The name of the interest payments that a bond holder receives for purchasing a bond is: c. coupon.
coupon is periodic interest payment, which the copun rate is the yield that the bond pays on its issue date.
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Answer:
The Child tax credit would be $4,000 and the dependent tax credit would be $500.
Explanation:
There are 3 children, one age is 5 years and other is 6 months so both qualify for child tax credit and 3rd one is of 18 years, he will not qualify for child tax credit as it should be under 17. Therefore, he must be dependent.
Child tax credit would be computed as:
As one child age is 5 years and other one is 6 months, so both are eligible under the child tax credit. So, the Child tax credit per qualifying child is $2,000
As the combined income is $68,000 which is less than the threshold limit of $200,000. Therefore, the full credit will be claimed.
In this case, there are two child. Therefore,
= $2,000 × 2
= $4,000
For dependent, the tax credit amounts to $500
Answer:
Total PV= $2,736.39
Explanation:
Giving the following information:
Year Cash Flow
1 $ 870
2 950
3 0
4 1,540
<u>First, we need to calculate the real annual discount rate:</u>
Quarterly Discount rate= 0.08/4= 0.02
Real annual interest rate= [(1+i)^n] - 1
Real annual interest rate= [(1.02^4) - 1]
Real annual interest rate= 0.08243
<em><u>Now, we can calculate the present value of the cash flows:</u></em>
PV= Cf/(1+i)^n
Year 1= 870/1.08243= 803.75
Year 2= 950/1.08243^2= 810.82
Year 4= 1,540/1.08243^4= 1,121.82
Total PV= $2,736.39
Answer and Explanation:
The computation is shown below:
a.
The amount of the adjusting entry for bad debt expense should be
= $45,000 + $5,400
= $50,400
The journal entry should be
Bad Debt Expense Dr. 50,400
To Allowance for Doubtful Accounts Cr. 50,400
(Being the bad debt expense is recorded)
b.
Accounts Receivable 675,000
Allowance for Doubtful Accounts 45,000
Bad Debt Expense 50,400
c.
Accounts Receivable 675,000
Less: Allowance for Doubtful Accounts (45,000)
Net realizable value of accounts receivable 630,000
