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Aleonysh [2.5K]
2 years ago
15

On January 1, 2018, Legion Company sold $270,000 of 4% ten-year bonds. Interest is payable semiannually on June 30 and December

31. The bonds were sold for $146,125, priced to yield 12%. Legion records interest at the effective rate. Legion should report bond interest expense for the six months ended June 30, 2018, in the amount of
Business
1 answer:
RSB [31]2 years ago
6 0

Answer:

$8,767.50

Explanation:

Calculation for what Legion should report as bond interest expense for the six months ended

Using this formula

Bond interest expense= Carrying Value of Bond x Effective interest rate

Let plug in the formula

Bond interest expense=$146,125 x 12% yield interest x 6 months/12 months

Bond interest expense=$8,767.50

Therefore what Legion should report as bond interest expense for the six months ended is $8,767.50

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Curtiss Construction Company, Inc. entered into a fixed-price contract with Axelrod Associates on July 1, 2015, to construct a f
Gekata [30.6K]

subject?

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4 0
3 years ago
​Ashton is working on a project at PowerTek Inc., a well-known multinational corporation. He is using capital budgeting to estim
Sholpan [36]

Answer: A. He will quite certainly gain approval since the project has a positive net present value.

Explanation:

The options are:

A. He will quite certainly gain approval since the project has a positive net present value.

B. Approval is probable but not likely as he failed to account for the time value of money.

C. He will not gain approval as he failed to consider whether the project is leading edge or not.

D. Approval is probable but not likely as the project has been constructed on estimates instead of facts.

Capital budgeting is used to know whether the long term investment for a particular organization's is actually worth investing in or not by the company.

Based on the scenario in the question, since the present value of the estimated future cash flows is greater than the cost of the project, Ashton will quite certainly gain approval since the project has a positive net present value.

3 0
3 years ago
Edgar, Inc. has a materials price standard of $2.00 per pound. Six thousand pounds of materials were purchased at $2.20 a pound.
butalik [34]

Answer:

materials quantity variance: 1,200 unfavorable

Explanation:

(standard\:quantity-actual\:quantity) \times standard \: cost = DM \: quantity \: variance

std quantity 5400.00

actual quantity 6000.00

std cost  $2.00

(5,400 - 6,000) \times 2.00 = DM \: quantity \: variance

difference -600.00

quantity variance  $(1,200.00)

The difference between standard and actual quantity is negative. We used more pounds than expected, the variance will be unfavorable.

600 extra pounds at $2.00 each = 1,200

6 0
3 years ago
Taylor is analyzing the effects of wage rates on the supply of laptop computers. By using the ceteris paribus assumption, Taylor
Maru [420]

By using the ceteris paribus assumption, Taylor is holding the

  • holding all costs of production other than the wage rate constant
  • not considering retail price of laptop computers
<h3>What is ceteris paribus?</h3>

Ceteris paribus is a Latin phrase used in economics that means all other things being equal in English. It is used when studying the effect of one variable on another variable to mean that other variables that can affect the variable being studied is assumed to not change.

When Taylor is analyzing the effect of wage rates on the supply of laptop computers. By using the ceteris paribus assumption, he is assuming that other factors that would affect the supply of laptops are assumed to be constant.

The other factors that might affect the  supply of laptop computers include:

  • cost of production
  • retail price of laptops

Here is the complete question:

Taylor is analyzing the effects of wage rates on the supply of laptop computers. By using the ceteris paribus assumption, Taylor is __________.

Select the two correct answers below.

Select all that apply:

holding the supply of laptop computers constant

holding all costs of production other than the wage rate constant

holding wage rates constant

not considering retail price of laptop computers

To learn more about ceteris paribus, please check: brainly.com/question/13864080

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7 0
1 year ago
Luther's Operating Margin for the year ending December 31, 2008 is closest to: Group of answer choices 0.5% 0.7% 5.4% 6.8%
svlad2 [7]

Answer:

the operating margin is 5.4%

Explanation:

The computation of the operating margin is shown below:

As we know that

Operating Margin = Operating Income ÷ Sales

= $31.3 ÷ $578.3

= 5.4%

Hence, the operating margin is 5.4%

It could be determined by dividing the operating income from the sales

3 0
2 years ago
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