Answer:
The correct option is A,5.72 times
Explanation:
The number of times that interest charges gives a sense of how financial stable is in its ability to pay interest on bonds as at when due.It is key consideration for prospective bondholders when assessing whether to buy bonds in a particular company
Number of times interest charges earned=net income before interest/interest
net income before interest charges=net income+interest charges
net income is $340,000
interest charges=$1,200,000*6%=$72,000
net income before interest charges=$340,000+$72,000=$412,000
number of times interest was earned=$412,000/$72,000=5.72
Answer:
$0
Explanation:
As we know that the life insurance proceeds would be recieved by the beneficary on the insured person death is tax free
Since the amount of $12,000 would be received by May Green on her insured father so this amount would be tax free
Therefore the amount that subjected to income tax is $0
Answer:
$220 billion
Explanation:
GNP is $200 billion
Factor income from the rest of the world is $10 billion
Factor income to the rest of the world is $30 billion
Therefore the GDP can be calculated as follows
= $200 billion + (30 billion- 10billion)
= $200 billion + 20 billion
= $220 billion
Hence the GDP is $220 billion
Answer:
Usually the nonprofit organization should report the value of the donated asset as the difference between the price when donated minus depreciation: $60,000 - $6,000 = $54,000.
But nonprofit organization can choose to recognize only a part of the donation each year as long as they use the asset. This recognized part is usually equivalent to the depreciation cost, so the value of the asset at the end of the year will always be 0. They do this to show smaller balances in order to try to attract more donations. It is always harder for wealthy nonprofit organizations to get more donations, so be having 0 assets donated, they pretend to be "poorer".
Answer:
a. 5.00%
b. 4.50%
c. 4.00%
d. 3.50%
Explanation:
The after tax yield is determined by the formula given below;
Equivalent Taxable Yield = r * (1 - t)
a. when t = 0 then 5% * (1 - 0)
= 5.00%
When t=0, the after tax yield for taxable bond is same as before tax yield and is greater than municipal bond.
b. when t = 10% then 5% * (1 - 10%)
= 4.50%
c. when t = 20% then 5% * (1 - 20%)
= 4.00%
d. when t = 30% then 5% * (1 - 30%)
= 3.50%
