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kaheart [24]
4 years ago
8

Markel Inc. has bonds outstanding during a year in which the general (risk-free) rate of interest has not changed. Markel electe

d the fair value option for the bonds upon issuance. What will the company report for the bonds in its income statement for the year?
Interest expense and a gain.

Interest expense and a loss.

A gain and no interest expense.

Interest expense and no gain or loss.
Business
1 answer:
Dimas [21]4 years ago
5 0

Answer: Interest expense and no gain or loss.

Explanation:

Since Markel Inc. has bonds outstanding during the year in which the general (risk-free) rate of interest has not changed, in its income statement for the year, the company's report for the bonds would be interest expense and no gain or loss.

Note that they have elected the fair value option for the bonds upon issuance, so no gain or loss is expected.

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On January 1 of the current year, the Barton Corporation issued 8% bonds with a face value of $73,000. The bonds are sold for $7
Goryan [66]

Answer:

$6,278

Explanation:

The discount of issuance of bond will be amortized until period of maturity while Total interest expense on a discounted bond is the addition of amortization of the discount amount and coupon payment.

Therefore;

Coupon payment = $73,000 × 8%

= $5,840

Discount on the bond = $73,000 - $70,810

= $2,190

Discount amortized per year = $2,190/5

= $438

Total interest expense = Coupon payment + Amortization of discount

= $5,840 + $438

= $6,278

8 0
3 years ago
A monopoly firm is the only seller of a good or service that A) does not need to be advertised. B) has no close complements C) d
Otrada [13]

Answer:

C) does not have a close substitute.

Explanation:

A monopoly is a market structure where there is only a single seller but many buyers. The seller therefore has more bargaining power over buyers and is therefore the price maker; a monopolist decides and sets the price of the product. Since there is only one seller, it means that the good does not have close substitutes. However, a multi-product monopolist could sell goods or services that are close complements.

3 0
4 years ago
In 1996, Pepsi introduced their "Pepsi Points" promotion, which allowed people to collect points from pop bottles to earn mercha
vredina [299]

The advertisement does not constitute an offer because it lacks:

  • Serious intention.
  • Clear and reasonable defined terms.
  • Communication to the recipient.

An offer is an economic term that refers to that property that is willing to be sold for a price. There are also other types of offers that are related to coupons or discounts for consumers to obtain a reward for their loyalty to a brand.

An offer must have three basic components to be considered true, these must be:

  • Serious intention: This refers to the fact that whoever offers must make the offer in a formal, real and true way
  • Clear and reasonable defined terms: This refers to the fact that whoever offers must establish the terms and conditions clearly and completely for consumers to access them.
  • Communication to the recipient: This refers to the fact that whoever offers must communicate to the consumer through advertising or official communications the information necessary to complete a transaction.

Based on the above, it can be inferred that Pepsi did not make a true offer with its ad because the part in which a young man appears on a Harrier airplane had a humorous tone, this does not show Pepsi's intention to offer this service.

Learn more about an marketing in: brainly.com/question/10789897

7 0
2 years ago
The international agency that administers trade agreements, facilitates trade negotiations, and helps to resolve trade disputes,
Zepler [3.9K]
World Trade Organziation
3 0
3 years ago
Labor economists have recently begun focusing on a new area referred to as personnel economics. Describe what personnel economic
Tems11 [23]

Answer:

The correct answer is letter "A": the effects of labor unions on wages.

Explanation:

Personnel economics is applying economic and mathematical approaches and econometric and statistical strategies to traditional human resource management issues. Personnel economics deals with employees' employment, compensations, training, and management.

8 0
3 years ago
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