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Marizza181 [45]
3 years ago
7

A company issues $60,000 of 6%, 5-year bonds dated January 1 that pay interest semiannually on June 30 and December 31 each year

. If the issuer accepts $62,000 for the bonds, the premium on bonds payable will (increase/decrease) total interest expense recognized over the life of the bond by $ .
Business
1 answer:
bekas [8.4K]3 years ago
6 0

Answer:

Decrease, $2,000

Explanation:

The premium on bonds payable will <u>decrease </u>total interest expense recognized over the life of the bond by <u>$2,000</u>. The difference between the face value & the issue value $2,000 ($62,000 - $60,000) should be amortize over a period of time and of which is reduced from interest expense.

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Prime Corporation liquidates its ​85% owned subsidiary Bass Corporation under the provisions of Secs. 332 and 337. Bass Corporat
aliya0001 [1]

Answer:

$20000 gain for John Corporation and $10000 loss for Bass Corporation.

Explanation:

John Corporation gain(loss) = FMV of property - Liability assumed - Stock basis

                                               = 55000-10000-25000

                                               = 20000

Bass Corporation gain/loss = 55000-65000

                                              = - 10000

Therefore,  $20000 gain for John Corporation and $10000 loss for Bass Corporation.

5 0
3 years ago
aylor &amp; Edwards Inc. manufactures television sets. Last month, direct materials (electronic components, etc.) costing $550,0
fenix001 [56]

Answer:

Unitary prime cost= $170.24

Explanation:

Giving the following information:

Last month, direct materials (electronic components, etc.) costing $550,000 were put into production.

Direct labor= $880,000.

Manufacturing overhead equaled $495,000

The company manufactured 8,400 television sets during the month.

Unitary prime cost= (direct material + direct labor)/number of units

Unitary prime cost= (550000 + 880000)/8400= $170.24

7 0
4 years ago
What should be the price of a stock with a beta of 0.7 that just paid a dividend of $1.25 that is expected to grow at 4% if the
Montano1993 [528]

Answer: $32.05

Explanation:

Beta = 0.7

Dividend = $1.25

Growth rate = 4%

Risk free rate = 3%

Market return = 10%

Since, Required return = risk free rate + beta × (market rate - risk free rate)

We will then slot in the values and.this will be:

= 3% + 0.7 × (10% - 3%)

= 3% + (0.7 × 7%)

= 3% + 4.9%

=7.9%

The price of the stock will then be:

= D1/(Required return-Growth rate)

=1.25 / (0.079 - 0.04)

= 1.25 / 0.039

= $32.05

4 0
3 years ago
Ivory is listening to a manager present statistics that they believe supports a new initiative. Which type of critical thinking
ioda

The type of Critical Thinking Questions that Ivory should ask at this point are:

  • What are the assumptions?
  • what are the issues and the conclusions?
  • Are there fallacies in the reasoning?
  • How authentic is the data presented?

<h3>What are Critical Thinking Questions?</h3>

Critical  Thinking Questions are questions that make inquiries into the veracity of a claim.

They help the evaluator to maintain a logical and rational line of thoughts so that they are able to connect clearly the relationship between facts and ideas.

Learn more about Critical Thinking Questions at:
brainly.com/question/6034421

3 0
2 years ago
Magic Realm, Inc., has developed a new fantasy board game. The company sold 16,400 games last year at a selling price of $70 per
olga nikolaevna [1]

Answer:

feelsbad

Explanation:

8 0
3 years ago
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