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gogolik [260]
3 years ago
13

On Januaryâ 1, 2019, Always Corporation issues $ 2,800,000â, 5-âyear, 10â% bonds for $ 2,710,000. Interest is paid semiannually

on January 1 and July 1. Always Corporation uses the straightline method of amortization. Theâ company's fiscal year ends on December 31. The amount of discount amortized on Julyâ 1, 2019â is:
Business
1 answer:
lukranit [14]3 years ago
6 0

Answer:

$9,000

Explanation:

If a bond is issued at a lower price than the face value of the bond, then the bond is issued on the discount. This discount is amortized over the bond's life. This amortization will be expensed as Interest Expense.

Discount = Face value - Issuance price = $2,800,000 - $2,710,000 = $90,000

Bond's Life = 5 years

Amortization of discount = $90,000 / 5 = $18,000 annually = $9,000 semiannually

On July 1, 2019, only 6 moth have passed after issuance. so, the amortization will be $9,000

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Assume you are going to receive a payment of $1,000 in 5 years. You'd like to know what that cash flow would be worth in 2 years
Digiron [165]

Answer:

The multiple choices are as follows:

Group of answer choices:

A. Present Value

B. Future Value

C. Discounted Value

D. Annuity

E. Lump Sum

The correct option is C,discounted value

Explanation:

The worth of the cash flow which is $1,000 is given with reference to the worth in 5 years' terms,hence restating the cash flow to its worth in two years' time is discounting to its two years' worth.

The answer cannot be present value since the cash flow is not being discounted to today's equivalent amount.

Also,future value is not correct since future value of $1,000 is already provided in the question

7 0
3 years ago
Which fixed expense would be most difficult to change if money is needed for car payments? rent utilities groceries internet
nata0808 [166]

Answer:

rent is most difficult to change.

Explanation:

8 0
3 years ago
Using multiple cost drivers on a flexible budget report will generally ______. Multiple choice question.
lutik1710 [3]

Using multiple cost drivers on a flexible budget report will generally make the budget accurate and effective.

<h3>What is flexible budget performance report?</h3>

A flexible budget performance report serves as one that make comparison between actual revenues and costs for a period.

There are some method used in estimating this report, but multiple cost drivers is an effective method to get an accurate report.

Learn more about flexible budget performance report at:

brainly.com/question/27201970

5 0
2 years ago
Owen expects to receive $ 25,000 at the end of next year from a trust fund. If a bank loans money at an interest rate of 7.1 %​,
Rzqust [24]

Answer: He could borrow from one of the following options:

(a) $18,605

(b) $11,428

(d) $20,000

Explanation:

If Owen borrows $18,605

Bank interest rate = 7.1% of $18,605

=7.1/100 ×$18,605

=$1, 320.955

Owen's debt at his bank=

$18,605+$1,320.9555 =

$19,925.955

When Owen receives the trust fund of $25,000, he can pay his debt and still has $5,074.045 with him.

If Owen borrows $11,428

Bank interest rate = 7.1% × $11,428

=$811. 388

Owen's debt at his bank=

$811.388+$11,428 =

$12,239.388

When Owen receives the trust fund of $25,000, he can pay his debt and still has $12,760.612 left with him.

If Owen borrows $20,000

Bank interest rate =7.1% of $20,000

=7.1/100 ×$20,000

=$1, 420

Owen's debt at his bank=

$20,000 + $1,420 = $21,420

When Owen receives the trust fund of $25,000, he can pay his debt at his bank and still has $3,580 left with him.

4 0
3 years ago
Even as it begins to produce the Mirai for the U.S. market, Toyota continues to manufacture its traditionally fueled cars, truck
Contact [7]

Answer:

Volatility

Explanation:

Volatility of industrial demand is the uncertainty in demand for product or parts by consumers. Companies need to adequately prepare for these changes in demand by the consumer so as to adequately provide the inventory or product to the customer.

In the given scenario Toyota is manufacturing product for all demands in the market place so as to capture all market shares.

They are producing both traditionally furled cars and the Mirai (a car that uses electricity). By this move they are appealing to both demand for normal fuel cars and those that want to use alternative energy sources

8 0
2 years ago
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