Answer:
Consider the following explanation
Explanation:
Under Effective interest method, Interest calculated at the effective interest rate (i.e., the yield of the bond) is charged as an expense annually, and the payment made basis the Coupon rate.
In the given case, interest to be paid semi annually i.e, on June 30 and on December 31, will be $62,500 (i.e., 2,500,000 * 5% * 6/12).
On the basis of above, the interest expense to be charged in the 2017 can be calculated as follows: take a look to the attached archive.
As calculated above, the amount to be charged as interest expense for the year 2017 is (80,220 + 80,840 i.e.,) $ 161,060.
The answer is series 7 which is for investment agents <span>who want to sell </span>fixed-income<span> investment products such as bonds, stocks, and packaged products.</span>
Answer: 8.85%
Explanation:
GIVEN THE FOLLOWING ;
Municipal bond yield = 5.75%
After-tax rate = 35%
In other to produce the same after tax rate, What should be the yield of the synthetic company bond;
Assume yield on synthetic company bond = SC yield ;
We can connect our assumption using the mathematical relation below;
Municipal bond yield = after tax bond yield
5.75% = SC yield (1 - tax rate)
5.75% = SC yield (1 - 35%)
5.75% = SC Yield × 65%
SC yield = (5.75/65)%
SC yield = 0.08846%
SC yield = 8.85%
Answer:
1. Factory supervisory salaries <u><em>Production Cost</em></u> Factory Overhead
2. Sales commissions Period Cost Selling expense
3. Income tax expense Period Cost tax expense
4. Indirect materials used <u><em>Production Cost</em></u> Factory Overhead
5. Indirect labor <u><em>Production Cost </em></u>Factory Overhead
6. Office salaries expense Period Cost Administrative expense
7. Property taxes on factory building <em><u>Production Cost</u></em><em> </em>Factory Overhead
8. Sales manager's salary Period Cost Selling expense
9. Factory wages expense <em><u>Production Cost </u></em>Direct Labor
10. Direct materials used <em><u>Production Cost</u></em> Direct Materials
Explanation:
A period cost is any cost that cannot be capitalized into prepaid expenses, inventory, or fixed assets
Period cost goes straight to expense account
While
Production Cost do capitalizes through Inventory and later recognize as cost of goods sold.
