No, there is not any requirement of recording when the fair value of bonds decreases to $6000000 on December 31 of the current year.
Given that Starbucks purchased bonds with $ 7 million face value at par for cash on July 1 of the current year and the bonds pay 7 percent interest the following June 30 and December 31 and mature in three years.
We are required to tell whether there is requirement of any recording when the fair value of bonds decreases to $6000000 on December 31 of the current year.
A bond is basically a debt security, similar to an IOU and borrowers issue bonds to raise money from investors willing to lend them money for a certain amount of time. When we buy a bond, we are lending to the issuer, which may be a government, municipality, or corporation.
There is not any requirement of any recording when the fair value decreases to $600000 because it is not affecting our books of accounts because in our books they are recorded at face values.
Hence there is not any requirement of recording when the fair value of bonds decreases to $6000000 on December 31 of the current year.
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A business enterprise is a for-profit entity. there are different ways a business enterprise can be organized for legal and tax purposes. whatever the structure, the common element is the for-profit aspect.
Answer: Tenant's improvements that are not legally removable are included in the Personal Property of Others Coverage
Explanation:
The false statement about the Building and Personal Property Coverage Form is that "Tenant's improvements that are not legally removable are included in the Personal Property of Others Coverage"
The above is incorrect. This is because the Tenants Improvements and Betterments are not covered under the
Personal Property of Others Coverage but rather, they are covered in the Business Personal Property.
Answer:
Flat fee= fixed costs
Variable cost= rental plus
Explanation:
Giving the following information:
The Rent Expense for a 12-foot-long box truck, where Tamara's Trucks charges a flat fee of $150 per rental plus $0.79 per mile driven.
We need to determine what kind of costs are.
We know that fixed costs do not change with production variation. In this case, fixed costs don't change with milage. Therefore, the flat fee is a fixed cost.
Variable costs increase or decrease with variation in production. The total cost of rental plus varies with the number of miles. The rental plus is a variable cost.
Answer:
b. a 13.33 percent increase in the price of the good
Explanation:
We can write the price elasticity of demand as:
We have to guess which event produces a 10% drop in the quantity demanded (dQ/Q=-0.10).
Knowing the concept of elasticity, this can be produced by a price increase.
The amount of this increase can be estimated knowing the value of the PED (price elasticity of the demand).
Then, what causes the 10% drop in the demanded quantity is a 13.33% price increase.