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2 years ago

If the market interest rate is greater than the contractual interest rate, bonds will sell

Business

1 answer:

zzz [600]2 years ago

4 0

Answer:

When the market rate of interest on bonds is higher than the contract rate, the bonds will sell at a discount.

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Marshall-Miller & Company is considering the purchase of a new machine for $50,000, installed. The machine has a tax life of

vlabodo [156]

Answer:

$10,620

Explanation:

Depreciation for Year 1 = 0.202 × $50,000

= $10,100

Depreciation for Year 2 = 0.323 × $50,000

= $16,150

Depreciation for Year 3 = 0.194 × $50,000

= $9,700

Depreciation for Year 4 = 0.125 × $50,000

= $6,250

Accumulated depreciation = $10,100 + $16,150 + $9,700 + $6,250

= $42,200

Book value of machine as on date of sale:

= Purchase price - Accumulated depreciation

= $50,000 - $42,200

= $7,800

Selling price = $12,500

Gain on sale of machine = $12,500 - $7,800

= $4,700

Tax rate = 40%

Tax on capital gain = $4,700 × 0.40

= $1,880

Net proceeds on sale of machine:

= Selling price – Tax paid on capital gain

= $12,500 - $1,880

= $10,620

8 0

3 years ago

Forever Jewelers uses the perpetual inventory system. On Aprilâ€‹ 2, Forever sold merchandise with a cost of $ 1 comma 500$1,500

Tema [17]

Answer:

Accounts Receivable $8,820

To Sales Revenue $8,820

Explanation:

The journal entry to record the sales revenue is shown below:

Accounts receivable A/c Dr $8,820

To Sales revenue A/c $8,820

(Being merchandise sold on credit basis)

For recording this we debited the account receivable as it increased the assets and credited the sales revenue as it also increased the revenue

The computation of sales revenue is shown below:

= Sales revenue - discount

= $9,000 - $9,000 × 2%

= $9,000 - $180

= $8,820

This is the answer but the same is not provided in the given options

6 0

2 years ago

Larkspur Corporation manufactures drones. On December 31, 2019, it leased to Althaus Company a drone that had cost $104,800 to m

Lady_Fox [76]

Answer:

First find the present value of the lease. Payments are constant and fixed so this is an annuity. As it is to be paid from the beginning, it is an Annuity due.

= Annuity * Present value interest factor of annuity due, 5 years, 7%.

= 37,400 * 4.3872

= $164,081

Date Account Details Debit Credit

Dec. 31, 2019 Lease Receivable $164,081

Cost of goods sold $104,800

Sales $164,081

Inventory $104,800

Date Account Details Debit Credit

Dec. 31, 2019 Cash $37,400

Lease Receivable $37,400

5 0

2 years ago

You decide to eat one more chip. the change in the total amount gained that comes from this action is the _____ . marginal cost

kow [346]

Marginal cost is the incremental cost incurred for one additional unit.

Marginal benefit is the incremental benefit gained from the one additional unit.

The maximized utility is the concept of getting maximum values from the minimum expenditure.

If you decide to eat one more chip. the change in the total amount gained that comes from this action is the Marginal benefit.

Hence the correct answer is the Marginal benefit

4 0

3 years ago

Read 2 more answers

During Burns Company's first year of operations, credit sales totaled $166,000 and collections on credit sales totaled $118,000.

marusya05 [52]

Answer:

1. Prepare all appropriate journal entries relative to uncollectible accounts and bad debt expense.

Db Bad debt expense_______ 3320

Cr Allowance for bad debt_________________ 3320

Db Allowance for bad debt__ 430

Cr Account Recevaible_____________________ 430

2. Show the year-end balance sheet presentation for accounts receivable.

Account receivable__________47570

Net account receivable_______44250

Explanation:

Credit sales 166000

Credir sales 118000

Bad debt losses 2%

Writte off 430

Allowance 3320

Db Bad debt expense_______ 3320

Cr Allowance for bad debt_________________ 3320

Db Allowance for bad debt__ 430

Cr Account Recevaible_____________________ 430

Year end balance___________48000

Cr Account Recevaible_________430

Account receivable__________47570

Allownace for bad debts_______3320

Net account receivable_______44250

5 0

3 years ago