The book value of the bond at the end of year 10 is 1,160
What is the basis for determining premium amortization?
The bond premium amortization is assumed to be determined using the straight-line basis such that bond premium amortized in each year is the same for 18 years of bond investment, in other words, the year 10 bond premium amortization of 20 is the same for all other years.
Total premium on bond issuance=20*18
total premium on bond issuance=360
bond price issued price=par value+ premium=1000+360=1360
As at the end of the 10th year, bond premium amortized thus far is 20 multiplied by 10 years
bond premium amortized=20*10=200
book value of the bond at the end of year 10=1360-200
book value of the bond at the end of year 10=1,160
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Answer:
Gary's Basis in the partnership interest is $155,000
Explanation:
Particulars Amount ($)
Adjusted Basis Of Land 250000
Mortage*Share In Percentage ($200000*50%) (100000)
Additional Borrowing*Share In Percentage ($50000*50%) (25000)
#Difference*Share In Percentage ($100000-$40000)*50% 30000
Basis 155000
Difference:
Net Income 100000
Distribution Of Each Partner*2 ($20000*2) (40000)
Answer:
The materials equivalent units is 37,700
Conversion costs equivalent units is 32,480
Explanation:
The equivalent units of production for materials can be computed thus:
Description quantity % of completion Equivalent units
Completed units 29000 100 29000
(37700-8700)
Ending inventory 8700 100 <u> 8700</u>
total equivalent units for materials 37700
The equivalent units of production for conversion costs can be computed thus:
Description quantity % of completion Equivalent units
Completed units 29000 100 29000
(37700-8700)
Ending inventory 8700 40 <u> 3480
</u>
total equivalent units for conversion costs 32480
I applied 100% percentage of completion to ending inventory when determining materials equivalent units and 40% percentage completion when determining equivalent units for conversion cots as it given in the question
Answer:
C. decrease
Explanation:
In the case when the money demand and the money supply model is used so the open market purchase would result the interest rate of equilibrium to decrease as if there is an open market purchase so it rise the money supply due to which the supply curve of the money move shiftward
Therefore the rate of interest should be decreased