Under these conditions an efficient solution can be reached regardless of the initial assignment of property rights.
Answer:
Explanation:
Overhead allocation:
Unit level = $35,960/5800 * 480 = 2,976
Batch level = 13,052/260 * 27 = 1355.4
Product level = 3,988*40% = 1595.2
Facility level = 45,600/38,000 * 12,000 = 14,400
Total overhead allocated 20,326.6
Answer:
9.25 years
Explanation:
Price of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond. Price of the bond is calculated by following formula:
According to given data
Assuming the Face value of the bond is $1,000
Coupon payment = C = $1,000 x 6.3 = $63 annually = $31.5 semiannually
Current Yield = r = 8.49% / 2 = 4.245% semiannually
Market value = $767.50
Market Value of the Bond = $31.5 x [ ( 1 - ( 1 + 4.425% )^-n ) / 4.425% ] + [ $1,000 / ( 1 + 4.425% )^n ]
Market Value of the Bond = $31.5 x [ ( 1 - ( 1 + 4.425% )^-n ) / 4.425% ] + [ $1,000 / ( 1 + 4.425% )^n ]
n = 18.53 / 2
n = 9.25 years
Answer:
The journal entry to record the issuance of bond is shown as:
Dr Bank $783,845
Cr Bonds payable $700000
Cr Bonds premium $83845
Being issuance of bonds for cash
Subsequently,coupon interest is calculated is on the par value of $700000 at 11% while effective interest of 8% is calculated on $783,845
Explanation:
Upon issuance of the bonds,the receipt of cash of $783,845 is debited to bank account as an increase in asset.
The obligation to redeem the bond on 1 January 2025 is credited to bonds payable at par value of $700000(an increase in liability)
However, cash received is more by $83,845 which is credited to bonds premium account.
<span>The extra $2 that she made beyond the $5 she was willing to sell her T-shirts for represents producer surplus. Producer surplus is defined as the difference between the amount of money the producer is willing to supply versus the amount actually supplied. Because she was willing to sell for $5 but sold for $7 and had an increase in money supplied, this example is one of producer surplus. </span>
