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
schepotkina [342]
3 years ago
13

A company issues $15,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2019. Interest is paid on June 30 and December 31. T

he proceeds from the bonds are $14,703,108. Using straight-line amortization, what is the carrying value of the bonds on December 31, 2021?
Business
1 answer:
shutvik [7]3 years ago
3 0

Answer:

$14,747,642

Explanation:

Data provided in the question

Issued amount = $15,000,000

Coupon rate = 7.8%

Time period = 20 years

Yield to maturity is 8%

So for computing the carrying value of the bonds

First we have to compute the discount amortization for 3 years which is shown below:

= ($15,000,000 - $14,703,108) ÷ 20 years × 3 years

= $44,533.80

So, the carrying value of the bonds

= $14,703,108 + $44,533.80

= $14,747,642

You might be interested in
Aleutian Company produces two products: Rings and Dings. They are manufactured in two departments: Fabrication and Assembly. Dat
Wittaler [7]

Answer:

Estimated manufacturing overhead rate= $3 per machine hour

Explanation:

Giving the following information:

Machine Hours Per Unit:

Rings= 6 (1,000 units)

Dings= 11 (2,040 units)

All of the machine hours take place in the Fabrication Department, which has an estimated total factory overhead of $85,200.

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 85,200/(6,000 + 11*2,040)= $3 per machine hour

6 0
3 years ago
Great Skin Inc. is establishing a pricing strategy for a new moisturizer. The total cost to produce each unit is $3.50. The comp
dolphi86 [110]
Break even idk tbh bruh it’s said wrong answer
3 0
3 years ago
In calculating earnings per share, companies deduct preferred dividends from net income if:
Savatey [412]

Answer: Option B

Explanation: Earnings per share is calculated by dividing net income available to common shareholders with the weighted average number of shares.

Deduction of preferred dividends from net income is done only when dividends are declared by the entity, otherwise not. Preference shareholders have priority over common shareholders in case of dividends, so it will result in reduction of earnings to common shareholders but only when the dividends are declared and distributed.

7 0
3 years ago
True or False. A scope management plan is used to develop, confirm, and control a common understanding of the project between cu
NARA [144]

Answer:

True

Explanation:

the process of identifying and defining what actions are required to deliver a project's requirements

6 0
2 years ago
The term ______ refers to the degree to which a firm uses debt financing (or other types of fixed-cost financing) to fund its op
jek_recluse [69]

Answer:

The term Operating leverage refers to the degree to which a firm uses debt financing (or other types of fixed-cost financing) to fund its operations.

Explanation:

Operating leverage is a measure of how revenue growth translates into growth in operating income

4 0
3 years ago
Other questions:
  • Gnomes R Us just paid a dividend of $1.90 per share. The company has a dividend payout ratio of 25 percent. If the PE ratio is 1
    8·1 answer
  • Policies are at the center of the bull's-eye model. <br><br> a. True <br><br> b. False
    9·1 answer
  • "fundamental disequilibrium," its government choose not to devalue its currency. a likely consequence of this would be
    5·1 answer
  • You are 30 years old today and are considering studying for an MBA. You just received your annual salary of $50,000 and expect i
    5·1 answer
  • Which of the following statements about the theory of sustainability is true?a. Sustainability is the idea that socially respons
    9·1 answer
  • Castles in the Sand generates a rate of return of 12% on its investments and maintains a plowback ratio of .40. Its earnings thi
    10·1 answer
  • Fallen Company commonly issues long-term notes payble to its various lenders. Fallen has had a pretty good credit rating such th
    6·1 answer
  • Businesses, individuals, and governments often need to raise capital, while others have surplus funds. In a well-functioning eco
    13·1 answer
  • There are 3 servers in the checkout area. The interarrival time of customers is 2 minutes. The processing time is 5 minutes. The
    15·1 answer
  • An agent is aggrieved by an action of the administrator summarily suspending that person's registration. the agent can:
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!