As the attrition loss in a process increases, what happens to the yield?

On January 1, 2020, NoDice Corporation issues $540,000, 5-year, 12% bonds for $529,000. Interest is paid semiannually on January

Svet_ta [14]

Answer:

Dr Interest expense $33,500

Cr Discount on bonds payable $1,100

Cr Cash $32,400

Explanation:

Discount on bonds payable=$540,000-$529,000=$11,000

Amortization of discount=discount on bonds issue/period of the bond

period to maturity of the bond is 5 years *2 =10 since the bond pays interest semi-annually

Amortization =$11,000/10=$1,100

Semi-annual interest=$540,000*12%/2=$32,400

the bond semi-annual interest expense=discount amortization+interest payment

the bond semi-annual interest expense=$32,400+$1,100=$33,500

5 0

3 years ago

In one year, Hitech Microdevices will pay a common stock dividend of $4.35. You predict that you will be able to sell your Hitec

Andre45 [30]

Answer:

Price to be paid now = $52.89

Explanation:

<em>The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return. </em>

T<em>he stock would be held for just a period, hence we would use the single period return model. This is given as follows:</em>

Price now = D/(1+r) + P×(1+r)

Dividend , r - rate of return, P -year-end price of stock

Dividend = 4.35, r-16%, P- 57

Price = 4.35/(1.16) + 57/(1.16)= $52.89

Price to be paid now = $52.89

7 0

2 years ago

1. You are investing $100 today in a savings account at your local bank. Which one of the following termsrefers to the value of

ahrayia [7]

He earned 11$ interest on his 100$

4 0

2 years ago

Read 2 more answers

A company has decided to discontinue a component of its business but, when the reporting period ends, the component has not yet

azamat

Answer: income from operations for the year and the amount by which the component’s fair value less cost to sell is less than book value

Explanation:

Discontinued operations is simply and accounting term which means the parts of the core business of a company that have either been shut down or divested.

With regards to the question, the amount that the company would report as income from discontinued operations would be the income or loss that was gotten from operations, that is revenues, the expenses, gains and the losses and the impairment loss.

Therefore, the correct answer will be option B "Income from operations for the year and the amount by which the components fair value less cost to sell is less than the book value".

5 0

2 years ago

Henrietta, the owner of a very successful hotel chain in the Southeast, is exploring the possibility of expanding the chain into

Troyanec [42]

Answer:

Henrietta

The amount that Henrietta can deduct in the current year for investigating these two businesses is:

= $83,800.

Explanation:

a) Data and Calculations:

Investigation cost for expanding the chain into the Northeast = $32,000

Investigation cost for expanding the chain into another location= $51,800

Total investigation costs = $83,800

b) According to the IRS, for the investigation costs to be deductible, they "must be both ordinary and necessary." "Ordinary" refers to common or acceptable expense in the Hotel industry, while "necessary" means the expense helps Henrietta's business in its pursuit of earning income (which a business expansion does). Therefore, the total investigation cost is deductible.

3 0

2 years ago