Answer:
cash 595,900 debit
bonds payable 590,000 credit
premium on bonds 5,900 credit
Explanation:
We have to record the issuance of the bonds:
<em><u>cash proceeds:</u></em>
face value x quote:
590,000 x 101/100 = 595,900
face value <u> (590,000)</u>
<em>premium </em> 5,900
<em>There is a premium as we are receiving more than we are going to pay at maturity.</em>
We will debit the cash proceeds form the bond
and credit the bonds and premium
While both types of insurance are required, if you do not have health insurance, you will be required to pay a fee on your taxes.
FYI, while this used to be true the United States has recently removed the requirement known as the "individual mandate" for people to have health insurance or face a penalty.
Answer:
$74.61
Explanation:
The computation of the value of preferred stock is shown below:
Value of preferred stock = Annual dividend ÷ return of preferred stock per share
= 10.40% × 100 ÷ 13.94%
= $74.61
Simply we divide the annual dividend by the value of preferred stock per share so that the correct value of preferred stock can be computed
Answer:
1. When income transfers to the ablebodied poor increase, the recipients will have less incentive to work.
The incentive to work for most people is earning a wage to make a living.
For the poor, this incentive is even more so, because usually, the lack of work for them means severe lacking in their material needs: shelter, food, clothing, electricity, drinking water, and so on.
If the poor are given income transfers from the government, they will have less incentive to work simply because they now obtain some income without the need of doing so.
The incentive to work is reduced even more if the income transfers to the ablebodied poor increase so much that they become higher than the minimum wage. In a situation like this, many ablebodied poor will simply stop searching jobs because they can earn more money from the government by not working.
Answer:
Correct option is (b)
Explanation:
Time available for work if Melanie chooses to travel by air = 7 hours
Income per hour = $40
Total income earned if chooses to travel by air = 40 × 7 = $280
Time available for work if Melanie chooses to drive = 4 hours
Total income earned if chooses to drive = 40 × 4 = $160
Price differential = 280 - 160 = $120
As a rational decision maker, Melanie will choose to fly over drive only if her price differential is below $120. She will choose to drive if price differential is above $120.
