Answer:
$20,000 premium is amortized at the end of the first year.
Explanation:
Straight line amortization:
premium amortized = Premium / number of years
= ($5,200,000 - $5,000,000) / 10 years
= $200,000 premium / 10 years
= $20,000
Therefore, $20,000 premium is amortized at the end of the first year.
Answer:
The proportion of each payment that represents interest versus repayment of principal would be higher if the interest rate were higher
Explanation:
Amount of interest component in a loan instalment will be higher as compared with principal amount in the initial period of repayment . As period lapses , interest amount reduces progressively and principal amount increases . When the tenure of loan is increased , proportion of interest increases in an instalment .
Answer:
Increase in savings resulting directly from the given change in income
= increase in income - increase in consumption = $2000-$150 = $500
Marginal propensity to save = increase in savings/increase in income = 500/2000 = 0.25
Explanation:
It is a false statement that the existence of financial middlemen and financial intermediaries increases the efficiency of the financial market
<h3>Who are financial intermediaries?</h3>
This refers to those entities that acts as the middleman between two parties in a financial transaction such as a commercial bank, investment bank, mutual fund, or pension fund. They offer a number of benefits to the average consumer such as safety, liquidity, and economies of scale involved in banking and asset management.
However, It is a false statement that the existence of financial middlemen and financial intermediaries increases the efficiency of the financial market because only the buyers and seller influence an efficiency of the financial market.
Read more about financial intermediaries
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The pre-determined overhead rate per direct labor dollar for Dept. B is 1.35.
<h3>What is manufacturing overhead?</h3>
Manufacturing overhead costs are the cost associated with running a manufacturing facility.
Examples of factory overhead include
- indirect labor costs
- factory rent
- depreciation of plants and machinery
- Sales and administrative cost
<h3>What is direct labour cost?</h3>
The direct labour cost is the cost directly involved in the production of goods and services.
<h3>What is the pre-determined overhead rate per direct labor dollar for Dept. B?</h3>
The pre-determined overhead rate per direct labor dollar for Dept. B = Estimated manufacturing overhead / Estimated direct labor cost
= $162,000 / $120,000 = 1.35
To learn more about overhead costs, please check: brainly.com/question/8054214
