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3 years ago

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

Business

1 answer:

zzz [600]3 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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Bryce Corporation has pretax accounting income of $100,000. Bryce has interest on municipal bonds of $7,000. Depreciation for ta

Ket [755]

Answer:

$90,000

Explanation:

It is given that :

The pretax accounting income of Bryce Corporation 100,000

The interest on the municipal bonds - 7,000

The depreciation - 5,000

The difference in bad debt expense (3000-1000) +2,000

So the total income of Bryce Corporation $ 90,000

4 0

3 years ago

In the sample scenario, what does this mean about the elasticity of wheat in relation to supply?

Xelga [282]

A- Wheat is relatively inelastic.

7 0

4 years ago

Read 2 more answers

The government tax for a sole proprietorships and a partnership is classified under

guapka [62]

Answer:

the answer is personal income

7 0

3 years ago

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Mays Corp. reported free cash flows for 2018 of $491 million and investment in operating capital of $321 million. Mays Corp. inc

Anon25 [30]

Answer: $975 million

Explanation:

Given the above details, we can solve for Earnings Before Tax and Interest with the following formula,

Operating Cash Flow = EBIT – Taxes on EBIT + Depreciation

Making EBIT the subject would turn it to be,

EBIT = Operating Cash Flow + Taxes on EBIT - Depreciation

We have all of the above except the EBIT and Operating Cash Flow.

Luckily we can solve for the Operating Cash Flow with the details given using,

Operating cash flow = Free Cash Flow + Investment in operating capital

Therefore,

= $491 million + $321 million

= $812 million

Operating cash flow is $812 million

Plugging it into the original formula we have,

EBIT = Operating Cash Flow + Taxes on EBIT - Depreciation

EBIT = $812 million + $309 million - $146 million

EBIT = $975 million

Earnings before Taxes and Interest is $975 million.

If you need any clarification do react or comment.

5 0

3 years ago

During Year 5, Tedd Co. became involved in a tax dispute with the IRS. At December 31, Year 5, Tedd's tax advisor believed that

kkurt [141]

Answer:

$400,000

Explanation:

Since at December 31, Year 5, Tedd's tax advisor believed that an unfavorable outcome was probable. And a reasonable estimate of additional taxes was $400,000 but could be as much as $600,000.

Although after the Year 5 financial statements were issued, Tedd received and accepted an IRS settlement offer of $450,000.

Tedd should have included an amount of $400,000 as accrued liability in its December 31, Year 5 balance sheet

The reason is that according to the International Financial Reporting Standards, a PROVISION must be made as long as the conditions below were obtainable at year end.

- Existing Condition (which in this case is the tax dispute with the IRS)

- Probable Cash Outflow (which Tedd's Tax adviser confirmed)

- Reliable Estimate of Outflow ( which the scenario stated ''A reasonable estimate of additional taxes was $400,000'')

Hence, such 'reasonable estimate is the appropriate amount for inclusion in the financial statements.

5 0

3 years ago