I believe that the answer to the question provided above is <span>worldcom try to structure the transactions to get a “step-up” in the tax bases of mci’s assets because he doesn't have enough influence to do so.</span>
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Answer:
d. Idea development
Explanation:
Based on the information provided within the question it seems that Innov Inc. is in the Idea development process of product development. This is the process of coming up with different designs for feasible products that may be profitable and worth while for the company. These ideas then go into the screening process where the best ideas are chosen to be produced.
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Answer:
Bond issue price                                                    $892,100
Face value                                                              $949,000
Discount on bond                                                   $56,900
Number of Interest payments (10 years x 2)          10
Discount to be amortized per payment                $5,690
Interest on bond                                                    $51,210
Date        Description                               Debit        Credit
Dec.  31 Bond interest expense             $56,900
               Discount on bonds payable                      $5,690
               Cash                                                           $51,210
               (Interest on bond paid and Premium amortized)
 
        
             
        
        
        
 Answer: False 
Explanation:
The real interest rate is the nominal interest rate adjusted for inflation. 
If the nominal interest rate was made with inflation in mind and this inflation is less than anticipated, the real rate will be higher not lower than expected. 
For instance: Assume the nominal rate is 8% and the two parties assumed inflation would be 4%. Real rate would be:
= 8 - 4 = 4%
If inflation is instead 2%, real rate would be:
= 8 - 2 = 6%
Real rate would be higher than anticipated. 
 
        
             
        
        
        
Annual Compound Formula is:
A = P( 1 + r/n) ^nt
Where:
A is the future value of the investment
P is the principal investment
r is the annual interest rate
<span>n is the number of 
interest compounded per year</span>
t is the number of years the money is invested
So for the given problem:
P = $10,000
r = 0.0396
n = 2 since it is semi-annual
t = 2 years
 
Solution:
A = P( 1 + r/n) ^nt
A = $10,000 ( 1 + 0.0396/2) ^ (2)(2)
A = $10000 (1.00815834432633616)
A = $10,815.83 is the amount after two years