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kodGreya [7K]
3 years ago
13

A corporation issues $92,000, 8%, 5-year bonds on January 1, for $96,140. Interest is paid semiannually on January 1 and July 1.

If the corporation uses the straight-line method of amortization of bond premium, determine the amount of bond interest expense to be recognized on July 1.
Business
1 answer:
PilotLPTM [1.2K]3 years ago
5 0

Answer:

$3,266

Explanation:

First we must calculate the total amount received as bond premium:

$96,140 - $92,000 = $4,140

This should be amortized over 10 periods (= 5 years x 2 semiannual payments), so we must amortize $414 per period.

The coupon that the company pays = $92,000 x 8% x 1/2 = $3,680

So the interest to be recognized is = $3,680 - $414 = $3,266

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Answer:

D. speed money.

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Speed money differs from bribery because the end result is something that will be done with or without the speed money, so it is given to speed the process along.

Sometimes speed money is obligatory. To show it was payed legally documentation should be done.

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Explanation:

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8 0
2 years ago
Bond Valuation and Changes in Maturity and Required Returns Suppose Hillard Manufacturing sold an issue of bonds with a 10-year
g100num [7]

Answer:

It will be sold at $1,186.71

Explanation:

We will calculate the present value of the cuopon payment and the maturity at the new market rate of 7%

<u>The coupon payment will be calcualte as the PV of ordinary annuity</u>

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C $50 (1,000 x 10%/2 as there are 2 payment per year)

time    16 (8 years x 2 payment per year)

rate     0.035 (7% rate / 2 payment per year)

50 \times \frac{1-(1+0.035)^{-16} }{0.035} = PV\\

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<u>The maturity will be calculate as the PV of a lump sum</u>

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  1,000.00

time         8 years

rate  0.07

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6 0
3 years ago
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blondinia [14]

Answer:

the answer is a market segment

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on may 1, there were 4 inventory items that cost $30 each. on may 5, 2 items were purchased for $35 each. given one item from th
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Specific identification is just one method in inventory costing.  Others are <em>Last-in, First-out (LIFO), First-in, First-out (FIFO), and Weighted-Average Cost Methods.</em>

Thus, the inventory method that will produce the cost of goods sold under this scenario is the specific identification method.

Learn more: brainly.com/question/17204604

5 0
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