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stepladder [879]
3 years ago
8

A corporation issued $580000, 10%, 5-year bonds on January 1, 2020 for $626400, which reflects an effective-interest rate of 7%.

Interest is paid annually on January 1. If the corporation uses the effective-interest method of amortization of bond premium, the amount of bond interest expense to be recognized on December 31, 2020, is
a.$40600.
b.$43848.
c.$58000.
d.$62640.
Business
1 answer:
ioda3 years ago
7 0

Answer:

The correct answer is option (B).

Explanation:

According to the scenario, the given data are as follows:

For Jan.1,2020 value = $626,400

Interest rate = 7%

So, we can calculate the amount of bond interest expense by using following formula:

Interest Expense = Carrying Value × Market Interest Rate

By putting the value of following

Interest expense = $626,400 × 7%

= $626,400 × 0.07

= $43,838

Hence, the amount of bond interest expense to be recognized on December 31, 2020, is $43,838.

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Lawn Chopper Company sells two types of lawn mowers. The first one is a basic lawn mower, which has variable costs of $50 and se
Temka [501]

Answer:

See below

Explanation:

Breakven even point is computed as

= Fixed costs / ( Sales price per unit - Variable costs per unit)

For basic lawn mower, Given that;

Fixed cost = $5,000,000

Sales price per unit = $150

Variable costs per unit = $50

BEP = $500,000 / ($150 - $50)

BEP = $500,000 / $100

BEP = 5,000 units

For Riding tractor, given that;

Fixed costs = $500,000

Sales price per unit = $1,500

Variable cost per unit = $500

BEP = $500,000 / ($1,500 - $500)

BEP = $500,000 / $1,000

BEP = 500 units

It therefore means that 5,000 units of basic Lawn mower must be sold to break even, while 500 units of riding tractor must be sold to break even.

7 0
3 years ago
Which of the following is the most important role of marketing in the process selection decision?
IRISSAK [1]

Answer:

(C) Estimating and managing future demand.

Explanation:

Marketing is basically analyzing the demand of the consumers and then supplying it at maximum to get the maximum profit.

This involves some main steps, in which the most essential is the planning, which involves about estimating and managing the demand and then the entire plan of production, supply of commodity.

Thus, the most important step in marketing is to estimate the demand and supply, and then managing the future demand basically.

7 0
3 years ago
Big Time Widgets has the following inventory data: December 1 Beginning inventory of 15 units at $6.00 per unit December 7 Purch
kolbaska11 [484]

Answer:

Cost of goods sold on a LIFO basis for December = $409.50

If periodic inventory system is followed then, there is no proper weekly record, proper record is missing and therefore, average method is followed, in that case usage of LIFO or FIFO is not suggested.

Explanation:

As per LIFO method, we have Last In First Out which means the item which is last added in inventory will be sold first.

In the given instance we have things as following:

1 December       opening      15 units         $6.00 per unit           $90.00

7 December      purchased   50 units       $6.60 per unit           $330.00

12 December     Sales           45 units        $6.60 per unit           $297.00

Balance after sales

15 units @ $6.00 per unit = $90.00

5 units @ $6.60 per unit = $33.00

20 December    Purchased  30 units      $7.50 per unit              $225

29 December    Sales          15 units        $7.50 per unit              $112.5

Balance

15 units @ $6.00 per unit = $90.00

5 units @ $6.60 per unit = $33.00

15 units @ $7.50 per unit = $112.50

As stated above, under LIFO we have Last In First Out

Cost of goods sold

12 December     Sales           45 units        $6.60 per unit           $297.00

29 December    Sales           15 units        $7.50 per unit              $112.5

Total cost of goods sold in December = $297 + $112.5 = $409.5

In case periodic inventory system had been used then,

no proper record is maintained, for cost at which the goods are acquired, and therefore average method is followed, since no proper cost record is maintained.

Final Answer

Cost of goods sold on a LIFO basis for December = $409.50

If periodic inventory system is followed then, there is no proper weekly record, proper record is missing and therefore, average method is followed, in that case usage of LIFO or FIFO is not suggested.

8 0
3 years ago
Bruce is the owner of Orion Inc., a manufacturer of electronic gadgets. He wants to hire the most honest job applicants as marke
Evgesh-ka [11]

In the context of employee selection, it can be inferred that Bruce is likely to employ an integrity test .

<u>Explanation: </u>

The integrity test is a particular kind of psychological test intended to assess whether the individual is trustworthy, truthful and reliable. The lack of integrity is related to fraud, crime, vandalism, disciplinary issues, and absences.

Two main categories of honesty assessments are covert (character-based) tests that assess features relevant to obedience to rules; and transparent measures that analyze a candidate's attitudes to different CWBs explicitly.

Integrity tests can sometimes be reasonable job performance measurements all in all. This isn't shocking, because honesty is strongly linked to perception, which is a strong indicator of overall employment success.

When tandem with cognitive skills tests, credibility assessments may provide considerable value to a selection process as others ' personality characteristics.

6 0
3 years ago
Jonathan's company has been operating under restrictions placed by the state government. His company now has to issue public sta
Natasha2012 [34]

Answer: direct and indirect

Explanation:

Right on Plato

5 0
3 years ago
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