Answer:
$1,200
Explanation:
Since the promissory note is accepted by Dallas Corporation for the period of only four months in the Year 1 i.e. from the September 1, Year 1 to December 31, Year 1, therefore the interest revenue will be accrued for the period of four months which shall be calculated using the below mentioned equation:
Interest revenue=Promissory note amount*interest rate*4/12
=$30,000*12%*4/12
=$1,200
Answer:
The current price of the bond is $913.91 as computed below
Explanation:
In order to determine the current bond price,the pv formula in excel comes handy.
The pv formula is stated as below:
=pv(rate,nper,pmt,fv)
rate is the yield to maturity on the bond which is 10.40% in this case
nper is the period to maturity of the bond which is 6 years
pmt is the annual coupon payment payable by the bond which is denoted as coupon rate* face value of the bond i.e 8.40%*$1000=$84
fv is the face value of the bond which repayable at maturity
=-pv(10.40%,6,84,1000)
=$913.91
Answer:
Annual depreciation 2017= $8,000
Explanation:
Giving the following information:
The cost of the asset is $50,000 with an estimated five-year life and $10,000 salvage value at the end of its useful life.
T<u>o calculate the depreciation expense under the straight-line method, we need to use the following formula:</u>
<u></u>
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (50,000 - 10,000)/5
Annual depreciation= $8,000
Answer:
If the manufacturer does not want to be involved in any sales or marketing activities, he will probably have to employ a sales agent to handle those activities.
Explanation:
A sales agent is an individual or a firm that is employed by a manufacturer to handle the sales and/or distribution of goods within an assigned territory.
Answer:
a. As a result of the price increase in corn, the supply of corn would increase. At the same time, the amount of acreage used in corn production would increase.
b. The most likely cause of the change in the amount of acreage used in corn production is:
A. The higher price signals suppliers that corn is becoming more valuable.
Explanation:
With corn as the major ingredient for the production of ethanol biofuel the demand and supply of corn increase to match with the increasing price. Suppliers, on their part, increase production by utilizing more acreage of land devoted for corn production. This is the typical interplay between the market forces that drive market equilibrium.
