I would say $10,150. The 10,000 principal x 1.09 = 10,900 but this would be for 9% for one year whereas the term is 60 days or approx. 2 months or 1/6 of a year so the increase would be 900/6 = 150 so the total value would be $10,150.
Answer:
$7,600
Explanation:
The computation of cash paid on July 1 to the bondholders is shown below:-
cash paid on July 1 to the bondholders = Par Value × Semi annual coupon rate
= $190,000 × 6 months ÷ 12 months × 8%
= $190,000 × 0.5 × 0.08
= $7,600
We considered the 6 months as semi-annually is mentioned in the question
Therefore for computing the cash paid on July 1 to the bondholders we simply applied the above formula.
Answer:
8050
Explanation:
he amount of income before taxes under the LIFO assumption would be:
8050 calculated as follows:
Income tax under FIFO: 7000*.30 = 2100
Income Tax under LIFO = 2100 + 315= 2415
Income before taxes under LIFO = 2415/.30 = 8050