In the consolidation eliminating entries for 2021, the equipment account (gross cost) is reduced by a net amount of <u>$340,000</u>.
<u>Explanation</u>:
<em><u>Given</u></em>:
Selling cost of equipment = $520,000
Original cost of the equipment = $200,000
Depreciation of asset = $20,000
The net amount of the Equipment = Original cost - Accumulated Depreciation
The net amount = $200,000 - $20,000 = $180,000
The Profit on Sale of the Equipment = Selling cost - The net amount
= $520,000 - $180,000
= $340,000
The equipment account (gross cost) is reduced by a net amount of <u>$340,000
</u>.
Answer:
B) The coupon rate could be less than, equal to, or greater than 6%, depending on the specific terms set, but in the real world the convertible feature would probably cause the coupon rate to be less than 6%.
Explanation:
Amram Inc. is issuing two bonds, one is not convertible and the other one is convertible and callable. Regardless of the coupon rate that they plan to set, convertible and callable bonds will usually (almost always) have a coupon rate that is lower than non-convertible or non-callable bonds.
Convertible bonds are bonds that can be converted or exchanged to common stock. Since convertible bonds offer more investment options, their risk is lower than non-convertible bonds.
Callable bonds is a bond that can be redeemed before the maturity date.
Answer:
C.
Explanation:
C. more borrowers opt for short-term loans
Commonly, short-term loans are easier for businesses to qualify for than long-term loans. Those alternative lenders are more inclusive than banks, of which borrowers they approve for their loans.
But without a strict set of requirements for weeding out risky borrowers, in the case of a mortgage default, short-term lenders need another way to protect their interests.For this reason, typically short-term loans come with higher interest rates than long-term loans. The additional costs ensure short-term lenders make money from their loans, even if a borrower defaults.
TD Ameritrade is an example of a brokerage firm, a type of non depository financial institution.
<h3>What are financial institution?</h3>
Financial institution is referred as statutory body which helps in dealing with the financial transactions which includes withdrawing and depositing of money, allowing loans and helping in exchange for the currency.
A brokerage business is a location where stock buyers and sellers can exchange. The company serves as a mediator between buyers and sellers and offers an open trade environment.
This brokerage helps to crack the best deal for their clients. They help to negotiate to get the best resources for business and achieve profit.
Therefore, TD Ameritrade shows the example of brokerage firm.
Learn more about financial institution, here:
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Answer:
Added overdraft protection feature to her checking account
Explanation:
Overdraft protection is a form of credit facility offered by banks. The facility allows transactions such as checks, electronic payments, and transfers to go through even if the account has insufficient funds. Overdraft protection safeguards against bouncing payments, which attract heavy penalties.
Ann has a debit card. She can only shop with funds available in her accounts. Debit cards do not have an automatic credit feature. Ann should have activated overdraft protection on her debit card. She would have linked her savings account to her checking account so that the debit card can draw from her savings account. Savings accounts qualify for overdraft protection.