Answer:
c. $7,500 ordinary gain
Explanation:
Depreciated value of Machine = $55,000 - $12,500
= $ 42,500
Sale price of Machine = $ 50,000
Gain on sale of Asset = $ 50,000 - $ 42,500
= $ 7,500
Therefore, The amount and character of Butte's gain or loss is $7,500 ordinary gain.
Answer:
$23,709
Explanation:
Data provided in the question:
Amount of bond issued = $700,000
Duration = 5 years
Interest rate = 8%
Selling amount of bond = $728,700
Market rate of interest = 7%
Now,
Interest paid = Amount of bond issued × Interest rate
= $700,000 × 0.08
= $56,000
Interest expense = Amount of bond sold × Market Interest rate
= $728,700 × 0.07
= $51,009
unamortized premium = Selling amount of bond - Amount of bond issued
= $728,700 - $700,000
= $28,700
Amortized amount = Interest paid - Interest expense
= $56,000 - $50,009
= $4,991
Balance of the premiums on bonds payable account immediately following the first interest payment
= unamortized premium - Amortized amount
= $28,700 - $4,991
= $23,709
Answer:
The expected rate of return is 8.65%
Explanation:
The expected return on a stock can be calculated by multiplying the return in each scenario by the probability of that scenario. This will provide the expected value of the return based on all these scenarios. Thus, the rate of return is,
Rate of return = rA * pA + rB * pB + rC * pC
Where,
- r represents the return in each scenario
- p represents the probability of each scenario
The probability of normal state is = 1 - 0.45 - 0.05 = 0.5
Rate of return = 0.13 * 0.45 + 0.06 * 0.5 + (-0.04) * 0.05
Rate of return = 0.0865 or 8.65%
Answer:
The Marketing Concept
Explanation:
Marketing concept is a marketing style in which the realization of the organization goals is directly related to knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors.
The organization utilizes market data to develop a strategy that is able to maintain a balance between satisfying the customer's need and achieving its own goals.