1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
yan [13]
2 years ago
6

David purchased a $5,000 bond on the secondary market. He paid a $500 premium. What is David's basis?

Business
1 answer:
Pavel [41]2 years ago
5 0

Answer:

David's basis on the $5,000 bond purchased is:

C. $5,000.

Explanation:

a) Data and Analysis:

Cost of Investment in bond = $5,000

Premium paid = $500

b) David's basis on the bond is the quoted price of the bond, which is a security investment.  It is on this basis price that future interest will be calculated.  The additional $500 as premium he paid is just an additional cost which he incurred in exchange for his interest in the bond.  It does not form part of the basis.

You might be interested in
Old Tired Professor Mullen, Inc. has $20,000 of ending (EI) finished goods inventory. If beginning (BI) finished goods inventory
Zolol [24]

Difference between beginning and ending CoG: 20,000-10,000 = 10,000

Difference + sold:

10,000 + 40,000 = 50,000

Answer: $50,000

3 0
3 years ago
Pepsi Cola has entered into a long-term contract with a South African beverage business. The contract calls for the South Africa
Helen [10]

Answer:

<u>Licensing </u> is the correct answer.

Explanation:

Licensing is defined as a trade agreement between a company that gives another company authorization to manufacture its product by contract and payment of royalties for the use of the right to use the trademark.

Companies generally license: design, patents, trademarks, copyrights and others whose purpose is to assist in increasing profitability and expanding business.

Despite being a very profitable strategy worldwide, product licensing is not crucial to a company's success, despite the ease of marketing a product or brand already consolidated and valued by the consumer, it is necessary to ensure compliance in production processes. and focus on marketing and sales.

8 0
3 years ago
A company reported total equity of $161,000 at the beginning of the year. The company reported $226,000 in revenues and $173,000
Bond [772]

Answer:

$314,000

Explanation:

The computation of total assets is shown below:-

Total equity = $161,000

Revenue = $226,000

Expenses = $173,000

Liabilities at the end of the year = $100,000

Income of the year = $226,000 - $173,000

= $53,000

Total assets of the company at the end of the year = (Total Stock Holders Equity) + Total Liabilities

=(Total equity at the beginning of the year + Income for the year ) + Liabilities at the end of the year

= $161,000 + $53,000 + $100,000

= $314,000

3 0
3 years ago
A firm that uses ___________ segmentation divides a market into groups based on life stage, race, or profession.
Triss [41]

Answer:

Demographic

Explanation:

Demographic segmentation is often used in marketing to group customers according to demographic factors. The demographic factors include- age, gender, occupation, race, religion and income.

Other forms of segmentation includes :

1. Behavioural segmentation

2. Geographic segmentation

3. Psychographic segmentation

I hope my answer helps you

7 0
3 years ago
What is one main feature of the free enterprise system?
SCORPION-xisa [38]

Answer:

People often use the terms free enterprise, free market, or capitalism to describe the economic system of the United States. A free enterprise economy has five important characteristics. They are: economic freedom, voluntary (willing) exchange, private property rights, the profit motive, and competition

Explanation:

People often use the terms free enterprise, free market, or capitalism to describe the economic system of the United States. A free enterprise economy has five important characteristics. They are: economic freedom, voluntary (willing) exchange, private property rights, the profit motive, and competition

3 0
3 years ago
Read 2 more answers
Other questions:
  • Newcastle Coal Co. owns a warehouse that it is not currently using. It could sell the warehouse for $300,000 or use the warehous
    7·1 answer
  • Roasters Corporation and Outdoor Barbecues, Inc., enter into a contract for a sale of a commercial grill. The contract requires
    10·1 answer
  • Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. Of
    11·1 answer
  • Bart sold a parcel of land for $21,000. He paid a real estate agent a commission of $1,500 for assisting with the sale. Bart had
    5·1 answer
  • Analysts say visitors stay an average of how many seconds on any webpage?
    5·1 answer
  • In about 100 words, outline the advantages of using RFID technology instead of bar code scanning technology in managing the inve
    6·1 answer
  • TYR just announced yesterday that its fourth-quarter earnings will be 35% lower than last year's fourth quarter. You observe tha
    13·1 answer
  • The town of Draper, with a population of 20,000, sits adjacent to State University, which has an enrollment of 27,000 students.
    10·1 answer
  • If the consumption function is defined as C = 5,500 + 0.9Y, what is the
    11·1 answer
  • An outward shift in the production possibilities curve of an economy can be caused by an increase in A. unemployment B. the labo
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!