Answer:
$5,000
Explanation:
Since the payments are due semi-annually and the bond were issued on January 1, 2016 at 100, we will have to calculate the interest cash payments for the two semi-annuals in 2016. Therefore, the interest rate to use is the full annual 5% stated rate. Therefore, we have:
Interest cash payment = Bond face value × Interest rate
= 100,000 × 5%
Interest cash payment = $5,000.
Therefore, the cash interest payments in 2016 is $5,000.
Answer:
$4,424
Explanation:
Calculation to determine what amount would you have lowered your federal income tax
Using this formula
Reduction in Federal income tax amount = (Mortgage interest + Real estate taxes) x Tax rate
Let plug in the formula
Reduction in Federal income tax amount= ($13,200 + 2,600) x 0.28
Reduction in Federal income tax amount=$15,800×0.28
Reduction in Federal income tax amount = $4,424
Therefore The amount that you would have lowered your federal income tax is $4,424
To find the fixed cost, we need add all costs that do not change with the number of haircuts. These are the salaries of the barbers and the manager bonus, the advertisement fees, rent and the magazines. We also have the standard part of the utility payment, the 170$. Those add up to:
6*1310+520+280+980+20+170=9830$. We also have regarding the variable costs:
The utilities variable part are included since they depend on haircuts, barber supplies and the base rate of each barber per haircut. Hence those are:
(5.90+0.38+0.27 per haircut)=6.55$ per haircut
