Answer: coupon rate is greater than its yield to maturity
Explanation: This is because investors are interested in high yield and will not mind paying for it in other to get a higher payment from coupon.
Answer:
b. 13.9%
Explanation:
sales 7,000,000
variable cost <u> (3,000,000) </u>
contribution 4,000,000
fixed cost (1,500,000)
interest <u> (480,000) </u>
EBT 2,020,000
tax expense (707,000)
net income 1,313,000
contribution margin 4,000,000 / 7,000,000 = 4/7
if sales increase by 7%:
7,000,000 x 0.07 x 4/7 x (1- 0.35) = 182,000
income after increase in sales: 1,313,000 + 182,000 = 1,495,000
increase in earnings: 1,495,000 / 1,313,000 - 1 = 0.138613861 = 13.9%
Answer:
January 1, 2020
Bonds Payable 1600000 Dr
Loss on Redemption of bonds 36800 Cr
Discount on Bonds Payable 4800 Cr
Cash 1632000 Cr
Explanation:
The redemption of bonds before the maturity usually requires a payment for redemption which is a certain percentage of its face value. It is usually higher than the face value. The above bonds are redeemed at 102 which means at 102% of the face value of the bonds. Thus, the cash paid to redeem the bonds is,
Cash = 1600000 * 102% = 1632000
The bonds have a carrying value, which is the face value less discount or add premium, of,
Carrying value = 1600000 - 4800 = $1595200
If they are redeemed for an amount in excess of the carrying value, they are redeemed at a loss.
The loss on redemption is,
Loss = 1595200 - 1632000 = $36800
Answer:
This is a repeat question on Brainly but here you go.
<h2><em>
$51,500
</em></h2>
Whether original cost or replacing cost is given in the question but we considered that cost in which the partner give their consent
So, the equipment amount should be debited at <em>$51,500
</em> instead of the original cost or the replacing cost
