Answer:
January 1, 2020
Bonds Payable 1600000 Dr
Loss on Redemption of bonds 36800 Cr
Discount on Bonds Payable 4800 Cr
Cash 1632000 Cr
Explanation:
The redemption of bonds before the maturity usually requires a payment for redemption which is a certain percentage of its face value. It is usually higher than the face value. The above bonds are redeemed at 102 which means at 102% of the face value of the bonds. Thus, the cash paid to redeem the bonds is,
Cash = 1600000 * 102% = 1632000
The bonds have a carrying value, which is the face value less discount or add premium, of,
Carrying value = 1600000 - 4800 = $1595200
If they are redeemed for an amount in excess of the carrying value, they are redeemed at a loss.
The loss on redemption is,
Loss = 1595200 - 1632000 = $36800
Answer:
<em>Economic growth refers to a steady increase in the production of goods and services in an economic system.</em><em> </em><em><u>True</u></em>
Answer:
her expected gain is $45,000.
Explanation:
If she wins
She will make = $400,000
Probability of winning = 0.3
Expected income = $400,000 x 0.3 = $120,000
Cost on the cash = $75,000
Expected gain = Expected income - Cost = $120,000 - $75,000 = $45,000
If she loses the case she has to bear the cost incurred to prepare the case. So, the probability on the cost side is 1 but probability on the income side is 0.3 so we calculated the 0.3 probable income which is $120,000 after deducting the cost the lawyer will have expected gain of $45,000 only.
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
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