1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
inysia [295]
3 years ago
15

On July 1, Year 4, Pell Co. purchased Green Corp. 10-year, 8% bonds with a face amount of $500,000 for $420,000. The bonds are c

lassified as held-to-maturity, mature on June 30, Year 14, and pay interest semiannually on June 30 and December 31. Using the interest method, Pell recorded bond discount amortization of $1,800 for the 6 months ended December 31, Year 4. From this long-term investment, Pell should report Year 4 revenue of:
Business
1 answer:
Kruka [31]3 years ago
6 0

Answer:

<em>Options Include:</em>

A. $20,000

B. $16,800

C. $18,200

<em>D. $21,800 is Correct</em>

Explanation:

Interest income for a bond provided at a discount is equal to the total of both the periodic cash flows as well as the value of the amortized bond discount during the interest duration.

Periodic cash flows are equivalent to $20,000 ($500,000 death benefit multiply by 8 percent coupon rate multiply 1/2 year). The amortization for the discount is provided as $1,800.

<em>Income for the six-month period from July 1 to December 31, Year 4, is therefore $21,800 ($20,000 + $1,800).</em>

You might be interested in
"Which of the following statements are TRUE? I New issues of Treasury Bills are generally priced at par II New issues of Treasur
Aleksandr [31]

Answer:

The remaining part of the question is:

Which of the following statements are TRUE?

I New issues of Treasury Bills are generally priced at par

II New issues of Treasury Bonds are generally priced at par, or at a slight discount to par

III New issues of Agency Bonds are generally priced at par, or at a slight discount to par

A. I only

B. III only

C. II and III only

D. I, II, III

Correct Answer:

C. II and III only

Explanation:

It is a fact that virtually all new issues of T-Bills are always sold at a discount to par value. These are original issue discount obligations, with the accrued value of the discount being the interest income earned on these securities.

<em>Treasury Bonds and Agency Bonds are issued at par or in most cases at a very slight discount to par, and make periodic interest payments.</em>

4 0
3 years ago
Mikhail's claim has been denied once. Now, he is writing a second persuasive claim message to his digital media services company
Fynjy0 [20]

Answer:

a) Appeal to the receiver's sense of responsibility and pride in the company's good name

Explanation:

Persuasive messages refer to communicating an idea so as to persuade the recipient towards an action.

Such messages are usually drafted by sales and marketing personnel.

While drafting a persuasive message, AIDA (Attention, interest, desire and action) principle is usually followed by the marketers.

In the given case, Mikhail's claim has already been denied once and he is drafting the second persuasive message. As he expects resistance from the media company, he should draw the attention of the recipient towards their own responsibilities and duties and pride relating to the good reputation of the company.

He may choose to express, what the receiver's responsibility and duties are and how non performance of those puts the company's reputation (pride) at stake.

8 0
3 years ago
Suppose Capital One is advertising a 60​-month, 5.04 % APR motorcycle loan. If you need to borrow $ 8 comma 100 to purchase your
zhuklara [117]

Answer:

$153.01

Explanation:

For computing the monthly payment we need to apply the PMT formula i.e to be shown in the attachment

Given that,  

Present value = $8,100

Future value or Face value = $0

RATE =   60 months = 5 years × 12 months

NPER = 5.04% ÷ 12 months = 0.42%

The formula is shown below:  

= PMT(RATE;NPER;-PV;FV;type)  

The present value come in negative  

So, after applying the above formula, the monthly payment is $153.01

3 0
4 years ago
The drawee is the
IRINA_888 [86]

Answer:

C

Explanation:

The drawee is the bank with which the drawer has an account.

8 0
3 years ago
What type of activity is the purchase of equipment for cash?
RSB [31]
<span>Acquisition or Procurement is the means on how equipment is bought for businesses and the military. However for peoples own personal use, shopping is the more common everyday word.</span>
6 0
3 years ago
Other questions:
  • 12–2. Offer and acceptance. Schmidt, the owner of a small business, has a large piece of used farm equipment for sale. He offers
    9·1 answer
  • "Dexter purchases equipment from Ray Company for a normal market price of $5,000,000. As an incentive, Ray's salesman throws in
    9·1 answer
  • For claims about the product, positioning statements should: ________________a. cite all of the benefits that the brand offers.
    15·1 answer
  • An agent that represents a cluster of manufacturers, e-tailers, and content providers organized around a life event or major ass
    8·1 answer
  • If the interest rate is 8%, what is the 4-year discount factor? What is the 4-year annuity factor? What is the relationship betw
    5·1 answer
  • When you’re looking for a career that will be well suited to you, it’s important to consider the various ___ that are required t
    5·2 answers
  • The development group in a​ company's IS department is staffed primarily by​ programmers, test​ engineers, technical​ writers, a
    15·1 answer
  • Government policymakers decided to reduce the rate of inflation from 3% to 1.6%. As a result, the unemployment rate increased fr
    15·1 answer
  • What is watermill?write it advantages<br>​
    14·2 answers
  • Nice Watches inc has a planning process where the executive level of management, works with department and individual managers t
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!