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Pontchartrain Company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2017. Interest is paid on June 30 and De

solmaris [256]

Answer:

$1,568,498

Explanation:

First calculate the Amont of discount

Discount on the bond = Face value - Proceeds from the bond = $20,000,000 - $19,604,145 = $395,855

Now prepare the bond amortization

The Bond Amortization schedule is attached with this answer, please find it.

Now calculate the interest expense for 2017

Interest Expense 2017 = $784,165.80 + $784,332.43

Interest Expense 2017 = $1,568,498.23

Interest Expense 2017 = $1,568,498

3 0

3 years ago

There are a few people in line waiting to be served. you are taking care of one customer and she insists you gave her the incorr

Leto [7]

You enforce the rules, state you did correctly count the amount of money, no exceptions.

5 0

3 years ago

How do i give brainlyest

Roman55 [17]

Answer:

when you ask a question and you get one answer you cant give someone brainliest until another person answers and after two people answer you chose which one is the best by clicking the little crown in the upper right corner of their answers

Explanation:

3 0

3 years ago

A competitive firm currently produces and sells 7,500 units of output at a price of $2.50 per unit. The firm's average fixed cos

saveliy_v [14]

Answer:

A. $-2,250

B. The firm should continue to operate in the short run because price is greater than average variable cost

C.The firm should exit in the long run because it is making losses

D. In the long run, prices would increase because in a competitive firm, price must equal average cost. As firms exit the industry, supply would fall and this would lead to an excess of demand over supply. As a result, price would rise

Explanation:

A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.

In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.

Profit = Total revenue - Total cost

( $2.50 - $2.80) × 7,500 = $-2,250

The firm is earning a loss

A firm should shutdown in the short run if price is less than average variable cost.

Average variable cost = average total cost- average total cost

$2.80 - $0.75 = $2.05

2.50 > 2.05 so the firm should continue to operate in the short run.

The firm should exit in the long run because it is making losses

In the long run, prices would increase because in a competitive firm, price must equal average cost

I hope my answer helps you.

3 0

3 years ago

Pulaski Plumbing Supply is planning to bring a new type of valve to market and is conducting a break-even analysis. For this ana

vekshin1

Answer:

break-even point (BEP) = 25,000 items

Explanation:

given data

Selling price = $2.50

Fixed costs = $10,000

Variable cost = $2.10

solution

we know that Revenue is sum of Fixed costs and variable costs

so we use here contribution margin method that is

Contribution margin = $ 2.50 - $ 2.10

Contribution margin = $ 0.4

so

break-even point (BEP) for the valve is here

break-even point (BEP) = fixed cost ÷ Contribution margin ...................1

put here value

break-even point (BEP) = $\frac{10000}{0.4}$

break-even point (BEP) = 25,000 items

4 0

3 years ago