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Brums [2.3K]
3 years ago
11

Theresa, a cash basis taxpayer, purchased a bond on July 1, 2013, for $10,000, plus $400 of accrued interest. The bond paid $800

of interest each December 31. On March 31, 2017, she sold the bond for $9,800, which included $200 of accrued interest.a. Theresa has $200 interest income and a $400 loss from the bond in 2017.b. Theresa has $200 interest income and a $200 gain from the bond in 2017.c. Theresa has a $100 loss from the sale of the bond and no interest income.d. Theresa's loss on the sale of the bond is $600.e. None of these.
Business
1 answer:
Radda [10]3 years ago
3 0

Answer:

a. Theresa has $200 interest income and a $400 loss from the bond in 2017

Explanation:

Since the bond was sold for $9,800 which includes the $200 accrued interest that means it reflects the interest income of $200

And, if we exclude the interest income from the sale value of bond, then the value is $9,600 and its purchase price without considering the accrued interest is $10,000. So, after comparing the purchase price and the sale price the loss of $400 would be determined

$9,600 - $10,000 = $(400)

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g The following information relates to XYZ Company: January 1, 2023: Liabilities ............... $137,000 Retained earnings ....
Georgia [21]

Answer:

The common stock at January 1, 2023 is \$ 77,000

Explanation:

Total equity                                \$258,000

Total Liabilities                           \$123,000

Total asset as on December     \$381,000

Learn more about common stock, refer :

brainly.com/question/11453024

5 0
2 years ago
The lower the user's switching costs:
JulijaS [17]

Answer:

more intense the competitive pressures posed by substitute products.

Explanation:

The lower the user's switching costs: the more intense the competitive pressures posed by substitute products.

Switching costs can be defined as the cost of a consumer switching from a product to a substitute good.

Therefore when such switching costs are low, it will be easier to switch from one product to another, implying that the competitive pressure from substitute goods are higher.

8 0
3 years ago
Read 2 more answers
It is recommended that you create a budget for each (a)month (b)day (c)week (d)year
____ [38]
Depending on when you get paid.
If you get paid every week then weekly. 
Most of the time I would say to make a budget weekly just because it is easier to keep track of. 
so (C) 
8 0
2 years ago
Read 2 more answers
A company has outstanding 20-year noncallable bonds with a face value of $1000, and 11% annual coupon, and a market price of $1,
Helen [10]

Answer:

8% and 4.8%

Explanation:

In this question, we use the Rate formula which is shown in the spreadsheet.  

The NPER represents the time period.  

Given that,  

Present value = $1,294.54

Future value or Face value = $1,000  

PMT = 1,000 × 11% = $110

NPER = 20 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after solving this,  

1. The pretax cost of debt is 8%

2. And, the after tax cost of debt would be

= Pretax cost of debt × ( 1 - tax rate)

= 8% × ( 1 - 0.40)

= 4.8%

6 0
3 years ago
If demand increased by 100 units at each price level, and the government set a price ceiling of $40, then there will be
mel-nik [20]

Answer:

no surplus or shortage

Explanation:

Equilibrium price is the price at which quantity demand equal quantity supplied. Above equilibrium price there is a surplus - quantity supplied exceeds quantity demanded.

Below equilibrium price there is a shortage - quantity demanded exceeds quantity supplied

If demamd increases by 100, new equilibrium is 40

Thus, ceiling price equal equilibrium

Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.

Effects of a binding price ceiling

It leads to shortages

it leads to the development of black markets

it prevents producers from raising price beyond a certain price

It lowers the price consumers pay for a product. This increases consumer surplus

4 0
2 years ago
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