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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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The utility created by making a product available at a location where customers wish to purchase it is called _________ utility
Vaselesa [24]
Place utility is created by making a product available at a location where customers wish to purchase it.
6 0
3 years ago
Brianna was a veteran manager and had been with the company for several years when she got promoted to the​ company's flagship o
Kitty [74]

Answer:

In the restaurant business, self inspections can help you ensure that the food is always safe for your customers (better quality food) , lower the overall costs of the restaurant and helps to increase your reputation (a clean restaurant is always seen as a better restaurant).

Self inspection doesn't mean that the manager herself has to carry out the inspection, another employee can. Self inspection refers to making sure you comply with all regulations without having an inspector come and evaluate your restaurant. Self inspections will help the restaurant get higher inspection scores, and that was one of Brianna's major accomplishments.

8 0
3 years ago
You are looking at three different job options, one in Pennsylvania, one in Texas, and one in New York. The offers are as follow
tamaranim1 [39]

Answer:

Texas will be a better option as the net pay after income tax is higher than the other cities.

Explanation:

To consider the after-tax wages we must subtract the income taxes from the salaries:

Pennsylvania after tax income: 62,000 x (1-3.07%) = 60,096.6

Texas after tax income:                                                 64,000

New York after tax income:   68,000 x ( 1 - 6.85%) =  63,342

5 0
3 years ago
For the current year, Klay Corporation reports the following information:
DerKrebs [107]

Answer:

The company’s cash flows from operating activities was a cash inflow of $5,000

Explanation:

Cash at the end of the year = Cash at the beginning of the year + Net cash inflows from investing activities + Net cash inflows from financing activities + Net cash inflows from operating activities

Therefore,

Net cash inflows from operating activities = Cash at the beginning of the year + Net cash inflows from investing activities + Net cash inflows from financing activities - Cash at the end of the year = $340,000 + $40,000 + $45,000 - $420,000 = $5,000 >0

The company’s cash flows from operating activities was a cash inflow of $5,000

7 0
3 years ago
Read 2 more answers
Bacchus Enterprises has $12B in book value of common stock selling at a book to market rate of 1.35 and a beta of 1.5. The combi
goldfiish [28.3K]

Answer: 16.3%

Explanation:

Given the details in the question, the cost of preferred capital can be calculated using the CAPM method.

Cost of preferred stock using the Capital Asset Pricing Model is:

= Risk free rate + Beta * ( Market return - Risk free rate)

= 4% + 1.23 * (14% - 4%)

= 16.3%

7 0
3 years ago
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