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timofeeve [1]
3 years ago
10

On January 1, 2021, Legion Company sold $240,000 of 4% ten-year bonds. Interest is payable semiannually on June 30 and December

31. The bonds were sold for $150,272, priced to yield 10%. Legion records interest at the effective rate. Legion should report bond interest expense for the six months ended June 30, 2021, in the amount of: (Round your answer to the nearest dollar amount.) Multiple Choice $4,800. $12,000. $7,514. $19,200.
Business
1 answer:
slavikrds [6]3 years ago
6 0

Answer:

$7,514

Explanation:

Calculation for how Legion should report bond interest expense for the six months ended June 30, 2021

Using this formula

Bond interest expense=Bonds amount*Priced to yield percentage

Bond interest expense=$150,272*(10%/2)

Bond interest expense=$150,272*5%

Bond interest expense=$7,513.6

Bond interest expense=$7,514 Approximately

Therefore Legion should report bond interest expense for the six months ended June 30, 2021 in the amount of $7,514

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Calculate the annual interest and the semiannual interest payment for the following corporate bond issues with a face value of $
Svetllana [295]

The answer to the question is shown below.

<h3>What is the Interest rate?</h3>
  • In finance and economics, interest is the payment of an amount above the repayment of the principal sum (that is, the amount borrowed) by a borrower or deposit-taking financial institution to a lender or depositor at a specific rate by borrower or deposit-taking financial institution.
  • It differs from a fee that the borrower may pay to the lender or a third party.
  • It is also distinct from a dividend, which is paid by a company to its shareholders (owners) from its profit or reserve, but not at a fixed rate, but rather on a pro-rata basis as a share of the reward gained by risk-taking entrepreneurs when revenue exceeds total costs.

Calculation:

Given -

Annual Interest Rate:

  • 5.75%
  • 6.40%
  • 6.00%
  • 7.55%

So, Annual Interest Rate:

  • 5.75% = 1000 × 5.75%= 57.50
  • 6.40% = 1000 × 6.40%= 64.00
  • 6.00% = 1000 × 6.00%= 60.00
  • 7.55% = 1000 × 7.55%= 75.50

So, Semiannual Interest Amount:

  • 5.75% = 1000 × 5.75%/2 = 28.75
  • 6.40% = 1000 × 6.40%/2 = 32.00
  • 6.00% = 1000 × 6.00%/2 = 30.00
  • 7.55% = 1000 × 7.55%/2 = 37.75

Therefore, the answer to the question is shown below.

Know more about Interest rates here:

brainly.com/question/25793394

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The complete question is given below:

Calculate the annual interest and the semiannual interest payment for the following corporate bond issues with a face value of $1,000. (Round your answers to 2 decimal places.) Find: Annual Interest Amount, and Semiannual Interest Payment

Annual Interest Rate:

5.75%

6.40%

6.00%

7.55%

7 0
2 years ago
do this document and I will give you 100 points send it back to me completed all the directions are on here.
Luden [163]

Answer:

I like chicken

Explanation:

3 0
3 years ago
Your uncle has $340,000 invested at 7.5%, and he now wants to retire. He wants to withdraw $35,000 at the end of each year, star
timama [110]

Answer:

17.27 years

Explanation:

For this question we use the NPER formula that is shown on the attachment below:

Provided that  

Present value = $340,000

Future value = $25,000

PMT = $35,000

Rate of interest = 7.5%

The formula is shown below:

= NPER(Rate;PMT;-PV;FV;type)

The present value come in negative

So, after solving this, the number of year is 17.27 years

5 0
3 years ago
The presence of Coca-Cola drinks in restaurants world wide is an example of Group of answer choices popularity invention diffusi
hoa [83]

The presence of Coca-Cola drinks in restaurants worldwide is an example of option(c)i.e, diffusion.

<h3>What is diffusion?</h3>

Diffusion is the process through which innovations spread from their initial implementation to various consumers, countries, regions, industries, markets, and businesses through the market or non-market channels. An innovation has no economic impact if it is not diffused.

The cognitive processes involved in straightforward two-choice decisions are modeled by the diffusion model. It distinguishes the standard of the evidence used in the decision-making process from the decision-making criteria and from other, nondecision-making processes like stimulus processing and reaction execution.

The four elements of diffusion, are:

(1) Innovation,

(2) Channels of Communication,

(3) Social System,

(4) Time.

To know more about diffusion refer to:  brainly.com/question/13399887

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6 0
2 years ago
Livi owns and operates Livi's Love From Scratch cupcake bakery. Livi has 10 locations throughout her state. When Livi is produci
hoa [83]

Answer:

Diseconomies of Scale

Explanation:

On the contrary to economies of scale which save costs when production levels go up, diseconomies of scale make costs go higher when their is an increase in the size of the organization.

Livi's Love From Scratch cupcake bakery has increased in size to reach 10 locations and this has caused crowed areas and delays.

4 0
3 years ago
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