Answer:
Young should report proceeds from the sale of bonds as equal to $864,884
Explanation:
The proceeds on the sale of bonds is equivalent to the present value of all the cash flows that are likely to accrue to an investor once the bond is bought. These cash-flows are the periodic coupon payments that are paid semi-annually and the par value of the bond that will be paid at the end of the 5 years.
During the 5 years, there are 10 equal periodic coupon payments that will be made. In each year, the total coupon paid will be
and this payment will be split into two equal payments equal to 
. This stream of cash-flows is an ordinary annuity
The periodic market rate is equal to 
The PV of the cashflows = PV of the coupon payments + PV of the par value of the bond
=$40,000*PV Annuity Factor for 10 periods at 4%+ 
Answer:
![Px = \frac{[(N*P) +(N*P*M1]/N}{1+ M2}](https://tex.z-dn.net/?f=Px%20%3D%20%5Cfrac%7B%5B%28N%2AP%29%20%2B%28N%2AP%2AM1%5D%2FN%7D%7B1%2B%20M2%7D)
And if we replace we have this:
![Px =\frac{[(500*41) +(500*41*0.6]/500}{1+ 0.4}](https://tex.z-dn.net/?f=%20Px%20%3D%5Cfrac%7B%5B%28500%2A41%29%20%2B%28500%2A41%2A0.6%5D%2F500%7D%7B1%2B%200.4%7D)
So then the highest the stock price can go before you receive a margin call if the maintenance margin is 40 percent is $ 46.86.
See explanation below.
Explanation:
For this case we define the following notation:
N= 500 represent the number of stocks for JAsper
P = 41 represent the stock price
M1 = 60% = 0.6 represent the initial margin
Px represent the highest stock price the variable of interest for this case
M2= 40% or 0.4 represent the mainteneance margin
We can find the value of Px with the following formula on this case:
And if we replace we have this:
So then the highest the stock price can go before you receive a margin call if the maintenance margin is 40 percent is $ 46.86.
Answer:
Being appreciated by people.
Answer: $68,600
Explanation:
Investment Income using Equity method = Plastic company Share in income of Spoon company - Depreciation on Assets
Plastic Company share in Income of Spoon Company = 100% * 78,000 = $78,000
Land cannot be depreciated so only Equipment will be depreciated.
= 94,000/10 years
= $9,400
Investment Income using Equity method = 78,000 - 9,400 = $68,600
Answer:
$5789
Explanation:
Calculation to determine the amount realized by Casey in the exchange
Fair market value of stock $5250
Add Cash in transaction $ 720
Add Liability which is going to the buyer $ 830
Less Selling expenses ($461)
Amount realized $5789
($5250+$720+$830-$461)
Therefore the amount realized by Casey in the exchange is $5789
