Answer:
Coupon rate is 5.17%
Explanation:
Yield to maturity is the annual rate of return that an investor receives if a bond bond is held until the maturity.
Assuming Face value of the bond is $1,000
Face value = F = $1,000
Selling price = P = $948
Number of payment = n = 9 years
Bond Yield = 5.9%
The coupon rate can be calculated using following formula
Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]
5.9% = [ C + ( $1,000 - $948 ) / 9 ] / [ ( $1,000 + $948 ) / 2 ]
5.9% = [ C + $5.78 ] / $974
5.9% x $974 = C + $5.78
$57.466 = C + $5.78
C = $57.466 - $5.78 = $51.686
Coupon rate = $51.686 / $1,000 = 0.051686 = 5.17%
Answer: a. additional paid-in capital to the extent that previous net "gains" from sales of the same class of stock are included therein; otherwise, from retained earnings.
Explanation:
When a stock is sold for higher than its par value, the additional value is recorded in the additional paid-in capital account as a gain to equity.
If a treasury stock is sold for less than its cost, the difference between the selling price and the cost will be deducted from the additional paid in capital account but the only amount that is deductible is the gain that the company has made so far from selling stock above their par value.
If the loss from the treasury stock is more than this gain, the remainder will be deducted from the retained earnings account.
Answer:
The reimbursement of medical expenses to a taxpayer is not considered as an income or taxable by the IRS.
If the taxpayer had previously deducted the expense and it resulted in tax savings, the reimbursement of a medical expense by insurance would be taxable. More so, there would have been no tax benefit if either the taxpayer had claimed the standard deduction, or if the floor for the medical deduction exceeded the medical expenses.
Answer:
Effect on cash is -21000
Explanation:
Indirect method make adjustment to reconcile the net income to cash. It depends on the account if it is added or subtracted to net income.
In this case,
Accounts Receivable increased are subtracted from net income and Accounts Payable increased are added to net income
Accounts Receivable increased -48000
Accounts Payable increased +27000
Effect on cash is -21000
Answer:
Managerial accounting is the practice of analyzing and communicating financial data to managers, who use the information to make business decisions.
Explanation: