The answer to this is 1000
Answer:
D. The interest income will be greater in the third year than in the first year.
Answer:
The correct answer is letter "A": an economic downturn that persists for more than two consecutive quarters of the year.
Explanation:
Recessions are economic downturns in an economy characterized by the fall growth for more than two consecutive quarters. The most important indicator that determines the economic downturn is the real Gross Domestic Product (GDP). The National Bureau of Economic Research (NBER) is the entity in charge of calling the recession.
Answer:
Option (B) is correct.
Explanation:
Interest accrued for 6 months (January 1 to July 1):
= $1,000 × 6% × (6 ÷ 12)
= $30
This shall be credited to interest revenue as this is the income of the investor.
Sale value of investment:
= Bond selling price on July 1 + Interest accrued for 6 months
= $1,200 + $30
= $1,230
Gain on sale of investment:
= (Selling price - Purchase price) - Accrued interest
= ($1,230 - $1,000) - $30
= $200
Therefore, the Journal entry for this transaction is as follows:
Cash A/c Dr. $1,230
To debt investments $1,000
To Gain on sale of investment $200
To Interest revenue $30
(To record the cash proceeds at the time the bond is sold)
Many companies avoid unrelated diversification as a general business rule because of the lack of synergy that exists. When you have related diversity, you can more easily integrate your company brand, philosophies, resources, and partnerships to take full advantage.
<h3>Why would a company use unrelated diversification?</h3>
The benefits of unrelated diversification are rooted in two conditions:
(1) increased efficiency in cash management and in the allocation of investment capital and
(2) the capability to call on profitable, low-growth businesses to provide the cash flow for high-growth businesses that require significant infusions of cash.
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