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Ksju [112]
3 years ago
5

A corporation issues $100,000, 8%, 5-year bonds on January 1, 2007, for $104,200. Interest is paid annually on January 1. If the

corporation uses the straight-line method of amortization of bond discount, the amount of bond interest expense to be recognized in December 31, 2007's adjusting entry is
a. $7,160.
b. $8,000.
c. $8,840.
d. $840.
Business
2 answers:
azamat3 years ago
8 0

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zlopas [31]3 years ago
7 0

Answer:

Option (a) is correct.

Explanation:

Yearly amortization of the bond discount:

= (Amount of bonds issued - Issued for)

= (100,000 - $104,200) ÷ 5

= -$840

Adding this to the cash payment of interest:

= $100,000 × 8%

= $8,000

We get,

= Interest payment + Yearly amortization of the bond premium

= $8,000 + (-$840)

= $7,160

It is the amount of bond interest expense to be recognized in December 31, 2007.

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An option trader buys 1 ABC April 25 put. A few months later, the trader exercises the option. The trader's net sales proceeds e
Lina20 [59]

Answer:

[C] Strike price minus the premium

Explanation:

A put buyer refers to the one who purchases a right (and not the obligation) to sell(put) the underlying asset at a pre determined strike price/exercise price at a future date.

A put buyer is under no obligation to exercise his right of selling the underlying asset. He will exercise his right only when his strike price is greater than the current market price upon expiry of the contract.

Put Buyer's profit is expressed as;

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Thus, his NET sales proceeds are equal to his Strike Price as reduced by Option premium paid.

6 0
3 years ago
The bank forecloses on Lisa's apartment complex. The property had been pledged as security on a nonrecourse mortgage, whose prin
skelet666 [1.2K]

Answer: $400,000

Explanation:

Based on the information given in the question, Lisa's recognized gain or loss will be calculated as the difference between the amount that's realized and the adjusted basis. This will be:

Recognized gain will be:

= Amount realized - Adjusted basis

= $900,000 - $500,000

= $400,000

There's a recognized gain of $400,000

6 0
3 years ago
In its consolidated cash flow statement for the year ended December 31, 20X2, Plant Corporation reported operating cash inflows
Alex787 [66]

Answer:

to and n = 23 for the 95% confidence interval for the mean

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8 0
3 years ago
What a example of a social news site
scoundrel [369]

Explanation:

  • It encourages people community to post their news
  • The news can be posted for a group or to a general public too
  • The group or the general public can comment on the news
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6 0
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two (2) years of the most recent date of alleged discriminatory action.

What is HUD ?

The United States government's Department of Housing and Urban Development (HUD) was established in 1965 as a part of then-President Lyndon Johnson's Great Society program to broaden the nation's welfare state. Its main goal is to increase chances for affordable homeownership in order to strengthen the inner-city housing market and homeownership.

The goals of HUD's programs are to expand safe and inexpensive rental options, decrease chronic homelessness, combat housing discrimination by providing equitable access to the rental and purchase markets, and assist disadvantaged groups.

The U.S. government's Department of Housing and Urban Development (HUD) promotes neighborhood growth and house ownership.

Based on sex, race, color, national origin, religion, family status, and disabilities, the Fair Housing Act outlaws discrimination in housing.

Learn more about HUD with the help of given link:-

brainly.com/question/10405416

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8 0
2 years ago
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