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yan [13]
3 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]3 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.

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Answer:

d

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The responsibility for answering the phones and filing correspondence in addition to the tasks is an example of extension.

<h3>What is an extension?</h3>
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2 years ago
Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits an
ikadub [295]

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since, the payment is made monthly

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on substituting the values in the above equation, we get

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A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company's una
kompoz [17]

Answer:

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