Answer:
Journal Entry
01 July Debit Investment $240 million Credit Bank $200 million Credit Discount on investment $40 million
31 Dec Debit Bank $7,2 Million Debit Discount on Bond $0.8 million Credit Interest Income $8 million
Debit Fair Value loss on investment $30 million Credit Investment $30 million
Explanation:
Interest is received semiannually
6%/2 = 3%
interest = $240 million * 3% =7,200,000
8%/2 = 4%
Interest market $200 million * 4% =8,000,000
Fair value loss = 240 million - 210 million
= 30 million loss because cost is greater than fair value
Answer:
rent
Explanation:
The rent expense will be difficult to revise. Usually, the rent amount is contained in a tenancy agreement signed by both the landlord and the tenant. The rent amount does not change until the lease or tenancy agreement expires. Changing the rent amount would require the landlord's consent.
Due to the above reasons, rent is classified as a fixed cost. It remains constant in the short run.
Answer: Statement A
Explanation: Convertible bonds is a type of bond security which gives its holder the right to convert each bond to a specified number of shares. These are hybrid securities having features of both equity and debt.
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Warrants are securities that give their holder the right to purchase the common shares of the company at a specified price and before a certain time period.
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Thus, from the above explanation we can conclude that statement A is correct.
Answer:
franchising
Explanation:
According to my research on different business strategies, I can say that based on the information provided within the question Entrepreneurs purchasing such a license are engaging in franchising. This is when the owner of a brand licenses the name to a specific individual so that individual can open up his/her own store using that name and reputation. These licenses come with certain requirements placed by the owner of the brand that the buyer must follow.
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Answer:
Earthquakes happen when the boundaries of the Earth's tectonic plates bump and slide past one another; sometimes, they get stuck on jagged edges and cause earthquakes once they are released. These earthquakes are always followed by aftershocks starting from the same epicenter.
Explanation:
The Earth's four main layers are the inner core, outer core, mantle and crust. The crust and the mantle make up a "skin" on the outside of the planet, but is not made of a single piece. The pieces of the mantle and crust are called tectonic plates with the outer edges of each of them called plate boundaries. The section where two plates meet and move is called a fault. As each of the plate boundaries get caught on each other, the rest of the tectonic plate keeps moving and energy begins to store at the point of friction.
When the energy overcomes the friction caused, all of the energy is released and radiates from the epicenter. These waves of energy are called seismic waves and ripple like water on a pond when a stone is dropped in. They often reach the surface of the planet where everything starts to shake. This is why cities or towns that are located near faults are more likely to feel earthquakes than those in the center of a tectonic plate.