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swat32
3 years ago
6

A wheat farmer should __________ in order to reduce his exposure to risk associated with fluctuations in wheat prices. Group of

answer choices sell wheat futures buy wheat futures buy a contract for delivery of wheat now, and sell a contract for delivery of wheat at harvest time sell wheat futures if the basis is currently positive and buy wheat futures if the basis is currently negative
Business
1 answer:
Serhud [2]3 years ago
6 0

Answer: increase

Explanation:

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Answer:

a.                                               Debit         Credit

Cash                                       $174,600

Discount on bond payable   $18,941

        Bonds Payable                                  $173,000

        Paid -in Capital - Stock Warrants    $20,541

<u>Workings</u>

Market value of Bonds        155,700

Market value of Warrants    <u>20,760</u>

Total market value               176,460

Value assigned to Bonds = 174,600 / 176,460 * 155,700 = 154,059

Value assigned to Warrants = 174,600 / 176,460 *20,760 = 20,541

b.                                              Debit       Credit

Cash                                        $174,600

Discount receivable                                 $1,600

         Bonds Payable                                $173,000

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3 years ago
On July 1, Shady Creek Resort borrowed $310,000 cash by signing a 10-year, 11% installment note requiring equal payments each Ju
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Answer:

$34,100

Explanation:

The interest on the installment note for the first year is a function of both the face value of the note and interest rate of 11%

Interest expense on the first annual payment=$310,000*11%

Interest expense on the first annual payment=$34,100

The amount principal repayment in respect of the  first annual payment is the amount of payment which is $52,639 minus the interest portion of the payment.

The Principal portion of the first payment=$52,639-$34,100=$18,539

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