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tino4ka555 [31]
3 years ago
12

On July 1, Year 4, Pell Co. purchased Green Corp. 10-year, 8% bonds with a face amount of $500,000 for $420,000. The bonds are c

lassified as held-to-maturity, mature on June 30, Year 14, and pay interest semiannually on June 30 and December 31. Using the interest method, Pell recorded bond discount amortization of $1,800 for the 6 months ended December 31, Year 4. From this long-term investment, Pell should report Year 4 revenue of
Business
1 answer:
gayaneshka [121]3 years ago
6 0

Answer:

$21,800

Explanation:

The computation of 4-year revenue is as shown below:-

Bond Income of 4th Year = Face amount × Bond × 1 ÷ 2

= $500,000 × 8% × 1 ÷ 2

= $20,000

Interest Revenue = Bond Income + Amount of Discount Amortized

= $20,000 + $1,800

= $21,800

Therefore for computing the interest revenue we simply bond income with the amount of discount amortized.

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Darden Restaurants is expected to pay annual dividends of $1.90 and $2.10 over the next two years,respectively. After that, the
Ainat [17]

Answer:

$13.89

Explanation:

The computation of the value of stock is shown below:

Year Dividend Present value factor at 16% Present value  

1         $1.90                0.862                               $1.64

2        $2.10                 0.743                               $1.56

3        $2.30

Price $14.375             0.743                               $10.68

The price is computed below:

= $2.30 ÷ 16% = $14.375

Total present value $13.89

The present value factor is computed below:

= 1 ÷ (1 + rate) ^ years

For Year 1 = 1 ÷ 1.16^1 = 0.862

For Year 2 = 1 ÷ 1.16^2 = 0.743

7 0
3 years ago
Abril has developed a plan for her team to reach their yearly goal of increased productivity. She has put together a variety of
WARRIOR [948]

Answer:

A presentation.

Explanation:

Presentation can be defined as a process of dispensing information about a particular topic to a group of audience. This type of communication channel helps to inform and inspire individuals about a new idea.

Presentation is used to engage the audience about new projects and strategies that should be carried out to ensure the overall growth of the business.

In the scenario above, Abril needs to use a presentation to communicate to her team the strategies she wants to employ inorder to increase productivity.

6 0
4 years ago
What motivates most entrepreneurs to go into business for themselves? A. Guaranteed health care B. Full liability C. A higher sa
luda_lava [24]
It would be D. The potential for profit
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How did Ray engage in market planning
Igoryamba

Answer:

Ray calculated how much each seat cost to manufacture and set a wholesale price that covered expenses and earned a reasonable profit. After doing so, Ray developed a channel of distribution including wholesalers and retailers to get the theater seats to consumers.

Explanation:

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3 years ago
Completeness is the most important attribute of a business message. select one:
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That would be considered True in most environments
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4 years ago
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