Answer:
interest expense for 6 months is $ 20658
Explanation:
Given data:
Total price of bond $400,000
Duration of bonds is 10 year
interest rate on bond is 12%
issue price on bond is $413,153 at 10% market rate
The calculation for interest expense for 6 months is given below:
=
= 20658
The six months is taken from Jan 1 to 30 th June 2016
I believe it would be reasonable or responsible. Leaning towards reasonable
Answer:
the tax rate should be of 45.83% to make indifferent for the investor
Explanation:
the municipal bonds pay no income tax according to United States IRS regulation
Therefore their rate will be the equivalent of the after-tax rate of a corporate bonds
to make it indifferent we should look at the rate that makes the after tax yield of the 12% equal to 6.5%
0.12 x (1-t) = 0.065
1 - 0.065/0.12 = t
t = 0.4583 = 45.83%
the tax rate should be of 45.83 to make indifferent for the investor
Complete Question:
If a company is considering the purchase of a parcel of land that was acquired by the seller for $94,000, is offered for sale at $168,000, is assessed for tax purposes at $104,000, is recognized by the purchaser as easily being worth $158,000, and is purchased for $155,000, the land should be recorded in the purchaser's books at:
Multiple Choice
$155,000.
$104,000.
$158,000.
$156,500.
$168,000.
Answer:
Since the parcel of land is purchased by the company for $155,000, hence the land should be recorded in the purchaser's books at $155,000.
Explanation:
In case of a fixed asset, a debit of the property account, and a credit to cash or payable funds, or a note payable, based on whether it is a cash transaction, debt acquisition or default, are known as a balance sheet asset.
A provision on the register of deeds and other land rights. Also the preference between parties seeking rights in the same property is decided by a recording statute. See the state of the team, state of a note and status of a non-alert (3 key categories of recordings).
Answer:
The selling price per unit is $35
Explanation:
In computing the selling price for each of the expected units produced and sold each year of 14,000 units,the total production cost is added to the administrative expenses as well as the return on investment i.e 12% of $750,000.
Product cost($25*14000) $350,000
selling and administrative expenses $50,000
Total cost $400,000
return on investment(12%*$750,000) $90,000
Total sales value $490,000
selling price per unit=sales value/units sold=$490,000/14000=$35
The established selling price per unit is $35
