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swat32
3 years ago
14

"In 2020, a customer buys a 3 3/4% U.S. Government bond maturing in 2029 at 104-16. The customer elects to amortize the bond pre

mium for tax purposes. If the bond is sold after 2 years, its cost basis at that time is:"
Business
1 answer:
Lana71 [14]3 years ago
8 0

Answer:

carrying value after 2 years = $967.64

Explanation:

the journal entry to record the purchase of  the bond:

Dr Investment in bonds 1,000

Dr Premium on investment in bonds 41.60

    Cr Cash 1,041.60

Assuming a straight line amortization, the yearly amortization = $41.60 / 9 years = $4.62 per year

carrying value at moment of purchase = $958.40

carrying value after 1 year = $963.02

carrying value after 2 years = $967.64

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For a branded house strategy, the following is often essential, (C) use of strong, individual, or separate brand names.

<h3>What is branded house strategy?</h3>
  • A Branded House is a marketing approach in which multiple companies' products are sold under one name/branding umbrella.
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Therefore, for a branded house strategy, the following is often essential, (C) use of strong, individual, or separate brand names.

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7 0
1 year ago
during 2017, trey corporation accrued warranty expense based on 3.5% of net sales revenue. during 2018, trey corporation revised
aleksandr82 [10.1K]

For the year ended December 31, 2018, the warranty-related entry would include a debit to warranty expense of $80,000.

If it's miles impracticable to determine the cumulative impact of applying a trade-in accounting principle, then the new accounting principle should be applied prospectively as of the earliest date practicable. in this situation, the disclosures discussed in FSP 30.4.

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8 0
1 year ago
It's important to note that sometimes private solutions to externalities do not work. For example, this occurs when an excessive
Svetlanka [38]

Answer:

Transaction cost

Explanation:

Transaction cost is the cost that is typically in money or time format. It is the cost involved in the context of time or money when a decision is made or an agreement has been reached.

So according to the given situation, there is an excessive amount of time or money spent on parties so that it could be reached to an agreement

Therefore it represents the transaction cost

6 0
3 years ago
A local distributor for a national tire company expects to sell approximately 9,530 tires of a certain size and tread design nex
Dahasolnce [82]

Answer:

the economic order quantity is 313 units

Explanation:

The computation of the economic order quantity is shown below:

= sqrt( 2 ×annual demand × ordering cost)  (carrying cost)

= sqrt(2 × 95,30 × $72) ÷ $14

= 313 units

hence, the economic order quantity is 313 units

The same should be considered and relevant

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3 years ago
What is the National Labor Relations Board responsible for?
Alexxandr [17]

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