Answer:
a) Bond A's current yield is greater than that of Bond B.
TRUE As every other alternative as been proveed incorrect
Also, this satement refers to the amount stated in the coupon rate.
Explanation:
c) Bond A trades at a discount, whereas Bond B trades at a premium.
FALSE
A trades as premium as thei coupon rate is higher than market value so investor are willing to purchase at a hihger price until achieve the 8% return
d) If the yield to maturity for both bonds remains at 8%, Bond A's price one year from now will be higher than it is today, but Bond B's price one year from now will be lower than it is today.
FALSE As A is traded at premium it will decrease over time to match the face value
e) Bond A's capital gains yield is greater than Bond B's capital gains yield.
FLASE As Bond A will decrease their price over time it will make capital losses.
The correct answer is: Total utility rises first but the begins a sudden fall when the marginal utility points toward the negative while Marginal utility falls when each unit is purchased.
<h3>What is utility?</h3>
Utility is a form or state of being profitable or beneficial. It shows the usefulness of the item to an individual.
Marginal utility is the addition made to total utility while total utility is the aggregate of all utility that is derived by the consumption of all commodities.
Learn more about Utility here:
brainly.com/question/20659068
Answer: debit amortization expense account $2.5million
Question:
Required: Prepare the appropriate adjusting entry for patent amortization in 2013 to reflect the revised estimate.
Explanation: Amortization is the deduction made every period to reflect the cost of an intangible asset such as patent and intellectual property.
When amortization uses a straight line method, which is usually the case in patents, we deduct equal usefulness over its useful life and deduct equal amounts every period.
The patent has already been amortized at an amount of $1 million ($9 million divided by 9 years) annually for 4 years (2009, 2010, 2011, 2012).
This leaves us with $5 million to be amortized ($9 million - $4 million ). However the useful life has been adjusted to 6 years instead of 9, so $5 million has to be amortized in 2 years, making the amount to be deducted $2.5million per year.
On December 31, 2013, we will debit amortization expense account $2.5million and credit the patent account with $2.5million
Answer: The transactions along with the money flow are as follows:
Explanation:
a. When an Australian company purchases steel from the U.S firm then the U. S firm receives the payment for its sale of goods.
b. The purchase of foreign currency will in turn be the payment to the foreigners.
c. The profit earned by the U.S based company is factor income. It is the payment obtained from the foreigners.
d. The English company is buying the assets from the U.S. confectionery manufacturer. This will involve the private sale as well as the purchase of the assets and payment from foreigners.
