No, there is not any requirement of recording when the fair value of bonds decreases to $6000000 on December 31 of the current year.
Given that Starbucks purchased bonds with $ 7 million face value at par for cash on July 1 of the current year and the bonds pay 7 percent interest the following June 30 and December 31 and mature in three years.
We are required to tell whether there is requirement of any recording when the fair value of bonds decreases to $6000000 on December 31 of the current year.
A bond is basically a debt security, similar to an IOU and borrowers issue bonds to raise money from investors willing to lend them money for a certain amount of time. When we buy a bond, we are lending to the issuer, which may be a government, municipality, or corporation.
There is not any requirement of any recording when the fair value decreases to $600000 because it is not affecting our books of accounts because in our books they are recorded at face values.
Hence there is not any requirement of recording when the fair value of bonds decreases to $6000000 on December 31 of the current year.
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The conversion cost per unit of the inventory comes out to be $2.63.
<h3>What is a conversion cost?</h3>
A conversion cost is computed by adding the production overheads to the direct labor in the production process.
Given values:
Physical units: 155,000
Conversion cost: $413,370
Units in ending inventory: 1900 (3,800 X 50%)
Computation of conversion cost per unit:
Therefore, $2.63 is the conversion cost per unit on the inventory.
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Answer:
C. A federal system makes the government serve its citizens better because it allows for the existence of sub-units that have significant power.
Explanation:
A normative statement is a kind of statement which offers, the betterment, as includes a suggestion in the statement.
It is not descriptive statement, as it does not include any facts.
A descriptive statement states the facts and analyses the situations accordingly.
This statement is descriptive as rest above statements a and b includes facts.
And the statement d does not provide any suggestion, whereas only statement c provides a suggestion for the system.
Thus, correct option is
Statement c
Answer: c). Required reserves = $0
Explanation: Reserve requirement is a Central Bank mandate imposed on all banks under which they must keep a certain fraction of their deposits as reserves with the Fed. These reserves are known as Required reserves.
Since, in this case the bank is borrowing $100,000 from the Fed it does not have to keep any reserves on this amount. Reserves are to kept only from deposits that the Bank has and not from loan borrowed by the bank.
Thus, the correct option will be required reserves is $0.
Cornell's assignment of his interest in Equity Lending to Financial Consultants Corporation results in Cornell's wrongful dissociation and liability for any damages.
Option A
<u>Explanation:
</u>
The creditor uses his home equity as collateral loans. A domestic equity loan is a debt form. The debt is based on the price of the land, and an appraiser from the lending institution calculates the property’s value.
Equity finance is a way to fund the business by raising money from creditors. Funding equities means raising money by providing investors some pieces of your business, known as shares. When a company owner uses equity funds, he sells part of his stake in his firm.
If there is a breach on a loan agreement, the first and most common solution used by the lenders is the harm compensation. This may include the difference in the loan volume and the price of new credit, and any reduction of profit or loss.