Answer:
Interest Receivable 6,490 debit
Interest Revenue 6,490 credit
(To record interest revenue from Stellar Enterprises loan)
Explanation:
The banks accounting will reflect the accrued interest as well. From their perpective, the interest are revenue as they are the lender of the loan.
It will recognize the interest revenue from the accounting period
and will declare the interest receivable for the same amount.
<u>From this we can deduct:</u>
the payable from one entity is a receivable for another entry.
the interest expense from one firm will be interest revenue for another.
Answer:
a discount; higher than
Explanation:
A coupon rate is the interest rate that is paid on face value of bond by the those that issue bond. If the prevailing interest is higher than the coupon rate then investors will go for securities with higher rate of interest. It should be noted that All else constant, a bond will sell at a discount when the coupon rate is higher than the yield to maturity.
Answer:B
Explanation:
This is because as one's income increases his aggregate demand also increases as they both have direct relationship with each other.
Answer: Compression Failure
Explanation:
Any wooden member that has been overloaded beyond what it can carry would experience a compression failure.
A compression failure is a structural failure that is caused by overstressing a wooden or metallic material beyond the weight it can carry, leading to a collapse of the material.
Answer: $102,500 gain recognized and a basis in the land of $520000
Explanation:
From the information given in the question, we can infer that the amount of gain that Red Blossom recognize in the exchange will be:
= Fair market value of land - Corporation's basis in the Tea Company stock
= $520,000 - $417,500
= $102500
We should also note that the land basis will be $520000 which is the fair market value of the land.