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otez555 [7]
3 years ago
13

Consolidated Enterprises issues $1 million face value, five-year bonds with a coupon rate of 6.0 percent. At the time of issuanc

e, the market interest rate is 5.0 percent. Using the effective interest rate method of amortization, the carrying value after one year will be closest to:
Business
1 answer:
valentinak56 [21]3 years ago
8 0

Answer:

$1,035,459.51

Explanation:

First we must determine the issuing value:

  • cash flow 1 = $60,000
  • cash flow 1 = $60,000
  • cash flow 1 = $60,000
  • cash flow 1 = $60,000
  • cash flow 1 = $1,060,000

using an excel spreadsheet to calculate the bond's price with a discount value of 5%:

the bonds were sold at $1,043,294.77

the effective interest expense = bond's price x market interest = $1,043,294.77  x 5% = $52,164.74

bond's value = bond's price - (coupon payment - effective interest) = $1,043,294.77 - ($60,000 - $52,164.74) = $1,035,459.51

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Robot Corporation is liquidated, with Marty receiving property having an adjusted basis of $60,000 and an FMV of $90,000. The pr
mr_godi [17]

Answer:

-$40,000

Explanation:

Data provided as the question

FMV = $90,000

Assumed Liability = $80,000

Stock basis = $50,000

The computation of recognize is shown below:-

= FMV of property - Assumed Liability - Stock basis

= $90,000 - $80,000 - $50,000

Recognize Loss = -$40,000

Therefore for computing the recognize loss we simply deduct the assumed liability and stock basis from FMV of property.

6 0
3 years ago
What population problem is India facing, and what are the consequences of this situation?<br>​
dusya [7]

Answer:

over population and the consequences are limited space, global warming, and more poor people

7 0
3 years ago
The primary difference between a change in supply and a change in the quantity supplied is: Select an answer and submit. For key
kipiarov [429]

Answer:

D

Explanation:

A change in quantity supplied is as a result of a change in the price of the good. This change in the price leads to a movement along the supply curve. If price increases, there is an upward movement up along the supply curve and if there is a decrease in price, there is a movement down the demand curve.

A change in supply is caused by other factors other than price. Some of these factors include :

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  • The cost in the price of raw materials needed in the production of the good.

A change in supply leads to a movement outward or inward

3 0
3 years ago
Who would be called upon to fix the following problem? The network at the U.S. embassy in Brazil has suddenly crashed.
svp [43]

An information management specialist would be the one to fix an issue with a network.

3 0
3 years ago
Niels owned three adjoining parcels of land in Arizona. Hannah wanted to buy one. Over dinner, the two sketched and signed this
mart [117]

Answer:

Hannah will lose her suit.

Explanation:

Niels and Hannah did not have a binding deal. They did not decide on a specific lot of land or on a price. It is never even decided how the two of them will decide on a fair method of agreeing on the price. Don't be fooled by words like binding contract. The terms are too vague and therefore Hannah will ultimately lose the case.

7 0
4 years ago
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