1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
miss Akunina [59]
3 years ago
10

On February 1, 2020, Pat Weaver Inc. (PWI) issued 10%, $1,000,000 bonds for $1,116,000. PWI retired all of these bonds on Januar

y 1, 2021, at 102. Unamortized bond premium on that date was $92,800. How much gain or loss should be recognized on this bond retirement
Business
1 answer:
marta [7]3 years ago
4 0

72,800 gain should be recognised on this bond retirement

Solution:

Bond redemption applies to repurchases of newly sold debt by creditors. If the bonds have been issued, the borrower excludes the debt due in its accounts at the expected maturity of those instruments.

Paid at redemption : $1,000,000 * 102          = 1,020,000    

Book value: $1,000,000 + $92,800               = 1,092,800

                                                                      ----------------------

Gain on bond retirement                                 = 72,800

You might be interested in
A study examining the performance of numerous assets from the United States and around the world confirms that a. U.S. equities
antoniya [11.8K]

Answer:

d. beta did a better job of explaining the returns than standard deviation

Explanation:

Beta measures the systemic risk associated with the particular investment, it do not compute the total risk associated, which is more  logical.

Standard deviation computes the total risk associated.

Some risk is natural, like the risk of floods, natural calamities, earthquake, etc:

That risk shall not counted as for comparison as that is associated universally. Further, the risk associated with particular factors like bankruptcy of a company, or some legal case issue of a company are precisely described by beta coefficient.

Thus, beta provides better details about explaining the returns.

5 0
2 years ago
Trout farming is a perfectly competitive industry and all trout farms have the same cost curves.
Diano4ka-milaya [45]

Answer:

(i) The farm can cover its revenue using its total variable cost, therefore the farm will continue producing 200 units

(ii)  The farm cannot cover its revenue using its total variable cost, therefore the farm will shut down

(iii)  The two relevant points on supply curve will be: (Price = $12 & Quantity = 0) and (Price = $25 & Quantity = 200)

Explanation:

(i)According to given data,  When output is 200 but price is $20, this price is equal to ATC, so the farm breaks even. But since this price is higher than AVC of $15, the farm can cover its revenue using its total variable cost, therefore the farm will continue producing 200 units.

(ii) When output is 200 but price is $12, this price is equal to ATC, so the farm makes economic loss. Also, this price is lower than AVC of $15, so the farm cannot cover its revenue using its total variable cost, therefore the farm will shut down.

(iii) The farm's supply curve is the portion of its Marginal cost (MC) curve above the minimum point of AVC. Since price equals MC, the two relevant points on supply curve will be: (Price = $12 & Quantity = 0) and (Price = $25 & Quantity = 200).

4 0
3 years ago
Mr. Brown wants to buy a Tesla Model S car, whose price is $100, 848. The dealer offers a loan plan: $30, 000 downpayment, $X at
algol [13]

Answer:

X is $30,000

Explanation:

First, we need to calculate the Amount ofLoan

Amount of Loan = Car price - Down payment = $100,848 - $30,000 = $70,848

This is the situation of annuity payment for 4 years at a 25% interest rate with equal annuity payment each year.

Now we will use the following formula to calculate the value of X

PV of Annuity = Annuity payment x ( 1 - ( 1 + interest rate )^-numbers of years ) / Interest rate

Where

PV of Annuity = Amount of Loan = $70,848

Interest rate = 25%

Numbers of years = 4 years

Annuity Payment = X = ?

Placing values in the formula

$70,848 = X x ( 1 - ( 1 + 25% )^-4 ) / 25%

$70,848 = X x 2.3616

X = $70,848 / 2.3616

X = $30,000

6 0
2 years ago
A voluntary tricare health maintenance organization type of option is known as
NemiM [27]
<span>A voluntary tricare health maintenance organization type of option is known as TRICARE Prime. Being a member of this tricare gives a possibility to choose a primary doctor, that coordinates all of your health care, from a network. Also, it offers routine exams, immunizations and preventive services with no copayment.</span>
8 0
3 years ago
The part of the subfield of cultural anthropology that debates issues of human nature that relate directly to the decisions of d
boyakko [2]

Answer:

Economic anthropology

Explanation:

  • The Economic anthropology as subfield that explains that the humans economic behavior and anthropology have a complex relation with economics as the field focuses on an the exchange, the production, and consumption.
  • They study the operations of the corporations, banks, and the global financial perspective.
  • <u>With the rise of the globalized economies, the anthropologists are analyzing the cultural situations as the universal applicability of money is being used as a means of revealing the culture by money that market based societies have formed.</u>
6 0
2 years ago
Other questions:
  • The following market information was gathered for the corporation. The firm has 1,000 bonds outstanding, each selling for $1,100
    11·1 answer
  • A prepurchase inspection is different from a pre-sale inspection in there
    13·1 answer
  • Lee worked on a global team for an American company, and all her work had to be completed in her second language, English. Somet
    13·1 answer
  • A letter of intent is a type of mini-proposal. Which type of letter is often included at the beginning of a technical report
    15·1 answer
  • On October 28, 2013, Mercedes Company committed to a plan to sell a division that qualified as a component of the entity accordi
    5·1 answer
  • In addition to compensation, customers expect _____. in other words, they expect fairness in terms of policies, rules and timeli
    9·1 answer
  • Read the scenario and question below; then select the correct answer.
    12·1 answer
  • bob katz and sally mander are a married couple with four children. total wages for 2018 equaled $102,400. stock which had been p
    15·1 answer
  • From the list below, choose the items that are classified as a materials activity(You may select more than one answer.
    14·1 answer
  • Consider each of the transactions below. All of the expenditures were made in cash.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!