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Liono4ka [1.6K]
3 years ago
6

On January 1, 2019, a company issued $401,800 of 10-year, 12% bonds. The interest is payable semi-annually on June 30 and Decemb

er 31. The issue price was $416,753 based on a 10% market interest rate. The effective-interest method of amortization is used. What is the book value of the bond liability as of June 30, 2019 (to the nearest dollar)
Business
1 answer:
enot [183]3 years ago
6 0

Answer:

The book value of the bond liability as of June 30, 2019 is:

$401,800

Explanation:

The face value of the bond issued is $401,800

The issue price = $416,753

Bond premium = $14,953

This bond premium will be amortized for 10 years semi-annually using the effective-interest method.

However, as of June 30, 2019, no bond has been repaid, since its maturity is after 10 years.  Therefore, the liability on the bond remains the amount of the face value of the bond, which is $401,800.

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Answer:

c. attention is paid to competitive priorities and strategic fit.

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This clearly reflects that management's main concern is to strategic performance, and how does it create a space in the market share, as gaining from competitive advantage.

8 0
3 years ago
The controller of Ashton Company prepared the following projected income statement: Sales $88,000 Total Variable cost 70,400 Con
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Answer:

Contribution margin ratio = 20%

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contribution margin ratio = ($17,600 ÷ $88,000) × 100

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3 years ago
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6 0
3 years ago
Other things the same, if the interest rate falls, then a. firms will want to borrow more, which increases the quantity of loana
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Answer: (a).

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This would further lead to increase in the level of invested funds by the public as it would get cheaper for the corporates to avail loans.

7 0
3 years ago
what you would do if, in an interview for a merit position, you were asked your political party affiliation. What would you do i
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2. That is information that is detailed in your Curriculum Vitae.

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