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almond37 [142]
2 years ago
14

Morgan Company issues 10%, 20-year bonds with a par value of $720,000 that pay interest semiannually. The current market rate is

9%. The amount paid to the bondholders for each semiannual interest payment is:
Business
1 answer:
faust18 [17]2 years ago
7 0

Answer:

$36,000

Explanation:

Calculation for the amount to be paid to the bondholders for each semiannual interest payment

Using this formula

Semiannual interest payment = Face value Amount*Interest Rate*Time

Let plug in the formula

Semiannual interest payment = $720,000*0.10*0.50

Semiannual interest payment = $36,000

The amount paid to the bondholders for each semiannual interest payment is $36,000

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On December 31, 2021, Coolwear Inc. had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $40,000 and
DerKrebs [107]

Answer:

$4,775

Explanation:

Given that,

Allowance for Uncollectible Accounts = $1,700

Write off in Accounts receivable during the year = $875

Allowance for Uncollectible Accounts required = $5,600

Closing Allowance for Uncollectible Accounts:

= Allowance for Uncollectible Accounts - Write off in Accounts receivable during the year

= $1,700 - $875

= $825

Bad debt expense for 2022:

= Allowance for Uncollectible Accounts required - Closing Allowance for Uncollectible Accounts

= $5,600 - $825

= $4,775

6 0
3 years ago
On January 1, GHI Corporation issued four-year bonds with a face value of $100,000. The bonds have a stated interest rate of 4 p
Eva8 [605]

Answer:

Year   Cashflow    [email protected]%        PV

              $                                  $

1          4,000         0.9524      3,809.60

2         4,000         0.9070       3,628.00

3         4,000         0.8638        3,455,20

4         104,000     0.8227         85,560.80

      Market price of the bond   96,454

The amount that GHI received at issuance is $96,454.

Explanation:

In this case, we need to calculate the current market value of the bond.  The annual coupon is calculated as R = 4% x $100,000 =$4,000, which is 4% of the face value. We will discount the annual coupon and face value  of the bond at 5% market interest rate. The cashflow for year 4 is the aggregate of coupon and face value of the bond. The current market value of the bond calculated above is the amount that GHI received at issuance of the bond.

6 0
3 years ago
Examples of comparative advantage show how trade between two countries can make each better off. Compared to their pre-trade pos
Vika [28.1K]

Answer:

The correct answer is option B.

Explanation:

Comparative advantage refers to the situation when a nation or individual is able to produce a good or service at a comparatively lower opportunity cost. The nation is said to specialize in the good or service it can produce at a lower opportunity cost.

Trade through specialization helps both the nation involved in the trade to consume more. Each nation produces more of the good it specializes in and exchanges it for the good it does not specializes in.

In this way, both of them are able to consume beyond their production possibility curves.

3 0
3 years ago
Whippet Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a co
Jet001 [13]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Whippet Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, for $100,000. Over its 4-year useful life, the bus is expected to be driven 160,000 miles. Salvage value is expected to be $8,000.

Compute the depreciation cost per unit.

Depreciation per unit= (100,000 - 8,000)/160,000= $0.575 per mile.

Prepare a depreciation schedule assuming actual mileage was: 2017, 40,000; 2018, 52,000; 2019, 41,000; and 2020, 27,000.

Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced

2017= 0.575*40,000= 23,000

2018= 0.575*52,000= 29,900

2019= 0.575*41,000= 23,575

2020= 0.575*27,000= 15,525

8 0
3 years ago
Coyote Loco, Inc., a distributor of salsa, has the following historical collection pattern for its credit sales.
Anna [14]

Answer:

80 perent...

Explanation:

7 0
3 years ago
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