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fredd [130]
2 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]2 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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harry decides to borrow some money from a bank? what type of assignment will harry probably use to secure the loan
Nady [450]

Answer:

A life insurance policy.

Explanation:

An assignment or collateral assignment is a type of guarantee for the lender. the most used is a life insurance policy that will cover the payments of the debt to the lender if Harry fails to pay.

6 0
3 years ago
Suppose that Larimer Company sells a product for $24. Unit costs are as follows:
yanalaym [24]

Answer:

a)

Variable cost per unit=$10.08

Contribution per unit=$13.92

b)

Contribution margin ratio=58%

Variable cost ratio= 42%

c) Break-even units=3,000 units

Explanation:

Variable cost per unit

= 4.98 + 2.10 + 1.00 + 2.00 = $10.08

Variable cost per unit=$10.08

Contribution per unit = Selling price per unit - Variable cost per unit

                                  = 24 - 10.08  =13.92

Contribution per unit=$13.92

b)

Contribution margin ratio=  contribution/selling price= 13.92/24 × 100=58%

Contribution margin ratio=58%

Variable cost ratio = variable cost/selling price= 10.08 /24× 100 = 42%

Variable cost ratio=42%

c)

Break-even units = Total general fixed cost/contribution per unit

                           = (26,500 + 15,260)/  13.92     = 3000 units

Break-even units=3,000 units

3 0
3 years ago
Suppose you read a news article reporting that your local government has denied a request by an entrepreneur to build a new coff
finlep [7]

Answer:

Yes, I would support the denial because rules and regulations apply to everyone, and that includes businesses. Zoning rules exist in real estate to make sure that some areas or neighborhoods are used for certain specific purposes, e.g. residential areas, industrial areas or commercial areas. If those rules regulations didn't exist, it would be a complete mess and anyone could just set a factory besides a condo or a school. Either everyone follows the rules or no one does.

Explanation:

3 0
2 years ago
The stockholders’ equity section of Pretzer Corporation consists of common stock ($10 par) $2,650,000 and retained earnings $532
CaHeK987 [17]

Answer:

A. $2,650,000 $3,312,500

B.$532,000 $291,500

C.$10 $10

Explanation:

Before Dividend After Dividend

(a)Stockholders’ equity

Paid-in capital

Common stock, $10 par

$2,650,000 $2,915,000

In excess of par value $106,000

Total paid-in capital

$2,650,000 $3,021,000

Retained earnings

$532,000 $291,500

Total stockholders’ equity

$3,182,000 $3,312,500

(b)Outstanding shares

$265,000 $291,500

(c)Par value per share

$10 $10

10×$26,500=$265,000

$2,650,000+$265,000=$2,915,000

$14×$26,500=$371,000-265,000

=$106,000

$265,000+$26,500=$291,500

8 0
3 years ago
By lowering production costs, _____ help domestic producers compete against foreign imports. subsidies duties quotas tariffs
MrRa [10]
By dropping production costs, subsidies aid domestic manufacturers strive in contrast to foreign imports and attainment export markets. Subsidies proceeds many forms as well as cash grants, low interest loans, tax breaks and government equity contribution in domestic companies. Government subsidies should be paid for or usually by taxing people and businesses. The biggest protectors of the agricultural subsidies are the industrialized nations of the world and the consequence of subsidies is subsidies protect inefficient domestic producers. Conferring to the strategic trade policy, subsidies can assist a company to attain a first mover benefit in an developing industry. Non-tariff obstructions which comprise of subsidies, quotas, voluntary export restraints and anti dumping duties. 

4 0
3 years ago
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