Answer:
Austere Corporation
The amount of the proceeds from the bond that should be recorded as an increase in liabilities is:
= $320,100.
Explanation:
a) Data and Calculations:
The bonds issued = $330,000 at 106
Number of $1,000 bonds issued = 330 ($330,000/$1,000)
Market value of each warrant = $3
Proceeds from issue of bond = $330,000*106% = $349,800
Fair value of warrant issued = 330*30*$3 = $29,700
The bond issue liability = $349,800 - $29,700 = $320,100
The answer is: [A]: " Nov. "
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Answer:
Ranking 10% interest rate:
1) 5 years
2) 10 years
3) 1 year
Raking 2% interest rate:
1) 10 years
2) 5 years
3) 1 year
Raking 18% interest rate:
1) 1 year
2) 5 years
3) 10 years
Explanation:
You have to apply to bring the amount of money to present value, according with the information, the formula is the next:
Present Value = Future Value/((1+ interest rate)^(n))
Where n is the number of years that you have to wait to receive the money.
You have to calculate every situation with the respective amount of time and interest rate, the result must be money. and when you get the 9 results, you have to compare every situation and chose the higher amount of money according to the interest rate, for example:
Present value = 140/ ((1+10%)^(1))= 127
= 140/ ((1+10%)^(5))= 149
= 140/ ((1+10%)^(5))= 135
So the answer for the first scenario with an interest rate of 10% is:
Ranking 10% interest rate:
1) 5 years
2) 10 years
3) 1 year
Answer: $30,000
Explanation:
In accounting, the treatment of the Sale and Operating Leaseback operation is such that a gain is only recognized if the sales price is more than the fair value. In such a case the difference between the fair value and the carrying price is considered the Gain on Sale.
The Difference between the sales price and the fair value is to be amortized over the period of use.
Seeing as the selling price is more than the fair value, the Gain on Sale is therefore,
= Fair Value - Carrying Value
= 310,000 - 280,000
= $30,000
$30,000 is the amount of gain on sale of the property recognized by Alla on January 1, Year 1.
Answer:
$16.93
Explanation:
Current stock price = dividend ( 1 + growth rate) / required return - growth rate
$1.4(1.04) / 0.126 - 0.04 = $16.93
