An excise tax is a <span>federal and/or state tax on specific goods like gasoline, tires, airfare, or cigarettes. Excise taxes are most always included in the price of the product.</span>
Answer:
Credit, $60,000
Explanation:
Given,
Market rate = 10%
Face value $60,000 = Principal value.
When the bonds mature, the issuer records its payment of principal with credit to cash in the amount of principal value that is $60,000 because the bondholder will pay the principal with interest.
Therefore,
Bondholder will pay the $60,000 issued amount as principal because there is an additional interest amount needs to be paid.
It is credit because it is matured on the date of cash payment.
Answer: <em>(C.) $2,005</em>
Explanation:
Given :
Money Co. made a cash outflow of $194,000 for the $200,000 loan Money gave to Home Co.
The book value of the loan is $194,000.
The stated rate is 11%.
Hence they will receive an effective interest rate of 12.4% on cash outflow.
∴
Income from the loan = Book value × Effective interest rate × No. of months of the year
= $194,000 × 0.124 × 
= $2,004.67
1. Choice (a) is correct. In a real-life labor union strikes, it usually begins with a notice of strike to be sent to an employer within 60 days known as the cooling-off period. Then, labor unions' strikes begin. If they feel that they are ignored by the employer, then picketing happens. Labor unions carry signs and other rally paraphernalia in the premises of the employer informing the public about their sentiments towards the employer. In this case, the employer will ask the labor union to reach an agreement through collective bargaining agreement.
2. Choice (a) is correct. The management has three tools to use in case of disagreement. These are an injunction, lockout, and hiring replacement workers. An injunction is a judicial order telling the person from doing so. A lockout is a temporary work stoppage or denial of employment. Hiring replacement workers simply mean looking for another competent worker that can do the job of the vacated position.
