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ololo11 [35]
3 years ago
11

On January 1, 2019, Ola Company paid $388,900 for a $400,000 face value 3% corporate bond yielding 4%, interest paid annually on

December 31, and classified it as held-to-maturity. Ola's reporting year ends December 31. On its 2019 income statement, Ola reports interest revenue on the corporate bond of: A. $12,000 B. $15,556 C. $11,667 D. $16,000
Business
1 answer:
shutvik [7]3 years ago
8 0

Answer:

B. $15,556

Explanation:

As given in the question

Face value of bond = $400,000

Carrying value of bond = $388,900

Discount from par value = $11,100

Coupon rate = 3%

Bond yielding rate = 4%

Interest revenue for the year = Carrying value of bond x Bond yielding rate

Interest revenue for the year = 388,900 x 4%

Interest revenue for the year = $15,556

The correct option is B. $15,556.

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Ocean sediment cores provide a climate record for the past ________ years.
MrMuchimi

Ocean sediment core provides a climate record of the past 70 million years.

1880 is the reliable global record which we can say the climate began. Proxies(climate) helps the scientists to determine the climatic patterns even before starting record-keeping.

Some examples of proxies are sub-fossil pollen, lake and ocean sediments, tree rings, and ice cores. Climatic of the time influenced the growth rate of proxies material. It is from proxies where we can recover quantities of particular isotopes from climatic changes.

The combination of proxies can produce temperature reconstruction which is longer the instrumental temperature.

5 0
3 years ago
Read 2 more answers
Joe Jenkins, the owner of Jenkins Manufacturing, is considering whether to produce a new product. Joe will be selling the produc
Paul [167]

Answer:

Jenkins Manufacturing

Joe should produce using the new equipment.

Explanation:

a) Costs incurred using the old equipment:

Variable costs = $45,000 ($50 x 900)

Fixed costs = $40,000

Total costs = $85,000

Operating Loss = $22,000 ($63,000 - 85,000)

b) Costs incurred using the new equipment:

Variable costs = $22,500 ($25 x 900)

Fixed costs = $60,000

Total costs = $82,500

Operating Loss = $19,500 ($63,000 - 82,500)

Production using the new equipment would reduce the operating loss by $2,500.

7 0
3 years ago
The McMillan Development Corporation is in the preliminary stages of building a commercial office development. They have receive
solong [7]

Answer:

D. Both B and C

Explanation:

Based on the information provided within the question it can be said that you must go to The Building Codes  and Building Officials Conference of America. This is where every company must go in order receive the guidelines of the materials that are approved by the government for all development procedures including construction, electrical wiring etc.

4 0
3 years ago
Veneer Company has two service departments and two producing departments. The number of employees in each department is: Personn
Vadim26 [7]

Answer:

$13,532 .00

Explanation:

The cost allocation is usually based on a measurable factor such as area occupied, number of students etc. The more the measurable factor related to a unit/department, the more the cost assigned to the departments on the basis of the size of the measurable value.

Total number of employees

= 640

the amount of cost allocated to Department B under the direct method would be

= 199/640 * $43,520

= $13,532

3 0
3 years ago
a 17-year annuity pays $1,100 per month, and payments are made at the end of each month. The interest rate is 16 percent compoun
zzz [600]

Answer:

The present value of the annuity is $73,091.50

Explanation:

Use the following formula to calculate the present value of the annuity

Present value of annuity = ( Annuity Payment x Annuity factor for first 6 years ) + [ ( Annuity Payment x Annuity factor for after 6 years ) x Present value factor  for 6 years ]

Where

Annuity Payment = $1,000

Annuity factor for first 6 years = 1 - ( 1 + 16%/12 )^-(6x12) / 16%/12 = 46.10028344

Annuity factor for after 6 years = 1 - ( 1 + 13%/12 )^-((17-6)x12) / 13%/12 = 70.0471029820

Present value factor for 6 years = ( 1 + 16%/12)^-(6x12) = 0.385329554163

Placing values in the formula

Present value of annuity = ( $1,000 x 46.10028344 ) + [ ( $1,000 x 70.0471029820 ) x 0.385329554163 ]

Present value of annuity = $46,100.28 + $26,991.22

Present value of annuity = $73,091.50

4 0
2 years ago
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