Answer:
caring value of bond liability is $48000
interest expense = $3547
annual coupon = 3500
amount of bond discount amortization is $47
Explanation:
given data
face value = $50,000
bonds issue = 96
discount = 4%
time = 20 year
interest = 7%
effective rate of interest = 7.389%
to find out
compound annual coupon
solution
we have given face value and discount 4 %
so issue price will be
issue price = 96% of face value
issue value = 96% × 50000 = $48000
and
interest expense is here by effective interest rate is
interest expense = 7.389% of $48000
interest expense = $3547
and
annual coupon is here
annual coupon is 7% of face value
annual coupon = 7% × 50000
annual coupon = 3500
and
amount of bond discount amortization is 3547 - 3500 = $47
Answer:
The correct answer is option C.
Explanation:
Microeconomics is the branch of economics that studies the behavior of individual economic agents such as a single firm or a single consumer. For instance, it deals with variables such as demand for a single consumer or a supply from a single firm.
Macroeconomics is that branch of economics that studies the entire economy as a whole. It deals with variables such as inflation, unemployment rate, etc.
Answer: B. One asset would increase $1,750 and a different asset would decrease $1,750, causing no effect
Explanation:
From the information given in the question, the journal entry at the time of sales will be represented as:
Debit Accounts receivable $1,750
Credit Sales $1750
Now, when the credit receipt is received as illustrated in the question, the journal entry will be:
Debit Cash $1,750
Credit Accounts receivable $1,750
Therefore, one asset would increase $1,750 and a different asset would decrease $1,750, causing no effect.
The correct option is B.
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Unitary cost:
Variable Costs= $50
Fixed Costs= $25
A special order for 1,000 units has been received from a foreign company. The unit price requested is $55.
If the order is accepted, unit variable costs will increase by $2 for additional freight costs.
Because it is a special offer, we will not take into account the fixed costs.
Unitary cost= 50 + 2= $52
Effect on income= 1,000*(55 - 52)= $3,000 increase
Answer: • Defensive operations are usually common and that the dynamic open market operations is smaller than the volume of the defensive open market operations.
Explanation:
Open market operations is when treasury bills and securities are on sale in an economy. It is typically bought by the central bank to ensure that money is available in an economy.
Open market operations are typically repurchase agreements tells us that defensive operations are usually common and that the dynamic open market operations is smaller than the volume of the defensive open market operations.
