Answer: Amount should Jent report as gain on the sale of bonds : <em>$22000</em>
Explanation:
Given:
Bonds purchased at a discount of $10,000
Bonds sold at a premium of $14,000
Amortization of the discount amounted to $2,000.
Therefore, gain on the sale of bonds can be computed as:
Gains = (Cost + Premium) - (Cost - Carrying Cost)
∵ Carrying Cost = Purchasing Cost - Amortization
Carrying Cost = 10000 - 2000
Carrying Cost = $8000
∴ Gains = (10000 + 14000) - (10000 - 8000)
<u><em>Gains = $22000 </em></u>
The conservative is likely to believe in civil liberties as they traditionally have been defined. Correct answer: A
The conservatives and the liberals are form the most of the U.S. political spectrum. Tradition, human imperfection, organic society, hierarchy and authority are the most important parts and goals of this political and social philosophy.
Answer:
Starbucks
Starbucks' Capital Structure
Restructured from a primarily equity-financed company to a primarily debt-financed company:
A. Yes.
Explanation:
Starbucks' assets are more than 60% financed by long-term debts, with less than 40% financed by equity. The advantage of having a higher debt leverage is to optimize the returns to the stockholders. This is because interest expenses arising from the debts are tax-deductible. The ROE (return on equity) is always higher for a debt-leveraged firm than an equity-financed firm because more of the net income will be available for distribution to stockholders, given the tax benefits of having more debts.