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3 years ago

The market price of a bond issued at a premium is the present value of its principal amount at the market rate of interest:

Business

1 answer:

Goryan [66]3 years ago

5 0

Answer:

D. In addition to the present value of all future interest payments at the market (effective) interest rate

Explanation:

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On january 2, fafnir co. purchased a franchise with a finite useful life of 10 years for $50,000. an additional franchise fee of

skelet666 [1.2K]

The amount should Fafnir report as intangible asset - franchise is -

Purchase value of Franchise = $ 50,000

Life of Franchise = 10 years

Salvage value = $ 0 ( not given)

Since, no other methods of amortization are specifically mentioned, straight line method will be used.

Book value of Franchise = Purchase price - Amortization expenses

Book value of Franchise = $ 50,000 - [ ( $ 50,000 - $ 0) / 10 Years ]

Straight-line depreciation = ( Purchase price - Salvage value) / Number of years

Book value of Franchise = $ 50,000 - $ 5,000 = $ 45,000

The amount should Fafnir report as intangible asset - franchise is = $ 45,000

7 0

4 years ago

Studentka2010 [4]

Answer:

Partial balance sheet of Tamarisk, Inc.

<u>Non Current Assets :</u>

Buildings $1,140,000

Less accumulated depreciation—buildings ($652,000) $488,000

Coal mine $509,000

Less accumulated depletion—coal mine ($107,000) $402,000

Goodwill $421,000

Total $1,311,000

Explanation:

The Items above are Non- Current Assets. Non Current Assets are resources expected to generate economic benefits for a period exceeding 12 months.

8 0

3 years ago

How will a new law mandating an increase in required levels of automobile insurance affect the equilibrium price and equilibrium

Degger [83]

Equilibrium price will fall; equilibrium quantity will fall.

What does Equilibrium price mean?

An Equilibrium price, also known as a market-clearing price, is the consumer cost assigned to some product or service such that supply and demand are equal, or close to equal.

The manufacturer or vendor can sell all the units they want to move and the customer can access all the units they want to buy.

What is Equilibrium quantity?

Equilibrium quantity is when there is no shortage or surplus of a product in the market.

Supply and demand intersect, meaning the amount of an item that consumers want to buy is equal to the amount being supplied by its producers.

Learn more about Equilibrium price and quantity here:

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4 0

1 year ago

At the end of the next four years, a new machine is expected to generate net cash flows of $8,000, $12,000, $10,000, and $15,000

erik [133]

I would say alot of money

7 0

3 years ago

Which of the following institutional investors most likely must spend a target percentage of the portfolio annually?

konstantin123 [22]

Answer: Endowments

Explanation:

The institutional investors that most likely must spend a target percentage of the portfolio annually is the endowments.

Endowment fund refers to the long term fund that is used for perpetual operations and usually set up by colleges or in hospitals

The fund then covers the expenses relating to provision of services for the students. A portion of the endowment is allowed to be use for every fiscal year.

7 0

3 years ago