Sheridan Company shows the following balances in selected accounts of its adjusted trial balance.

AB Builders, Inc., has 18-year bonds outstanding with a par value of $2,000 and a quoted price of 102.037. The bonds pay interes

I am Lyosha [343]

Answer:

6.82%

Explanation:

In this question we use the PMT formula that is shown on the attachment below:

Given that,

Present value = 102.037% × $2,000 = $2,040.74

Future value = $2,000

Rate of interest = 6.62% ÷ 2 = 3.31%

NPER = 18 years 2 = 36 years

The formula is shown below:

= PMT(Rate;NPER;-PV;FV;type)

The present value come in negative

So, after solving this, the monthly payment is $68.15

Now the coupon rate is

= PMT ÷ face value × 2

= $68.15 ÷ $2,000 × 2

= 6.82%

8 0

3 years ago

Beth Corbin’s regular hourly wage rate is $16, and she receives an hourly rate of $24 for work in excess of 40 hours. During a J

Vika [28.1K]

Answer:

Gross Earnings $760

Net Earnings $606.86.

Explanation:

Beth's regular hourly wage is 40 hours at the rate of $16 per hour.

40 x 16 = $640

Overtime hourly wage is additional hours after the normal 40 hours at the rate of $24.

5 x 24 = $120

Gross earnings is calculated by adding both the above amounts.

640 + 120 = $760

Her employer will charge FICA rate of 7.65% for the amount she earns (Gross Earnings).

760 x 7.65% = 58.14

Net Earnings will be Gross Earnings less FICA and federal income tax $95.

760 - 58.14 - 95 = 606.86

Hence, Beth's Gross Earnings are $760 and Net Earnings are $606.86.

8 0

3 years ago

A manufacturing company that produces a single product has provided the following data concerning its most recent month of opera

wolverine [178]

Answer:

C) $88,000

Explanation:

period cost: cost which cannot be capitalize through inventory or other assets.

Under variable cost, the fixed cost are treated as period cost.

Fixed costs:

Fixed manufacturing overhead $ 60,000

Fixed selling and administrative expense $ 28,000

6 0

3 years ago

A company wants to set up operations in a country with the following corporate tax rate structure: Taxable Income Tax Rate <$

Gre4nikov [31]

Answer:The company should pay $3,000 in taxes

Explanation:

Taxable Income= Gross Revenues -Total cost- Allowable Deduction

=$ 500,000 –$ 450,000 - $30,000= $20,000

Gross Tax Liability=Given that the taxable income and tax rate as

<$50,000--- 15%

$50,000 - $75,000 ----25%

$75,000 - $100,000----34%

>$100,000----- 39%

Our calculate taxable income is less than <50,000, ie $20,000 from our Gross revenue

The gross tax liability, will now be 15% of $20,000=0.15 x 20,000= $3000

The company should pay $3,000 in taxes

6 0

4 years ago

An investor in Treasury securities expects inflation to be 1.6% in Year 1, 3.05% in Year 2, and 3.85% each year thereafter. Assu

mixer [17]

Answer:

The difference between two securities is 0.89%.

Explanation:

Inflation premium for the next three and five years:

Inflation premium (3) = (1.6% + 3.05% + 3.85%) ÷ 3

= 2.83%

Inflation premium (5) = (1.6% + 3.05% + 3.85% + 3.85% + 3.85%) ÷ 5

= 3.24%

Real risk-free rate = 2.35%

Since default premium and liquidity premium are zero on treasury bonds, we can now solve for the maturity risk premium:

Three-year Treasury securities = Real risk-free rate + Inflation premium (3) + MRP(3)

6.80% = 2.35% + 2.83% + MRP(3)

MRP (3) = 1.62%

Similarly,

5-year Treasury securities = Real risk-free rate + Inflation premium (5) + MRP(5)

8.10% = 2.35% + 3.24% + MRP(3)

MRP (5) = 2.51%

Thus,

MRP5 - MRP3 = 2.51% - 1.62%

= 0.89%

Therefore, the difference between two securities is 0.89%.

4 0

3 years ago