Answer:
The price of the bond is $ 21,541.53
Explanation:
The price of the bond is the present value of all cash inflows expected from the bond throughout the bond's life.
The cash inflows comprise of coupon interest interest payments as well as the repayment of the principal amount(the face value of $20,000) at redemption.
The present value is computed by multiplying the cash inflows by the discount factor.
The formula for discounting factor =1/(1+r/2)^t
r is the required yield of 5.4% divided by 2 since the coupon is payable twice a year.
Find attached.
Answer:
$6,500
Explanation:
Allowance for doubtful accounts is a reduction in the total amount of accounts receivable given in the company´s balance sheet. Such an allowance is actually and estimate from the management of the accounts receivables that it doesn´t expect to receive.
Ecuation:
Adjustment = - Beginning balance + Write offs + Ending balance
Adjustment = ($2,700) + $4,800 + $4,400
Adjustment = $6,500
The estimation of the write off from the previous year must be discounted, the added the write off registered during the year plus the estimate at the end of the period.
Answer:
Federal social insurance taxes include OASDI taxes (Social Security) and Medicare taxes. Currently. In 2012, the Social Security tax limit was $110,100, while their was no limit on Medicare.
The Social Security tax rate was temporarily reduced during 2011 and 2012 from 6.2% to 4.2%, so your Social Security tax withholdings were $4,624.20 in 2012.
Medicare taxes did not change in 2012 and were 1.45%, so your Medicare tax withholding were $1,812.50 in 2012.
Answer:
$440,140
Explanation:
According to the accounting principle, the inventory should be valued at lower of cost or market value. The calculation is shown below:
Cost Market Lower value
Small $68,650 $56,490 $56,490
Medium $283,710 $237,140 $237,140
Large $146,510 $177,300 $146,510
Total $440,140
Hence, the ending inventory would be valued at $440,140
Answer:
The correct answer is letter "A": I and III.
Explanation:
A Hedge Fund is a private investment fund that markets itself almost exclusively to wealthy investors. They are aggressive risk-seeking investment funds that typically use leverage to magnify returns. Hedge funds are not subject to the Investment Company Act of 1940 and profits usually from an annual management fee (usually 2%). Besides, most hedge funds charge a performance fee based on profits earned.
