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ExtremeBDS [4]
2 years ago
9

A government acquires as an investment a 30-year U.S. Treasury bond having a face value of $10,000. At the end of year 20, with

10 years remaining until maturity, the bond had a fair value of $10,200. Taking into account the discount at which the government initially purchased the bond, its amortized cost was $9,760. Assuming that it held the bond in a governmental fund, the government should report the bond at a value of
Business
1 answer:
astraxan [27]2 years ago
3 0

Answer:

$10,200

Explanation:

Based on the information given Assume that it held the bond in a governmental fund, the GOVERNMENT SHOULD REPORT THE BOND AT A VALUE OF THE AMOUNT OF $10,200 reason been that we were told that the bond had a FAIR VALUE of the amount of $10,200.

Therefore the government should report the bond at a value of $10,200.

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On January 1, 2020, Martinez Company makes the two following acquisitions. 1. Purchases land having a fair value of $330,000 by
vova2212 [387]

Answer:

Explanation:

a)

Date Account Titles and Explanation Debit Credit

January 1, 2020 Land $360,000.00

Discount on notes payable $246,621.00

Notes payable $ 606,621.00

(To record purchase of land by issuing note payable)

PV of $606,621 discounted at 11% =606,621/(1.11)^5 = $ 360,000

2.

Computation of the discount on notes payable:

Maturity value $560,000

Present value of $560,000 due in 8 years at 11% = $560,000 * 0.43393 = $ 243,000

Present value of $39,200 payable annually for 8 years at 11% annually—$39,200 * 5.14612 = $ 201,728

Present value of the note = $ 243,000 + $ 201,728 = $ 444,728

Discount = $ 560,000 - $ 444,728 = $ 115,272

Date Account Titles and Explanation Debit Credit

January 1, 2020 Equipment $444,728.00

Discount on notes payable $115,272.00

Notes payable $ 560,000.00

(To record purchase of equipment by issuing note payable)

b)

1.

Date Account Titles and Explanation Debit Credit

December 31, 2020 Interest expense ($ 360,000*11%) $39,600

Discount on notes payable $39,600

(To record the interest expense recorded and discount amortized)

2.

Date Account Titles and Explanation Debit Credit

December 31, 2020 Interest expense ($444,728 * 11%) $48,920

Discount on notes payable $9,720

Interest Payable ( $ 560,000 * 7%) $39,200

(To record the interest expense recorded)

7 0
3 years ago
Buatlah Jurnal Penyesuaian dan Jurnal Pembalik dari:
mash [69]

Answer:

I don't understand

Explanation:

English?

8 0
3 years ago
You have learned concepts: 1) Histogram, 2) Pareto Analysis, 3) Cause and Effect Diagram and 4) Control Impact Matrix from watch
Stolb23 [73]

An example of real-world cases where Histogram,  Pareto Analysis and others  mentioned tools in the question can be used is A Report from Microsoft which states that " that  of 80% Crashes that occurs in Windows  is due to the 0.4 part of the detected bugs in the whole system .

<h3>What are the usefulness of the tools like  Histogram,  Pareto Analysis?</h3>

Pareto analysis serves as one that stand on the premised  that to achieve the benefit worth 80% of a project, one would need to do at least the 20% of the work.

Histogram on the other hand is a  graphing tool which is s tool like impact matrix and can be used to give the summary of a data.

Hence, with the above tools , some of real word problems can be analyzed.

Learn more about Pareto Analysis on:

brainly.com/question/21326967

#SPJ1

5 0
1 year ago
Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received
Alenkasestr [34]

Answer:

a. $44,200

b. $44,684

Explanation:

To calculate after-tax costs we just need to deduct the tax saving amount from the pre-tax amount. The tax saving amount can be calculated bt multiplying the pre-tax amount into the tax rate

Requirement A (If she pays the $65,000 in December)

After-tax cost = Pre tax cost - PV of tax saving

After-tax cost = 65,000 - 20,800

After-tax cost = $44,200

working

Tax saving = $65,000 x 32%

Tax saving =  $20,800

Requirement B  (If she pays the $65,000 in January)

After tax cost = $65,000 - $20,315

After tax cost = $44,684

working

Tax saving = $65,000 x 35%

Tax saving = $22,750

Pv of tax saving = $22,750 x 0.893

Pv of tax saving = $20,316

7 0
3 years ago
Tucker Corporation is planning to issue new 20-year bonds. The current plan is to make the bonds non-callable, but this may be c
OverLord2011 [107]

Answer:

The required rate of return will increase.

Explanation:

The callable bonds are issued to insure that if market interest rate falls below the interest paid by bond then bonds can be called off and thereafter issuing another bonds at lower interest rate. Callable bonds are risky compare to non callable bond becasue investor faces problem of re -nvesting money after bonds are called off. Thus Investor expects higher rate to compansate this risk  as such by this plan required rate for the bond will increase

6 0
2 years ago
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