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3 years ago

New corporate bond issues in excess of $50,000,000 are:________.

Business

1 answer:

tamaranim1 [39]3 years ago

8 0

Answer: C. II and III

Explanation:

Under the Security Act of 1933, new corporate bond issues of such high amounts are not exempt from the Act and so need to be registered with the Securities and Exchange Commission (SEC).

Also, as the amount exceeds $50,000,000, the issue is subject to the Trust Indenture Act of 1939 which states that the issuer should include certain protective provisions that are recommended by the SEC in order to protect bondholders. The adherence to these covenants will then be monitored by an independent trustee that is to be appointed by the Issuer.

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Krol Corporation distributed marketable securities in redemption of its stock in a complete liquidation. On the date of distribu

Varvara68 [4.7K]

Answer:

The answer is 50.000 dollars

Explanation:

When a corporation completely liquidates, the corporation wil recognize a gain or loss as if the property were sold at fair market value.

Amount realizes as if sold $150,000

Less: Adjusted basis $ 100,000.

Equals: $50,000, which is the recognized capital gain.

8 0

3 years ago

g Jana just found out that she is going to receive an end-of-year bonus of $32,200. She is in the 35 percent marginal tax brac

maria [59]

Answer:

Jana just found out that she is going to receive an end-of-year bonus of $32,200. She is in the 35 percent marginal tax bracket. Calculate her income tax on this bonus.

tax liability = $32,200 x 35% = $11,270

Now assume that instead of receiving a bonus, Jana receives the $32,200 as a long-term capital gain. What will be her tax?

tax liability = $32,200 x 15% = $4,830

Which form of compensation offers Jana the best after-tax return?

if the bonus is taxed as a long term capital gain, she will páy less than half the taxes, so it is the best option for her

Would your calculation be different if the gain was short-term rather than long-term?

Short term capital gains are taxed at the same rate as ordinary income, so the difference between the bonus being a long vs short term capital gain is very significant to Jana.

8 0

3 years ago

All of the following are factors of production EXCEPT: A. capital) B. labor) C. currency) D. land)

daser333 [38]

capital production

pls mark brainliest

5 0

3 years ago

Read 2 more answers

Although the Chen Company’s milling machine is old, it is still in relatively good working order and would last for another 10 y

SCORPION-xisa [38]

Keeping the appropriate cash flow in the cash flow register, using a financial calculator, NPV should be calculated for taking the decision.

Answer: According to the NPV calculated, Chen should buy a new machine.

<u>Explanation:</u>

Cash outflow = $40000

Increase in annual after-tax cash flows : CF = $9000

Place the cash flow on a time line:

0 1 2 10

I 10 I I . . . I

-110000 19000 19000 19000

With a financial calculator, input the appropriate cash flow into the cash flow register, input I/YR = 10, and then solve for NPV. The answer for NPV is $6746.78.

Thus, Chen should buy a new machine.

5 0

3 years ago

On January 1, 2022, Concord Company issued $2,800,000 face value, 7%, 10-year bonds at $3,006,070. This price resulted in a 6% e

yaroslaw [1]

Answer:

Concord Company

Journal Entries:

i. The issuance of the bonds on January 1, 2022:

Debit Cash $3,006,070

Credit Bonds Payable $2,800,000

Credit Bonds Premium $206,070

To record the issuance of bonds at premium.

ii. Accrual of interest and amortization of the premium on December 31, 2022:

Debit Interest expense $180,364

Debit Premium Amortization $15,636

Credit Interest Payable $196,000

To accrue interest and record premium amortization.

iii. The payment of interest on January 1, 2023:

Debit Interest Payable $196,000

Credit Cash $196,000

To record payment of interest.

iv. Accrual of interest and amortization of the premium on December 31, 2023:

Debit Interest expense $179,426

Debit Premium Amortization $16,574

Credit Interest Payable $196,000

To accrue interest and record premium amortization.

Explanation:

a) Data and Calculations:

January 1, 2022:

Face value of bonds issued = $2,800,000

Proceeds from the bonds issue 3,006,070

Bonds Premium = $206,070

Coupon interest rate = 7%

Effective interest rate = 6%

Bonds maturity period = 10 years

Payment of annual interest = each January 1

December 31, 2022:

Interest expense = $180,364 ($3,006,070 * 6%)

Cash payment = $196,000 ($2,800,000 * 7%)

Amortization of premium $15,636 ($196,000 - $180,364)

Bonds' fair value = $2,990,434 ($3,006,070 - $15,636)

December 31, 2023:

Interest expense = $179,426 ($2,990,434 * 6%)

Cash payment = $196,000 ($2,800,000 * 7%)

Amortization of premium $16,574 ($196,000 - $179,426)

Bonds' fair value = $2,973,860 ($2,990,434 - $16,574)

Analysis:

i. The issuance of the bonds on January 1, 2022:

Cash $3,006,070 Bonds Payable $2,800,000 Bonds Premium $206,070

ii. Accrual of interest and amortization of the premium on December 31, 2022:

Interest expense $180,364 Premium Amortization $15,636 Interest Payable $196,000

iii. The payment of interest on January 1, 2023:

Interest Payable $196,000 Cash $196,000

iv. Accrual of interest and amortization of the premium on December 31, 2023:

Interest expense $179,426 Premium Amortization $16,574 Interest Payable $196,000

3 0

3 years ago