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fredd [130]
3 years ago
5

"In 2020, a customer buys a 3% U.S. Government bond maturing in 2024 at 102. The customer elects to amortize the bond premium fo

r tax purposes. If the bond is sold after 2 years, its cost basis at that time is:"
Business
1 answer:
Talja [164]3 years ago
7 0

Answer: A. 101

Explanation:

Amortization is done on the premium of the bond if elected to be done by the owner.

Bonds at par are worth 100 so a 102 bond has a premium of 2.

If amortized, this premium will have to be amortized over the period till maturity which in this case is 4 years.

Amortization per year = 2 points / 4 years

= 0.5

In 2 years the amortization would therefore be 1 point.

Cost basis of Bond = 102 - 1

= 101

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A local theater company sells 1,500 season ticket packages at a price of $250 per package. The first show in the 10-show season
swat32

Answer:

Dr cash    $375,000

Cr unearned revenue      $375,000

Dr unearned revenue     $37,500

Cr revenue                                    $37,500

Explanation:

The total amount realized from the sale of tickets is  $375,000($250*1500)

However,the cash proceeds should be debited to cash while it is also credited to unearned revenue

The revenue from fulfilling the performance obligation=1/10*$375,000=$37,500

The $37,500 is debited to unearned revenue and credited to sales revenue as that amount has now been earned

4 0
3 years ago
According to the circular flow model, which of the following is notprovided by consumers?
andreev551 [17]

consumers don’t provide land

5 0
3 years ago
How experiences will help in picking a career?
alexdok [17]

Answer:

well to be honest the more you are focused and stuff and get used to like any  subject that can help you in the near future.

Explanation:

3 0
3 years ago
Read 2 more answers
Globalization is:
Karolina [17]

Answer:

d) making HR planning more critical and complex.

Explanation:

Globalization refers to the way of interacting with different people around the world in order to get healthy relationship for business purpose. Communication technologies become a helping hand to make globalization so easy and efficient.

Increase Globalization increase the practice of human Resource, in order to maintain the workforce in a more systematic way thus globalization make human resource planning more complex.

5 0
4 years ago
Daily demand for newspapers for the last 10 days has been as follows: 12, 13, 16, 15, 12, 18, 14, 12, 13, 15 (listed from oldest
katrin [286]

Answer:

The correct option is E,14

Explanation:

In using the two-day moving average to forecast for the next day sales, the previous two days sales are taken , summed to up and finally averaged(that is divided by 2)

Next day forecast=sum of previous two days sales figures/number of days

sum of previous two days  forecast=13+15=28

since the number of the days is 2 ,the 8 is divided by 2,28/2=14

Ultimately the next day forecast sales figure is 14 newspapers

Option A is wrong that is just considering of the two previous day, the same thing applies to option B.

Option C is the sum of previous two days sales without being divided

5 0
3 years ago
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