Answer:
$45,000
Explanation:
Calculation to determine by how much should the bond discount be reduced for the six months ended December 31, 202
First step
Semiannual interest paid on 31.12.2021 = $9,000,000*8%*6/12
Semiannual interest paid on 31.12.2021= $360,000
Second step
Effective interest expense on 31.12.2021 = $8,100,000 * 10% * 6/12
Effective interest expense on 31.12.2021= $405,000
Last step
Bond discount to be reduced for 6 months ended 31.12.2021 = $405,000 - $360,000
Bond discount to be reduced for 6 months ended 31.12.2021=$45,000
Therefore by how much should the bond discount be reduced for the six months ended December 31, 202 will be $45,000
Answer:
Method of Life cycle analogy
Explanation:
Method of life cycle analogy is the technique of the qualitative forecasting, which attempts to recognize the demand levels and the time frames for the life cycle stages of the new service or the product, and the stages are decline, introduction, maturity and growth.
These forecast of individual are then added to got the overall forecast.
Therefore, in order to develop the breakthrough product. the good selection of the technique would be the method of the life cycle analogy.
In the formula Y = a + b X, X represents the estimated total amount of the allocation base.
What is total amount of allocation base?
Cost accounting assigns overhead expenses using an allocation base. A quantity, such as the number of machine hours utilized, kWh consumed, or occupied square footage, might serve as an allocation base.
What are overhead expenses?
Rent, insurance, and utility charges are examples of overhead expenditures that go into running a business. Operating costs are necessary for the firm to function and cannot be avoided. Regular reviews of overhead costs are necessary to improve profitability.
What is cost accounting?
Assigning costs to cost items, which often comprise a corporation's goods, services, and other activities involving the company, is the process of cost accounting. Cost accounting is beneficial since it can show a company where its money is going, how much it makes, and where it is losing money.
Learn more about cost accounting: brainly.com/question/14758675
#SPJ4
Answer:
the bond interest expense is $114,100
Explanation:
The computation of the bond interest expense is shown below:
Cash interest payable for 3 months 122,250 ($8,150,000 × 6% × 3 ÷ 12)
Less; AMortized premium for 3 months $8,150 ($8,150,000 × 4% ÷ 10 × 3 ÷ 12)
BOnd interest expense $114,100
Hence, the bond interest expense is $114,100
Answer:
The opportunity costs may be too high, and the motel may not yield high enough returns to offset them.
Opportunity costs is the money you do not earn for choosing one alternative investment or action over another. In this case, the cost of the land is probably very high and the motel (or any other business) might not be making as much money from their regular operations as they could from selling the land and using that money for another investment.
A business will shut down when their economic costs exceed their revenue.
