How many elective courses do you have to take to get a bachelors degree

On January 1, 2018, Plummer Company issued $250,000 of 4%, five-year bonds payable at 102. Plummer Company has extra cash an

Anna [14]

Answer:

1. Carrying amount = $250,000

2. Cash paid to retire bond = $225,000

3. Gain on the retirement = $25,000

Explanation:

1. What is Plummer Company's carrying amount of the bonds payable on the retirement date?

Carrying amount of a bond payable on the retirement date is its par value amount.

Therefore, Plummer Company's carrying amount of the bonds payable on the retirement date is $100 par value for 2,500 units with a total carrying amount of $250,000.

2. How much cash must Plummer Company pay to retire the bondspayable?

Units of bond = $250,000/$100 = 2,500 units.

Since Plummer pays the market price of $90 to retire the bonds, cash amount Plummer Company must pay to retire the bonds payable can be calculated as follows:

Cash paid to retire bonds = 25,000 * $90 = $225,000

3.Compute Plummer Company's gain or loss on the retirement of the bonds payable.

Gain (loss) = Carrying amount - Cash paid on retirement = $250,000 - $225,000 = $25,000

7 0

3 years ago

A company enters into a short futures contract to sell 5000 bushels of wheat for 571'4 cents per bushel. The initial margin is $

zalisa [80]

Answer:

563.4 cents

Explanation:

A margin call occurs when the margin of an investment falls bellow the maintenance margin.

In this problem, the production costs for 5,000 bushels are given by:

$Margin = Price*units -Cost\\\$1,500=\$5.714*5000 - Cost\\Cost = \$27,070$

The price per bushel that yields a margin of $1,100 is:

$\$1,100=Price*5,000- \$27,070\\Price =\$5.634=563.4\ cents$

You will receive a margin call at a price of 563.4 cents per bushel.

4 0

4 years ago

Which of the following statements about the relationship between the financial market and the

BigorU [14]

Answer:

C

Explanation:

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7 0

3 years ago

A(n) ______ indicates the maximum quantity of a product that may be brought into a country during a specific time period:

mash [69]

What indicates the maximum quantity of a product that may be brought into a country in a specific period is a quota.

<h3>What does quota mean?</h3>

A quota is the maximum monetary value of a good and service that can be imported into a country for a specific period.

The purpose of a quota is to restrict the amount of import into a country so as to boost local production of the good for which the quota is placed. Quotas also limit foreign competition.

To learn more about imports, please check: brainly.com/question/26497713

5 0

3 years ago

Imagine a linear demand curve graphed with Quantity on the x-axis and Price on the y-axis. We know the middle of the curve is th

Murrr4er [49]

Answer:

A. That's the point where total revenue is maximized

Explanation:

Demand Curve is a downward sloping curve representing inverse relationship between price & quantity demanded.

Elasticity of Demand is the responsiveness of quantity demanded to price change. It can be measured geometrically on a demand curve point by :

Demand curve segment below the point / Demand curve segment above the point.

This way the elasticity keeps on decreasing as we move downwards on the demand curve [Ed=∞ to Ed >1 to Ed = 1 to Ed < 1 to Ed = 0] i.e [from perfectly elastic to elastic to unitary elastic to inelastic to perfectly inelastic demand].

If Demand is Elastic [Ed >1] : There is negative relationship between price and Total Revenue. This point is on the upper segment of demand curve as per geometric method, P- TR negative relationship implies that TR can be increased by decreasing Price.

If Demand is Inelastic [Ed <1] : There is positive relationship between price &total revenue. This point is on the lower segment of demand curve as per geometric method, P-TR positive relationship implies that TR can be increased by increasing price.

So: The best Total Revenue Maximising point is on the middle of demand curve where demand is unitary elastic [Ed=1] - as any other deviation from this point would create an incentive to change price to generate higher revenue.

3 0

3 years ago