Answer:
$35,000
Explanation:
Since this is an operating lease (short lease term, no transfer of ownership, and low present value of lease payments), the lessor has to record a depreciation expense, but the lessee only considers lease payments as operating costs (no depreciation expense or lease liability should be recognized).
Depreciation expense per year under the straight line method = asset cost / useful life = $280,000 / 8 years = $35,000
Answer:
A. AA-rated revenue bond that is escrowed to maturity
Explanation:
As first option is the bond that the issuer of bond called back prior to the matured. It occurs when there is a fall in the rate of interest
The second option is backup by a pledge that involves full trust and contains the secure option that enables an individual free from the federal income tax
The third option are issued by the authorities that are local and governed by the U.S government so it become secure that enables an individual free from the federal income tax
The fourth option is the mix of revenue bonds and the obligation bonds hat involves full trust and contains the secure option that enables an individual free from the federal income tax
Answer:
The clean price of the bond is $1,062.
Explanation:
Accrued interest is the coupon payment for the period times the fraction of the period that has passed since the last coupon payment. Since we have a semiannual coupon bond, the coupon payment per six months is one-half of the annual coupon payment. There are two months until the next coupon payment, so four months have passed since the last coupon payment. The accrued interest for the bond is:
Accrued interest = $99/2*4/6
= $33
And we calculate the clean price as:
Clean price = Dirty price – Accrued interest
= $1,095 – 33
= $1,062
Therefore, The clean price of the bond is $1,062.
Answer:
PV= $124,867.78
Explanation:
Giving the following information:
Cash flow= $37,250
Discount rate= 15%
Number of periods= 5 years
<u>To calculate the present value, we need to use the following formula:</u>
PV= A*{(1/i) - 1/[i*(1 + i)^n]}
PV= 37,250*{(1/0.15) - 1/[0.15*(1.15^5)]}
PV= $124,867.78
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