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aleksley [76]
3 years ago
6

A customer buys $100,000 of a new issue 30 year U.S. Government bond at 80. At maturity, the customer will have:

Business
1 answer:
exis [7]3 years ago
3 0

Answer: No capital gain or loss

Explanation:

The bonds were bought at discount but will be redeemed at par. This does not mean that there will be a capital gain because the discount will simply be added back to the value of the bond overtime.

When the bond then gets to maturity, the discount would simply have been added back because the bond is to be redeemed at par. Because the bond was always going to be redeemed at par, the difference in price is not considered a capital gain.

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Starling Company purchased machinery at the beginning of Year 1 at a cost of $86,100. The machinery has an estimated life of fiv
Alja [10]

Answer:  $10,906

Explanation:

Given that,

Purchased machinery at the beginning of Year 1 = $86,100

machinery has an estimated life of five years,

Estimated residual value = $4,305

Accumulated depreciation = $49,077 at the end of Year 2

Year 3 Depreciation expense:

= \frac{Cost\ of\ machinery - Estimated\ residual\ value - Accumulated\ depreciation}{3}

= \frac{86,100 - 4,305 - 49,077}{3}

= $10,906

5 0
3 years ago
Perit Industries has $190,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternat
Wewaii [24]

Answer:

Please see attachment

Explanation:

Please see attachment

3 0
3 years ago
Problem 10A specialty coffeehouse sells Colombian coffee at a fairly steady rate of 280 pounds annually. The beans are purchased
SOVA2 [1]

Answer:

The computations are shown below:

Explanation:

a. The computation of the economic order quantity is shown below:

= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}

= \sqrt{\frac{2\times \text{280}\times \text{\$45}}{\text{\$0.48}}}

= 229 units

The carrying cost is come from

= $2.40 × 20%

b. Time between placement of orders is

= Economic order quantity ÷Annual demand

= 229 ÷ 280

= 0.8179 years

So,

= 0.8179 × 365 days

= 298.53 days

We assume 365 days in a year

c. The average annual cost of ordering cost and carrying cost equals to

= Holding cost + ordering cost

= (Economic order quantity ÷ 2 × Holding cost)  + (Annual demand ÷ Economic order quantity × ordering cost)

= (229 units ÷ 2 × $0.48) + (280 ÷ 229 units × $45)

= $54.96 + $55.02

= $109.98

d)   Now the reorder level is

= Demand × lead time + safety stock

where, Demand equal to

= Expected demand ÷ total number of weeks in a year

= 280 pounds ÷ 52 weeks

= 5.38461

So, the reorder point would be  

=  5.38461 × 3 + $0

= 16.15 pounds

7 0
3 years ago
Which bear is best? Beets. Bears. Battlestar galactica.
Misha Larkins [42]

Answer:

black bear

Explanation:

I've watched the office 10 times

8 0
3 years ago
Read 2 more answers
Harold borrows $20,000 from Alex and signs a note promising to pay Alex this amount plus interest in one year. Alex negotiates t
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Answer:

B)

Explanation:

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