All categories

3 years ago

What term is used to describe an account that a bond trustee manages for the sole purpose of redeeming bonds early?

Business

1 answer:

stellarik [79]3 years ago

3 0

Answer:

c. Sinking fund

Explanation:

The Sinking fund is the fund that is used to explain the account in the case of the trustee managers of a bond for a purpose of redeeming them early. It could be performed in a periodically that aside the money for debt payment or for the asset replacement

Therefore as per the given situation, the option c is correct

And, the same is to be considered

You might be interested in

Classify each of the following costs as relevant or irrelevant to the decision at hand and briefly explain your reason. a. The p

jasenka [17]

Answer:

a. The purchase price of the old computer when replacing it with a new computer with improved features - Irrelevant cost

Sunk costs are considered irrelevant and the price of the old computer is a sunk cost as it has already been incurred.

b. The cost of renovations when deciding whether to build a new office building or to renovate the existing office building - Relevant

The cost of renovations will help the company decide which alternative is cheaper between building a new office or renovating.

c. The original cost of the current stove when selecting a new, more efficient stove for a restaurant. - Irrelevant

Like the first, this is a sunk cost so it is irrelevant.

d. Local tax incentives when selecting the location of a new office complex for a company’s headquarters. - Relevant

Local tax incentives could reduce cost of operation so is relevant when choosing headquarter location.

e. The fair market value (trade-in value) of the existing forklift when deciding whether to replace it with a new, more efficient model. - Relevant

The existing machine can be traded in for part of the cost of a new one using its market value to reduce the cost of the new one. It is relevant.

f. Fuel economy when purchasing new trucks for the delivery fleet. - Relevant.

Higher fuel economy can reduce cost of transportation so is a relevant cost.

g. The cost of production when determining whether to continue to manufacture the screen for a smartphone or to purchase it from an outside supplier. - Relevant.

This is a relevant cost because the it will help the company decide the cheaper alternative.

h. The cost of land when determining where to build a new call center. - Relevant.

Some land will be in areas that will have higher real estate prices. Your preferred cost of land will help determine which areas to look for locations in.

i. The average cost of vehicle operation when purchasing a new delivery van. - Relevant.

If this cost is too high it will increase expenses. It is a relevant cost to note for cost maximisation.

j. Real estate property tax rates when selecting the location for a new order processing center. - Relevant

Real estate taxes need to be known so that cost estimation can be made on the order processing center.

6 0

3 years ago

Alpha Trendz, a clothing and apparel manufacturer, carefully studies information available on the Internet.It also checks comput

zheka24 [161]

Answer: (C) Planning

Explanation:

The planning stage is basically refers to the process in which the various planning and activities are held for achieving the desired result in an organization.

The main benefits of the planning is that it makes the work more efficient and systematic so we can easily develop various types of plans according to the specific process.

According to the question, the company is in the planning stage of the sales process where the we can easily get information about the products and the services provided by the company over the internet.

Therefore, Option (C) is correct.

8 0

3 years ago

the rlx company just paid a dividend of $3.10 per share on its stock. the dividends are expected to grow at a constant rate of 4

lesantik [10]

The current price of the stock is $68.04. The most recent price at which a security was sold on an exchange is the current price.

<h3>Does the market price match the present pricing?</h3>

Both buyers and sellers use the current price as a benchmark. The asking price is a good reflection of current worth, but depending on supply and demand, the actual selling price could be greater or lower.

The current price, often known as the "market price," is the cost that was most recently exchanged for a share or unit of security, coin, good, or precious metal that is traded on an exchange. The market capitalization, or "market cap," of a firm is calculated using the market price per share.

Given:

Current Price = D1/(ke - g)

D1 = 3.10 × (1 + .0425)

ke = 9%

g = 4.25%

Current price = 3.10 × (1+.0425)/(9% - 4.25%) = $68.04

To learn more about current price, visit:

brainly.com/question/14363232

#SPJ4

8 0

2 years ago

Assume that a Parent company owns 100% of its Subsidiary. On January 1, 2016 the Parent company had a $1,000,000 (face) bond pay

PSYCHO15rus [73]

Answer:

a. Interest income from bond investment

intercompany transaction gains or losses are eliminated when preparing consolidated financial statements

b. Interest expense on bond payable

intercompany transaction gains or losses are eliminated when preparing consolidated financial statements

c. Gain (loss) on constructive retirement of bond payable

gain on retirement of bond = $1,070,000 - $996,000 = $74,000

d. Consolidated net income

consolidated net income = income from parent company + income from subsidiary + net gain from retirement of bond = $630,000 + $420,000 + $74,000 = $1,124,000

7 0

3 years ago

Information on Westcott Corporation's direct labor costs for a recent month follows: Standard direct labor rate $ 3.75 per hour

zaharov [31]

Answer:

11,120 hours

Explanation:

In this question, we apply the labor efficiency variance which is shown below:

Labor Efficiency Variance = (Actual Hours × Standard Rate) - (Standard Hours × Standard Rate)

$4,200 Unfavorable = (Actual Hours x $3.75) - (10,000 hours x $3.75)

$4,200 Unfavorable = (Actual Hours x $3.75) - $37,500

$41,700 = (Actual Hours x $3.75)

So, the actual hours would be

= $41,700 ÷ $3.75

= 11,120 hours

7 0

4 years ago