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3 years ago

Which is true about the interest on corporate bonds?

1 answer:

5 0

Interest corporate bonds is taxed as an income tax but can also be tax as capital gain. Usually the interest itself is considered as state income tax. For gain and losses, that's the time it will gain capital gain if the if is redeemed before its maturity stage.

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Ivanhoe Company issued $1520000 of 6%, 5-year bonds at 95, which pay interest annually. Assuming straight-line amortization, wha

Mashutka [201]

Answer:

the journal entry to record bond issuance:

Dr Cash 1,444,000

Dr Discount on bonds payable 76,000

Cr Bonds payable 1,520,000

amortization of discount on bonds payable = $76,000 / 5 = $15,000

coupon payment = $91,200

total interest expense per year = $106,200

total interest expense for the 5 year period = $106,200 x 5 years = <u>$531,000</u>

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6 0

2 years ago

Handwriting and correct spelling on a work order aren't all that important because they have nothing to do with how well you fix

MArishka [77]

the answer here is false

5 0

3 years ago

All of the following assets will be included as intangible assets on the balance sheet exceptA. patents.B. copyrights.C. investm

Damm [24]

Answer:

investments.

Explanation:

Intangible assets are assets that cannot be physically seen. Example of intangible assets are parents, copyrights, goodwill, trademark etc

I hope my answer helps you

4 0

3 years ago

Typhanie, a customer service representative with WestComm Wireless Services, was asked by one of her customers if WestComm would

insens350 [35]

Answer:

E. Centralized Authority.

Explanation:

As Typhanie, a customer service representative with WestComm Wireless Services, was asked by one of her customers if WestComm would be interested in joining the chamber of commerce to meet potential customers and increase its contacts in the local business community. Typhanie believes this is a very good idea and approached her manager, Deondre, about becoming a chamber member. Deondre said to Typhanie, "Because the cost of membership is over $500 and you will have to leave the office to attend meetings, I will have to get approval from management above me." WestComm is an example of an organization with centralized authority.

In centralized authority, the decisions are made from the top level management or decisions are made from certain managers. Anyone can't make decisions by his or her own in this kind of management style. This system has many flaws as well. As we have seen here in this case, Typhanie is interested in going to chamber of commerce which definitely will be very good for the organisation but when she approached her manager Deondre, he said he even himself can't decide about it, he has to get the orders from his boss. Although the event can be good for the organisation but centralized decision making has made it almost impossible.

8 0

3 years ago

The Anson Jackson Court (AJC) currently has $150,000 market value (and book value) of perpetual debt outstanding carrying a coup

ch4aika [34]

Answer:

d. $750,000; 8.9%

Explanation:

The computation is shown below:

A. Current Total Market Value

Current market value of debt $150,000 The Current market value of equity $600,000 (10,000 shares × $60) Market Value $750,000

B. Weighted Average Cost of Capital (WACC) WACC = {Equity ÷ (Equity + Debt) × Cost of Equity} + {Debt ÷ ( Equity + Debt ) × Cost of Debt × (1 - 25%)}

= {$600,000 ÷ ($600,000 + $150,000) × 10%} + {$150,000 ÷ ($600,000 + $150,000) × 6% × 0.75}

= ($600,000 ÷ $750,000) × 10% + ($150,000 ÷ $750,000) × 6% × 0.75 = 0.08 + 0.009

= 8.90%

Hence, the correct option is D. $7,50,000 ; 8.90%

3 0

3 years ago