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3 years ago

For bonds issued 2019, the taxpayer must amortize bond premium using which of the following methods?

Business

1 answer:

MArishka [77]3 years ago

4 0

Answer:

For bonds issued 2019, the taxpayer must amortize bond premium using the following method:

a. Straight-Line Method.

Explanation:

The premium paid by the taxpayer for a bond represents part of the cost basis of the bond. The bond premium can be tax-deductible at a rate spread out (amortized) over the bond's lifespan. The straight-line method for bond premium amortization is considered to be a simpler method than the effective interest amortization method. While the straight-line amortization divides the bond's total premium over the remaining payment periods, the effective interest, which is more complicated, computes some unique values at all points during the amortization process.

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Vladimir79 [104]

The seconds one is the correct answer

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3 years ago

A salesperson earns $350.25 per week plus 12% of her weekly sales. Which of the following describes the sales necessary for the

Natali5045456 [20]

The equation for problem above is:
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3 years ago

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2 years ago

How long will it take for a $4000 investment to grow to $6000 at an annual rate of 15%, compounded monthly? Assume that no withd

Inessa05 [86]

Answer:

It will take 2.72 years and 32.64 months.

Explanation:

Future value is the sum of principal amount and compounded interest amount invested on a specific rate for a specific period of time.

Use following formula to calculate the time period.

FV = PV x ( 1+ r )^n

FV = Future value = $6,000

PV = Present Value = $4,000

r = rate of interest = 15% yearly = 15% / 12 = 1.25%

n = time period = ?

$6,000 = $4,000 x ( 1 + 1.25% )^n

$6,000 = $4,000 x ( 1.0125 )^n

$6,000 / $4,000 = ( 1.0125 )^n

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Log 1.5 = n log 1.0125

n = Log 1.5 / log 1.0125

n = 32.64 months

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