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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>

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A non-governmental, not-for-profit organization held the following investments: Investment Cost Fair value (beginning of the yea
zysi [14]

Answer:

c. $24,850

Explanation:

A non-governmental, not-for-profit organization held the following investments: Investment Cost Fair value (beginning of the year) Fair value (end of the year) Stock A (100 shares) $50 per share $45 $51 Stock B (200 shares) $40 per share $41 $49 ; Bonds Cost $9,000 Fair value (beginning of the year) Fair value (end of the year)$10,000 $9,950

The amount that should be the total value of investments reported in the year-end statement of financial position? will be the fair value of the investments at the end of the year becaue investments by financial reporting standards are carried at fair values unlike physical assets carried at costs

Stock A = 100 Shares x fair value end of year of $51 = 5,100

Stock B = 200 Shares x fair value end of year of $49 = 9,800

Bond @ Fair value end of year...........................................= 9,950

Total............................................................................................$24,850

5 0
3 years ago
When the president issues a rule or regulation that reorganizes or otherwise directs the affairs of the executive branch?
oksano4ka [1.4K]
What you described is called an executive order. The president can do this whenever he wants and if it's unconstitutional then the congress and the judiciary system, more specific the Supreme Court, can overthrow this and ban the executive order because it's considered to be unconstitutional or harmful. The president can use this for almost anything.
4 0
3 years ago
Read 2 more answers
an organization that seeks to operate efficiently and effectively to achieve its goals without focusing on profit as a motive
Likurg_2 [28]

Answer: A non profit organization

Explanation: A non profit organization is an establishment created to perform efficiently and effectively, without necessarily making profit as its aim.

They most times function in the area of humanitarian needs, health and medicine, financially empowering the unemployed in communities.

The non profit organization are most times sponsored by government of nations, international bodies ( such as UN, WHO, UNESCO).

6 0
3 years ago
Ian participates in a 401(k) plan at work. For every $1 Ian contributes to the plan, his employer adds 50 cents. Employer contri
Inessa [10]

Answer: $5,150

Explanation:using the information given above,

For every $1 contributed by the employee, employer adds 50cent.

Employer contribution ends after employee contributes $2500 to the 401(k) plan.

Last year:

Ian's weekly contribution = $75

Number of weeks in a year = 52

Ian's total contribution ($75 × 52) = $3,900

Ian's Employer's total contribution:

$0.5 × $2500 = $1,250

Therefore total contribution last year :

$3900 + $1250 = $5,150

6 0
3 years ago
Nelson Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annu
Katyanochek1 [597]

Answer:

14.74 %

Explanation:

Accounting rate of return = Average Profits / Average Investment x 100

therefore,

Accounting rate of return = ($100,000 - $65,000) / $237,500 x 100

                                           = 14.74 %

where,

Average Investment = ( initial investment + scrape value ) ÷ 2

3 0
2 years ago
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