax year, Eric bought a corporate bond with a maturity value of $26,000 from the secondary marke

t for $20,600. The bond has a stated annual interest rate of 6 percent payable on June 30 and December 31, and it matures in five years on December 31. Absent any special tax elections, how much interest income will Eric report from the bond this year and in the year the bond matures?
Business
1 answer:
Margaret [11]3 years ago
3 0

Answer: Eric will report an Interest Income of $1560

Explanation:

Interest Rate (r) = 6%

Marturity Value = 26000

Interest income for this year

Interest income (6 months) = 26000 x (0.06/2) = 780

Interest income for this year = 780 x 2 = 1560

Eric will report an interest income of $1560 this year.

Interest Income in the final year (Maturity year)

Bond Interest Payments are constant each year for up until the Bond Matures. Eric will still earn an interest of $ 1560 in the final year

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Answer: Option (b) is correct.

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The answer is: by cheap foreign labor

Currently, most of the corporations that operates in america manufacture their products in countries such as China, india, indonesia, phillipines, or Eastern European countries.

People who live in those countries typically have lower standard of living. Because of this, they can agree in receiving salary that are considerably lower compared to the minimum wage in united states.

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3 years ago
Which system for tax collection supports the idea that some states are worth more than other states?
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which system tax collection system supports the idea that some states are more valuable than others is the Articles of Confederation says that its value will be estimated based on land, people, and improvements

Taxes can be defined as mandatory levies from the people for the state. Every penny of tax money paid by the people will be included in the post of state income from the tax sector. Its use is to finance central and local government spending for the welfare of the community.

Taxes are very beneficial for the state. In full, taxes are widely used for:

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3 0
1 year ago
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What this means is that an organisation using the global standardization strategy will treat the world as largely one market and one source of supply with little local variation.

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