Answer:
A Mortgage Backed Bond is:
e. A loan in which security interest in real estate is granted by a borrower.
Explanation:
A mortgage backed bond is tied to or secured on a real estate asset. This implies that the bond is not just a promise to pay a debt obligation but the attached promise is secured or backed by some real assets. There is extra security provided for the bond because specific assets are identified as securities for the bond. Since the bonds are associated with some real assets, the assets can be traded in the event that the debt obligations are not met.
Answer:
B. $12,000 is a sunk cost
Explanation:
By considering the given information, the cost that is correct is a sunk cost for $12,000
The sunk cost is the cost already incurred and will not be retrieved in the future. Plus, it's also termed a past cost.
It is a useless cost and it can be avoided also.
It is that cost that is not considered at the time of decisions making.
So, option B is correct
The amount that Harry should pay for the investment is the present value of the net income discounted at the rate of return of 12% is equal to $270,000.
<h3>What do you mean by investment?</h3>
Investment refers to the dedication of an asset to acquire growth in value over a duration of time. In finance, the motive of making an investment is to generate a return from the invested asset.
As per the information,
The vacancy rate is given is 5%
The occupancy rate is 100 - 5= 95%
Now, if it is assumed that the income is earned forever, then the present value of the income will be
PV of net income = A/r
A- 32400 , r - 12%
Hence, The amount that Harry should pay for the investment is the present value of the net income discounted at the rate of return of 12% is equal to $270,000.
Learn more about investment:
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Answer:
$0
Explanation:
The computation of the revenue recognized is shown below:
= Price per unit × number of units delivered in march month
= $15 × 0 units
= $0
Since 0 units delivered in the march month and if we multiplied the price per unit with the march units i.e. 0 so the answer should be zero only
The amount that McClelland Company should record the machine upon purchase is<u> $56,505.</u>
<h3>Recording the transaction</h3>
The proper way to record the transaction based on U.S. GAAP polices is to debit the Machine account with the price of $56,505 as this represents the market value of the machine.
The company should also credit the Notes payable account with $70,000 being the value of the note acquired. A debit will go to the Discount on Note account for $13,495 which is the difference between the note and value of machine.
Find out more on recording Notes Payable at brainly.com/question/17073934.
