1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
igor_vitrenko [27]
4 years ago
11

On June 30, 2017, Prouty Co. had outstanding 9%, $5,000,000 face amount, 10-year bonds that pay interest semi-annually on June 3

0 and December 31. The unamortized balance in the bond discount account on June 30, 2017 was $200,000. On June 30, 2017, Prouty acquired all of these bonds at 101 and retired them. What amount of gain or loss would Prouty record on this early extinguishment of debt
Business
1 answer:
xxMikexx [17]4 years ago
6 0

Answer: $250,000 loss

Explanation:

The bonds' net carrying amount is

=($5,000,000 - $200,000)

= $4,800,000.

The loss on extinguishment is

=($5,000,000 X 1.01) - $4,800,000

= $250,000.

You might be interested in
Offering regular customers discounts on products is know as a
Alexxx [7]

Answer:

External customer incentives

Explanation:

External customer incentives are similar to customer incentives. The phrase external distinguishes between internal customers or company employees and other customers who chose to buy the company's products.

Customer incentives are offers given to customers by a company to attract and retain them. Businesses use incentives to convert potential customers into paying clients. Discounts are an example of external customer incentives.  They are used when a business faces competition from similar products by other companies. Business also offer end of the year, anniversary, and other seasonal discounts.

7 0
3 years ago
The management of Madeira Computing is considering the introduction of a wearable electronic device with the functionality of a
krek1111 [17]
600 because 30000/250
5 0
3 years ago
Max worked 48 hours last week. What is his gross pay for the week if his regular hourly pay is 13.50
Illusion [34]
The correct answer is $648
6 0
3 years ago
The maximum distance people are willing to travel for a service is
ladessa [460]

Answer:

Range

Explanation:

Range is the term which is used to describe the maximum distance which the consumers or customers are prepared or willing to travel in order to acquire the goods or to use a service.

It is because at some point, the expense or the inconvenience which will outweigh the requirement of the good.

And there are two types of range, one is small rage and other is large range.

Small range is the range which the people are willing to go only a distance which is short for the everyday consumers services like the pharmacies, grocery. While the large range is the range which will people travel the longer distances for the other services like ball game.

6 0
4 years ago
A company estimates that the appropriate discount rate (i.e., the cost of capital) for Project A, Project B, Project C and Proje
aliina [53]

Answer:

a. Project A requires an up-front expenditure of $1,000,000 and generates a net present value of $3,200.

Explanation:

a.

The company should accept project A because it provides a positive net present value of $3,200 that is the highest among all the projects.

b.

When the IRR of a project is lower than the required rate of return of the project, it will generate the negative net present value because at IRR the net present value of the project will be zero and at a higher rate than IRR it will be negative.

c.

The project with a profitability index of less than 1 generates a negative NPV because the present value of future cash flows is less than the initial cash outflow.

d.

Project D also generates a positive net present value but it is lower than project A. So, after comparing the results we will choose the project with higher NPV.

4 0
3 years ago
Other questions:
  • 1. What common business mistake can cost you everything?
    13·2 answers
  • After asking yourself what you are good at and what you enjoy doing, you will be able to discover:
    5·2 answers
  • The price and quantity determined in a market when the supply equals the demand, the market is in the state of
    13·1 answer
  • Danny "Dimes" Donahue is a neighborhood’s 9-year-old entrepreneur. His most recent venture is selling homemade brownies that he
    6·1 answer
  • What is the primary benefit of activity-based costing? Arbitrary allocations of overhead costs All these are primary benefits of
    6·1 answer
  • Which theory suggests that employees can be motivated by objectives that are specific and challenging but achievable and that ha
    9·1 answer
  • In order to accurately assess the capital structure of a firm, it is necessary to convert its balance sheet figures from histori
    14·1 answer
  • Compute the Cost of Goods Sold for 2016 using the following information: Direct Materials, Jan. 1, 2016$50,000 Work-in-Process,
    11·1 answer
  • Flick Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standar
    6·1 answer
  • 1. Analyze financial statements. 2. Transfer journal entries to ledger 3. Prepare the financial statements. 4. Record transactio
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!