Shareholders' Equity = Assets – Liabilities where the rearrangement reflects the residual claim of equity owners.
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Answer:
A gain of $2, 500 will be reported on the income statement.
Explanation:
When a bond is issued at par it means that there are no discounts or bond premium. Rather the bonds that are issued at par will be sold at face value.
This means that the bond's contract and market rates are equal.
Therefore in this scenario one fifth of the bond was sold at $97,500.
Value of the bond is $500,000, so the market value of portion of bond sold is:
(1/5)* 500,000= $100,000
However the amount payable is $97,500
Profit made= Market price - Amount payable
Profit made = 100,000 - 97,500= $2,500 gain
Answer:
$13.80
Explanation:
Calculation to determine the offering price
Using this formula
Offering Price = NAV/1-load
Let plug in the formula
Offering Price = $12.70/1-0.08
Offering Price =$12.70/0.92
Offering Price = $13.80
Therefore the offering price is $13.80
<span>GDP = C + I + G + NX = $5.5 trillion + $1 trillion + $1.5 trillion + $.75 trillion - $1.25 trillion = $7.5 trillion</span>