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gtnhenbr [62]
3 years ago
15

An individual purchased a taxable corporate bond at a premium. The bond has a remaining ten year maturity period. For federal in

come tax purposes, amortization of the premium:________
Business
1 answer:
EleoNora [17]3 years ago
6 0

Available Options Are:

A. Increases investment interest expense

B. Is required

C. Reduces interest income

D. Increases interest income

E. Increases the basis of the bond

Answer:

Option C. Reduces Interest Income

Explanation:

The reason is that when we amortize the premium the carrying value of the bond decreases which decreases the principal amount and thus the interest calculated will also be decreased. The decrease in principal amount is because of the difference between the coupon rate of the bond and the firm's required rate of return.

Hence the amortization of the premium reduces the interest income.

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Patents are an example of which of the following?
Kitty [74]

Answer: Option (B) is correct.

Explanation:

Correct option:  limited-life intangible assets.

Patents are considered as a intangible assets. Patents are the intellectual property that a owner can use to exclude others from making, selling and coping technology but for a limited number of years.

In most of the nations patent rights fall under the civil law and if a person wants to take benefit of their patent right then he have to sue someone for infringing the patent to enforce his right.

6 0
3 years ago
Marginal utility is the: select one:
garri49 [273]

Marginal utility is the <u>"change in total utility obtained by consuming one more unit of a good".</u>

Marginal utility evaluates the additional satisfaction a customer earns from consuming extra units of products or services. The idea of marginal utility is utilized by economists to decide the amount of a thing buyers are happy to buy. Positive peripheral utility happens when the utilization of an extra thing builds the total utility, while negative marginal utility occurs when the utilization of an extra thing diminishes the total utility.  

3 0
3 years ago
Below are several names of companies and their founders. Explain whether the business creates and sells innovative products or u
Kruka [31]

Answer:

my Answer is a products is notikdd

8 0
3 years ago
Schumpeterian growth focuses on:______. a. capital formation (i.e., more physical capital) as central to economic growth.b. argu
timurjin [86]

Answer:

Option D The role of technological innovation and entrepreneurs as central to economic growth.

Explanation:

The reason is that these generate value of the country's product due to its uniqueness and preferable services provision which means that the exports of the product will grow and the domestic sales will also grow if the product is innovative. Innovations brings the demand because nowadays the fight is not on the borders the fight among countries is generating heavy amount of reserves through increase in exports. And this growth in economy is only possible if the country's products are produced efficiently on the international market which is only possible if the innovation has decreased the cost of producing the products or the products produced are efficient.

3 0
3 years ago
What does this mean help
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