1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
uranmaximum [27]
3 years ago
8

Brooks Company received proceeds of $188500 on 10-year, 8% bonds issued on January 1, 2018. The bonds had a face value of $20000

0, pay interest annually on January 1, and have a call price of 101. Brooks uses the straight-line method of amortization. Brooks Company decided to redeem the bonds on January 1, 2020. What amount of gain or loss would Brooks report on its 2020 income statement? $9200 gain $11200 gain $11200 loss $9200 loss
Business
1 answer:
Andre45 [30]3 years ago
4 0

Answer:

The correct answer to the following question will be "$11200 loss".

Explanation:

The given call price = 101

If we void the bond or we'll have to compensate,

⇒  \frac{200000\times 101}{100}

⇒  $202000

So that we will invite loss of $2000

Bonds are often issued approved discount with,

⇒ 200000-188500

⇒ $11500

But bonds were authorized in January 2018 and most are resurrected on January 2017 so we'll have to amortize discount on bonds for 2 years

Hence amortized, now,

⇒ \frac{11500}{10}

⇒ $1150 \ per \ year

Hence, discount on bond measure pending amortization,

⇒ 11500-1150-1150

⇒ $9200

Now, Total loss:

⇒ 9200+2000

⇒ $11200

So that Option C seems to be a right answer.

You might be interested in
How do your clothing preferences differ from those of your
Trava [24]

Answer:

Is what you like different from other people?

Explanation:

The are asking a personal question. "How do your clothing preferences differ from those of your friends?" do you and your friends have the same style or are you different.

8 0
3 years ago
What is a food technologist
Kay [80]

Answer:

Food technologists are responsible for the safe and efficient development, modification and manufacture of food products and processes.

Explanation:

6 0
3 years ago
Read 2 more answers
What is the best advice for negotiating a business deal in a cross-cultural setting? avoid a win/win outcome. conduct transactio
DerKrebs [107]

In this case, you would want to avoid a win-lose situation.

1. You would want a win-win (where both parties feel as though they are gaining something from the transaction).

2. You can never go into an international negotiation with the same mentality as you would for in the US. Every culture is different and you should be aware of those differences.

3. You should not move too quickly between subjects. You should always ensure all parties understand and agree, which may take time.

7 0
3 years ago
Your company buys a car, and its value goes down over time. What is that process called?
kozerog [31]
The correct answer would be B. Depreciation
4 0
3 years ago
Read 2 more answers
Suppose the city of Austin, TX chooses to regulate the number of street vendors operating near the University of Texas by requir
Dmitrij [34]

Answer:

economic rent of $65,000

Explanation:

Economic rent is the amount of money paid in excess to a factor of production in excess of what is socially optimum

Economic rent = $150,000 - $85,000 = $65,000

Accounting profit= total revenue - explicit cost

Total revenue =price x quantity sold  

Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials

Economic profit = accounting profit - implicit cost

Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives

Without the regulation, economic profit would be driven to zero.

8 0
3 years ago
Other questions:
  • Which of the following is NOT one of the four characteristics of IPOs that puzzle financial economists? Select one: a. The long-
    14·1 answer
  • The residents of Vegopia spend all of their income on cauliflower, broccoli, and carrots. In 2016, they spend a total of $250 fo
    8·1 answer
  • Dextra Computing sells merchandise for $15,000 cash on September 30 (cost of merchandise is $12,000). The sales tax law requires
    15·1 answer
  • The total factory overhead for Bardot Marine Company is budgeted for the year at $1,760,850, divided into four activities: fabri
    8·1 answer
  • An economic system that operates mainly on private transactions where firms are free to make their own production, distribution
    5·1 answer
  • What must be done if a transaction increases the left side of the accounting equation?
    10·2 answers
  • The Fed is the most independent of all U.S. government agencies. What is the main difference between it and the other government
    15·1 answer
  • Computer user support is another name for:
    9·2 answers
  • Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases and indicate the ending balan
    9·1 answer
  • On the basis of the information and assuming trade occurs between the three states, we can expect: Group of answer choices Texas
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!