Answer:
January 1, 2020
Bonds Payable 1600000 Dr
Loss on Redemption of bonds 36800 Cr
Discount on Bonds Payable 4800 Cr
Cash 1632000 Cr
Explanation:
The redemption of bonds before the maturity usually requires a payment for redemption which is a certain percentage of its face value. It is usually higher than the face value. The above bonds are redeemed at 102 which means at 102% of the face value of the bonds. Thus, the cash paid to redeem the bonds is,
Cash = 1600000 * 102% = 1632000
The bonds have a carrying value, which is the face value less discount or add premium, of,
Carrying value = 1600000 - 4800 = $1595200
If they are redeemed for an amount in excess of the carrying value, they are redeemed at a loss.
The loss on redemption is,
Loss = 1595200 - 1632000 = $36800
Answer:
The correct answer is Generalizability.
Explanation:
The generalizability theory (theory G) allows to measure the reliability of a test by quantifying the importance of each of its sources of variability. The error is redefined, as a condition or facet of measurement, using the generalizability coefficient as a measure to estimate reliability. This approach does not contradict the fundamental approaches of the classical theory of tests, but can be seen as an extension of it.
<span>A higher interest rate and/or a higher balance will result in higher interest earned.</span>
