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Umnica [9.8K]
3 years ago
9

On January 1, 2019, a company's balance sheet reports its investments in debt securities as follows: Assets Investment in HTM se

curities: $207,544
Supporting information: The HTM securities are $200,000 face value securities purchased on January 1, 2017, at a yield of 4%. The securities have a 4-year total life and pay interest annually on December 31, at a coupon rate of 6%.

Required:

Investment in HTM securities reported on the December 31, 2019 balance sheet is:
a. $203,846
b. $204,938
c. $207,544
d. $207,997
Business
1 answer:
mario62 [17]3 years ago
5 0

Answer:

correct option is a. $203,846

Explanation:

given data

Assets Investment = $207,544

face value = $200,000

yield = 4%

coupon rate = 6%

to find out

Investment in HTM security report on balance sheet

solution

we get here balance that is express as

balance = Assets Investment + Interest @4 - Interest Paid  .................1

balance = $207,544 + ( $207544 × 4% ) - ( $200000 × 6% )

balance =  $207,544 + $8,302 - $12,000

balance = $203,846

so correct option is a. $203,846

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On September 30 of last year, Rex received some investment land from Holly as a gift. Holly’s adjusted basis was $50,000 and the
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Answer:

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B) 70,000 will generate a long-term capital gain of 20,000

C) gift of 5,000 it will not trigger the gift tax.

Explanation:

When the sale is below market value, it is treated as a gift to the buyer.

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Ben Lieber is a waiter at Harbor House, where he receives a weekly wage of $80 plus tips for a 40-hour workweek. Lieber's weekly
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Answer:

$290

Explanation:

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Fiat money has :
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The common stock of Zeta Group sells for $42 per share, has a rate of return of 12.2 percent, and a dividend growth rate of 1.8
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Answer:

The amount of the last annual dividend paid is <u>$4.3</u>.

Explanation:

Given:

The common stock of Zeta Group sells for $42 per share, has a rate of return of 12.2 percent, and a dividend growth rate of 1.8 percent annually.

Now, to find the amount of last annual dividend paid.

Let the amount of last annual dividend paid be l.

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Rate of return (r) = 12.2\%.

Rate of dividend growth (g) = 1.8\%.

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p=\frac{l(1+g)}{r-g}

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<em>Multiplying both sides by 0.104 we get:</em>

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<em>Dividing both sides by 1.018 we get:</em>

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