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Lana71 [14]
3 years ago
13

Basil Corporation issues for cash $1,000,000 of 8%, 10-year bonds, interest payable annually, at a time when themarket rate of i

nterest is 7%. The straight-line method is adopted for the amortization of bond discount orpremium. Which of the following statements is true?
a.The carrying amount increases from its amount at issuance date to $1,000,000 at maturity.
b.The carrying amount decreases from its amount at issuance date to $1,000,000 at maturity.
c.The amount of annual interest paid to bondholders increases over the 10-year life of the bonds.
d.The amount of annual interest expense decreases as the bonds approach maturity.
Business
1 answer:
Dmitrij [34]3 years ago
6 0

Answer:

b.The carrying amount decreases from its amount at issuance date to $1,000,000 at maturity.

Explanation:

as the market rate was lower than the bond rate, their market price will be higher than face value and so, a bond premium will arise.

The bond premium increase the carrying value of the bonds and will be amortizate over the life of the bonds.

so we have:

1,000,000 + premium = carrying value

over the course fo the years, the premium will decrease therefore, so the carring value. In the end (maturity), the premium will be zero and carring valeu will equal the face value.

It will make statement b correct.

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Ber [7]

Answer: True

Explanation:

This statement is true. Dan Pink argued that when it came to creative businesses, it would be best to use intrinsic as opposed to extrinsic rewards to encourage employees as extrinsic rewards such as money could constrain creativity.

Intrinsic rewards are those that are psychologically rewarding such as giving employees tasks that are fulfilling and make them feel part of the team as well as positive feedback from employers.

8 0
2 years ago
Asset sales, Usage fees, Brokerage frees, and advertising are all ___?
lapo4ka [179]

Answer:

sources of business revenue

Explanation:

Revenue is the money a business gets from its normal trading activities.  It is the income a business obtains through the sales of goods and services to customers. Revenue includes discounts received and purchase returns.

The sale of an asset is revenue to a business because it will receive money from the transaction. Usage fees, Brokerage fees, and advertising are money that businesses receive for offering services.

7 0
3 years ago
When the store hires two workers, they are able to serve 16 customers per hour. When the store hires three workers they are able
kotegsom [21]

Answer: $24

Explanation:

Given that,

Two workers serve = 16 customers per hour

Three workers serve = 22 customers per hour

Each customer spends an average of $4 in the store.

Total revenue from Two workers = 16 × $4

                                                       = $64

Total revenue from Three workers = 22 × $4

                                                          = $88

Therefore, the marginal benefit of hiring the third worker would be:

=  Total revenue from Three workers - Total revenue from Two workers

= $88 - $64

= $24

7 0
3 years ago
Both parties to a valid and enforceable contract must provide consideration. In a contract for the sale and purchase of real est
Wittaler [7]

Answer:

The correct answer is C

Explanation:

The seller consideration is the consideration which is defined as to take the property off the place as well as the market it into the escrow.

For example, if the buyer wants to bought the house, then the buyer will provide an earnest amount of money deposit (it will be the consideration of the buyer), and the seller would agree to sell the home to the buyer (it is the seller consideration).

So, in the agreement of sale and the purchase of the real estate, the seller consideration is to give the property to the buyer.

3 0
3 years ago
A student organization is developing promotions for its clothing fundraiser. Email blasts across campus will be part of the camp
Masja [62]

Answer: Logistic regression

Explanation:

The type of model that the student group can utilize to analyze which features are important for explaining whether someone opens a promotional email is the logistic regression.

Logistic regression is the regression analysis that's used to conduct in a case whereby the dependent variable is binary.

With regards to the question, the logistic regression can provide the best model which will be used to forecast the most important features for the opening of the promotional e-mail.

8 0
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