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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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My nickname - Lovely

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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anyanavicka [17]

Answer:

D. All of the statements are correct.

Explanation:

The Seller requires to

Reduce its sales by the estimated return value and cost of goods sold by the estimated cost value of the units expected to return in the future.

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After the estimation of values record the adjusting transaction for the estimated return liability and the inventory to be returna as well.

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2 years ago
Monopoly has social costs because A. P is greater than MC and this implies economic inefficiency. B. too few resources are being
elena55 [62]

Answer:

Option "D" is the correct answer to the following question.

Explanation:

A monopoly usually has all kinds of social costs. Price under monopoly is more than marginal cost, which also often means that society does not have the economic capacity.

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Monopoly businesses produce fewer goods but charge more on those goods because they are the sole producers of the services or goods they produce, so all three options are correct

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3 years ago
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sladkih [1.3K]

Answer:

D. Flex plan ticket books

Explanation:

The selling in which you describe it in such a way that the product is tied in such a way that it improves the customers situation. 

e.g All are servers are manufactured in the city so you can be sure of immediate support if any issue arises.

Selling the benefits instead of a features make it easier to get higher prices, it makes the product differentiation easier and justifies the higher price being charged.

The flex tickets are an example of benefit selling because one can purchase it in any combination possible for the type of package purchased and it can be used in any chosen combination throughout the current season.

3 0
3 years ago
Which of the following statements is true?
netineya [11]

Answer:

d. The present value of perpetuity varies directly with the annual repayments.

Explanation:

A perpetuity is a security or bond which pays a fixed amount of cash flow at a fixed interval forever. So the amount it pays stays the same and it keeps paying for ever. The formula to find the present value of a perpetuity is

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100/0.05=2,000

If we keep the interest rate the same at 5% and increase the cash flow by 100 to 200 the new present value of the perpetuity is

200/0.05=4,000

This proves that the present value of a perpetuity varies directly with the annual repayments or cash flow of perpetuity.

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3 years ago
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Hoochie [10]

Answer:

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Explanation:

7 0
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