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Kryger [21]
3 years ago
12

Trego Company issued, payable on December 31, 2015, $10,000 face value, 8%, 4-year bonds. Interest will be paid annually each De

cember 31. Market interest rate on similar bonds is 6%. Trego uses the effective interest rate method of amortizing bond discount or premium. (PV of annuity; n; n=4;i=6%)=3.46511 (PV; n=4;i=6%)=0.79209 What is the issuing price?
a. $9,503.
b. $10,735.
c. $10,693.
d. $9,603.
Business
1 answer:
ahrayia [7]3 years ago
4 0

Answer: $10693

Explanation:

The issuing price can.wb calculated thus:

Firstly, we'll calculate the annual interest which will be:

= $10000 × 8%

= $800

The present value of the interest will be:

= 800 × pvifa (6%,4yrs)

= 800 × 3.46511

= 2772.09

Pv of face value will be:

= 1000 × pvif(6%,4yrs)

= 10000*0.79209

=7920.90

Therefore, the issuing price will be:

= PV of interest + present value of face value

= 2772.09 + 7920.90

= 10692.99

= $10693

Therefore, issuing price is $10693.

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vladimir2022 [97]
One single payment of money, opposed to a an annuity. (a series of payments made over time)
8 0
3 years ago
The actual variable cost of goods sold for a product was $140 per unit, while the planned variable cost of goods sold was $136 p
kozerog [31]

Answer:

$326,400 is the variable cost quantity factor while $56,000 is the unit cost factor

Explanation:

The variable cost quantity factor is a measure of the difference between the planned and actual units  multiplied by planned variable cost.  

That is Variable Cost quantity factor = (planned units  - actual units sold) x        planned variable cost

                                                            = (14000-2400) - 14000) x $136

                                                            = (11600 - 14000) x $136

                                                            =  -$326,400

Unit Cost factor = $(140 - 136) x 14000 units

                          =$56,000

3 0
3 years ago
Read 2 more answers
A firm has current liabilities of $500, a current ratio of 1.5, and a quick ratio of 1.1. calculate the level of inventory for t
SCORPION-xisa [38]

The inventory level will be used by an inventory manager to regulate the optimal time for manufacturing, if they are handling a manufacturer's warehouse, or to demand more if the product is being stored as stock at a store.


To solve this:

Get first the Current Assets this solved by multiplying the current liabilities to the current ratio.

CA = $500 (1.5) = $750


Then get the inventory level by multiplying the current asset to the product of the current liabilities and quick ratio.

Inventory level = $750 (500 x 1.1) = $412,500

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Answer:

Option "D" is the correct answer for the following.

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Explanation:

The quantity the ventilator provides differs with adjustments in airway pressure, lung performance and ventilation system integrity.

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4 0
3 years ago
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Answer:

From the question, the contract stipulates that Destin Company has three (3) performance obligations.

1. Manufacture a new 3D printer

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3. Maintenance of the 3D printer over the life of the printer.

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