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zheka24 [161]
3 years ago
5

Pierce Company issued 11% bonds, dated January 1, with a face amount of $800,000 on January 1, 2021. The bonds sold for $739,816

and mature in 2040 (20 years). For bonds of similar risk and maturity the market yield was 12%. Interest is paid semiannually on June 30 and December 31. Pierce determines interest at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2021, the fair value of the bonds was $730,000. The entire change in fair value was due to a change in the general (risk-free) rate of interest. Pierce's net income for the year will include:
Business
1 answer:
sdas [7]3 years ago
8 0

Answer:

unrealized gain from change in market value = $10,617

Explanation:

Bonds carrying value = $739,816

amortization of bond discount = ($739,816 x 6%) - ($800,000 x 5.5%) = $389

amortization of bond discount = ($740,205 x 6%) - ($800,000 x 5.5%) = $412

bond's carrying value = $740,205 + $412 = $740,617

unrealized gain = carrying value - market value = $740,617 - $730,000 = $10,617

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During what period of time did organized crime in the United States gain power and become more coordinated?
cricket20 [7]
The correct answer of the given question above would be PROHIBITION. The period of time when organized crime in the United States gained power and become more coordinated is during prohibition. Hope this is the answer that you are looking for. 
8 0
4 years ago
Glacier Corporation discovered these errors in August of Year 3: Depreciation Overstated $2,500 4,000 Prepaid Expense Omitted $3
miv72 [106K]

Answer:

e. $4,500

Explanation:

The net effect for the year 3 is shown below:

= Depreciation overstates in the year 1 + year 2 depreciation overstated - prepaid expenses omitted for the year 2 is

= $2,500 + $4,000 - $2,000

= $6,500 - $2,000

= $4,500

Therefore the net effect on the year 3 is $4,500

Hene, the correct option is e. $4,500

The other options are incorrect

3 0
3 years ago
Which of the following things can you do to improve your credit score?
Ede4ka [16]

Answer:

The correct answer is B

Explanation:

A credit score is the tool which is a statistical number that evaluates or computed the creditworthiness of the customer and it is based or grounded on the credit history.

In order to improve the credit score, one needs to use the credit card and pay the amount each month, which keeping no dues left.

3 0
3 years ago
Jim marley is the sole owner of marley's appliances. jim borrowed $100,000 to buy a new home to be sued as his personal residenc
docker41 [41]

Answer:

Economic entity

Explanation:

Economic entity is the principle of accounting, which states that the finances of the business entity should be kept separate from those of the shareholders, owner, partners or the related businesses.

This principle of accounting is considered to be one of the core, fundamental accounting principles.

So, Jim is the owner of the marley appliances and he borrowed $100,000 for buying the home. Therefore, it will not be recorded as the liability because the money borrowed for personal use and as per economic entity concept, the finances of business entity is separate from those of owner.

6 0
3 years ago
Which of the following is NOT considered to be one of the three primary functions that all organizations​ perform? A. research a
lidiya [134]

Answer: Research and development

Explanation: Primary functions are those functions which ensures that the essential requirements to operate the business efficiently are met. These require monitoring by the second level managers of the organisation.

Production, marketing and finance are the basic needs of an organisation for living in the market. Research and development is not an activity without which the business won't be able to run.

Thus, we can conclude that the right answer is Option A.

6 0
3 years ago
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