This is an example of<u> "deductive reasoning".</u>
Deductive reasoning is a coherent procedure in which a conclusion depends on the concordance of numerous premises that are commonly thought to be valid.
Deductive reasoning is sometimes alluded to as top-down logic. Its partner, inductive thinking, is some of the time alluded to as base up rationale. Where deductive thinking continues from general premises to an explicit end, inductive thinking continues from explicit premises to a general end.
With the explanations given above, Mort was offered a line
of credit. A line of credit is the agreement of a bank with a business to make a
maximum amount of money available to them in an unsecured, short-term loan. The
agreement is however dependent on the bank’s availability of funds.
B.) It is known as EQUILIBRIUM CONSTANT.
Investment because u save up more money in what you want
Answer:
interest portion (17th payment) = $22.24 ≈ $22
premium amortization portion (17th payment) = $17.76 ≈ $18
Explanation:
the market price of the bond:
PV of face value = $1,000 / (1 + 2%)²² = $646.84
PV of coupon payments = $40 x 17.658 (PV annuity factor, 2%, 22 periods) = $706.32
market price = $1,353.16
the journal entry to record the investment in bonds:
Dr Bonds receivable 1,000
Dr Premium on bonds receivable 353.16
Cr Cash 1,353.16
I prepared an amortization schedule using excel to determine the interest portion of the 17th payment and the premium amortization portion.
interest portion (17th payment) = $22.24 ≈ $22
premium amortization portion (17th payment) = $17.76 ≈ $18