Answer:
Please see the answer below:
Explanation:
Debit: Depreciation Expense $2,750
Credit: Accumulated Depreciation $2,750
To record adjusting entry for Depreciation Expense of Equipment.
- For T-accounts the entries will made as above, <em>Depreciation T-Account</em> will be Debited with $2750 and <em>Accumulated Depreciation T-Account</em> will be credited with $2750.
Balance Sheet as of December 31
<em>Fixed Assets:</em> $ $
Equipment 22,000
Less: Accumulated Depreciation (2,750)
Net Cost of Equipment as of Dec 31 19,250
Answer:
Moral obligation bond
Explanation:
Moral obligation bond is defined as a revenue bond that is issued by a municipality or by some other government body.
The benefits of moral obligation bonds are tax exemption and a moral pledge that there will be no default on the bond.
Usually a reserve fund is established in case the issuing body is unable to meet its debt obligations.
In this scenario the bond is issued with a covenant that states "if revenue collections are insufficient, the state legislature has the authority, but not the obligation, to make an annual apportionment of funds necessary to meet debt service requirements."
Answer:
Explanation:
From the question, we have the followed parameters;
The Face value=1,000 United States of America Dollar($); yield to maturity= fifteen(15) years; The bond = 7.125 percent (annual) coupon rate; payment for last year = $974.24.
First thing to do is to calculate the market value after one percent extra= 1%+7.125%= 8.125%
Next, we need to calculate the present value of 14 year coupon of 71.25 USD = 573.00+ 1,000/1+ 0.8125^14
=>573.00+322.15
= 895.15
Therefore, the price of the bond today is $ 895.15.
So, the interest rate will be undefined, we'll name the variable n.
4n(3000) = 510
(The 4 in the equation represents 4 years)
Multiply:
12000n = 510
We'll divide 510 by 12000:
n = 0.0425
The annual interest rate is 4.25%
Answer: The correct answer is "D. A shareholder's S corporation stock basis will increase when the shareholder acts as guarantor on a corporate indebtedness.".
Explanation: The statement D. A shareholder's S corporation stock basis will increase when the shareholder acts as guarantor on a corporate indebtedness. is <u>FALSE</u> because a shareholder's S corporation stock basis does not increase when the shareholder acts as guarantor on a corporate indebtedness.