1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
xxTIMURxx [149]
3 years ago
6

On June 30, 2018, Mabry Corporation issued $15 million of its 8% bonds for $13.8 million. The bonds were priced to yield 10%. Th

e bonds are dated June 30, 2018. Interest is payable semiannually on December 31 and July 1. If the effective interest method is used, by how much should the bond discount be reduced for the 6 months ended December 31, 2018? a. $48,000 b. $60,000 c. $69,000 d. $90,000
Business
1 answer:
Ugo [173]3 years ago
5 0

Answer:

Mabry Corporation

Using the effective interest method, the bond discount should be reduced for the 6 months ended December 31, 2018 by:

= d. $90,000

Explanation:

a) Data and Calculations:

Face value of bonds issued = $15 million

Issue price of the bonds =         13.8 million

Bonds discounts =                     $1.2 million

Coupon rate of interest = 8%

Effective interest rate = 10%

Interest payment = semi-annually on December 31 and July 1

December 31, 2018:

Interest payment = $600,000 ($15 million * 4%)

Interest expense = $690,000 ($13.8 million * 5%)

Amortization of discounts = $90,000 ($690,000 - $600,000)

Fair value of bonds = $13.89million ($13.8m + $90,000)

You might be interested in
Petunia is a debtor. Her employer Quantum Investments, Inc., her ex-husband Rob, her alma mater State University, and Timely Cre
Fed [463]

Answer:

a. Petunia only

Explanation:

A petition for relief through an individual's repayment plan is a document filled out asking to pay off a debt by making small individual payments stretched out over a specific period of time, and can only be filled by the debtor and accepted by the creditors. Therefore it can only be filled out by Petunia.

4 0
2 years ago
What do investors use the income statements of organizations for?
Ivenika [448]

Answer:

Investors use income statements to determine the profitability of a company over time. ... This is the amount that a company would pay shareholders, per share, if the company paid out all of its net income as dividends.

Explanation:

5 0
2 years ago
When the quantity of coal supplied is measured in kilograms instead of pounds, the demand for coal becomes
wolverine [178]

Answer:

the quantity of coal becomes more elastic

hope this helps you ☺️☺️

3 0
2 years ago
A product ________ is a group of products linked through usage, customer profile, price points, and distribution channels.
S_A_V [24]

 A product <u>Line</u> is a group of products linked through usage, profile, price points, customer and distribution channels.

The correct fill in the blank to this question is product line.

A group of products linked through usage, customer profile, price points, and distribution channels is known as a<u> Product line</u>. The products are identical and focus on the same market . Their function or channel distribution might be similar. Possibly their physical attributes, prices, quality, or type of customers are the same. We call this sort of activity as product lining.

Product line is basically a group of related products all marketed under a single brand name that is sold by the same company. Companies sell multiple product lines under their various brand names, the basic purpose is to distinguish them from each other for better usability for consumers.

Product line pricing involves the separation of goods and services into cost price categories in order to create different perceived quality levels in the minds of consumers.

Product lines are usually part of a marketing strategy. Companies keep introducing more products to attract buyers. Specifically, they want to attract  those buyers who are already familiar with their brand.

You can learn more about product line at

brainly.com/question/14308690

#SPJ4

6 0
1 year ago
How can business owners attract qualified laborers and prevent employee turnover?
marissa [1.9K]

Business owners can attract qualified laborers by having a positive corporate culture and offering higher starting wages. Business owners can prevent employee turnover by hiring more selectively, focusing on having an experienced store manager, and by offering promotions for good performance.

4 0
2 years ago
Read 2 more answers
Other questions:
  • What is not an advantage of finding a career that involves your interests?
    8·1 answer
  • Wanda is faced with an ethical dilemma. She knows her supervisor, the CFO, wants to accelerate the recoding of revenue to an ear
    8·1 answer
  • Select the appropriate steps to allow a trusted site for internet explorer version 8
    9·1 answer
  • Assume a firm increases its revenue by $100 while increasing its cost of goods sold by $85. How much additional tax will the fir
    12·2 answers
  • Norr and Caylor established a partnership on January 1, 2010. Norr invested cash of $100,000 and Caylor invested $30,000 in cash
    7·1 answer
  • An ISP is granted a block of addresses starting with 150.80.0.0/16. The ISP wants to distribute these blocks to 2600 customers a
    14·1 answer
  • William took out a $440,000 mortgage to purchase his personal residence. The residence is worth almost $1 million, and William w
    6·1 answer
  • Garnishment cannot exceed what percent of the weekly take-home pay?
    10·2 answers
  • 15 points please help
    13·1 answer
  • What is the chief benefit to using a
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!