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swat32
2 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]2 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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4 0
2 years ago
Read 2 more answers
More companies are posting job advertisements on industry specific sites, because the applicants are usually more qualified.(A)
mote1985 [20]

<u>Answer:</u>

True

<u>Explanation:</u>

Industry specific sites usually consumed/visited by people who has keen interest and caliber in the industry. When posting the jobs on these type of sites, the probability of the company selecting candidates with higher skill set in the related industry tend to get higher as compared to posting it in normal job posting sites. Well you always seek for a person who has better aptitude and better understanding of things. A person belonging from industry will surely be having all these good qualities.

8 0
3 years ago
On January 1, 2020, Shay Company issues $700,000 of 10%, 15-year bonds. The bonds sell for $684,250. Six years later, on January
Leno4ka [110]

Answer:

Discount on bonds issuance = $15750

Explanation:

A bond is issued at a discount when the issue price of the bond is less than the face value of the bond. This usually happens when the coupon rate paid by the bond is less than the market interest rate. To calculate the amount of discount on bonds issuance, we simply deduct the issue price from the face value of the bond. Thus,

Discount on Bonds = Face value - Issue price

As we know the face value of the bonds is $700000 and the issue price is $684250, we can calculate the discount on issuance to be,

Discount on bonds issuance = 700000 - 684250

Discount on bonds issuance = $15750

7 0
3 years ago
1. Which of the following is NOT a reason why employees lose their jobs?
stich3 [128]

Answer:B. Good attendance

Explanation: Employers want their employees to have good attendance, this is a good quality, it is NOT a reason why employees lose their jobs.

4 0
3 years ago
According to SEC independence regulations,
Komok [63]

Answer: Option (b) is correct.

According to Securities and Exchange Commission independence code:   Pre-approval of accountants' work may be in reconciliation with comprehensive policies and transaction rather than categorical.

The Commission’s code, principally through Regulations S-X, focuses on the accomplishment of accountants, counting the autonomy condition for auditors that issue audit filed with Commission.

5 0
3 years ago
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