Answer and Explanation:
The journal entries are shown below:
On Jan 1
Cash $340,000
Bonds payable $340,00
(Being the bond payable is issued for cash)
For recording this we debited the cash as it increased the assets and credited the bond payable as it also increased the liabilities
On Dec 31
Interest expense ($340,000 × 8%) $27,200
To Cash $27,200
(Being the interest expense for year 1 is recorded)
For recording this we debited the interest expense as it increased the expenses and credited the cash as it decreased the assets
On Dec 31
Interest expense ($340,000 × 8%) $27,200
To Cash $27,200
(Being the interest expense for year 1 is recorded)
For recording this we debited the interest expense as it increased the expenses and credited the cash as it decreased the assets
Answer:
$50,500
Explanation:
The investment treasury bonds account must be debited by $50,500 which includes the face value of the bonds ($50,000) and the broker's commission ($500). Investment accounts only record the purchase price of the bonds, they do not record any accrued interests.
Answer:
(A) $1,055.35 (B) $2,180.53 (C) $780.07 (D) $412.08.
Explanation:
The tenor of the bond is 27 years i.e. (27 * 2=) 54 periods of 6 months each (n).
Face Value (F) = $1,000
Coupon (C) = 6% annually = 3% semi annually = (3% * 1000 face value) = $30.
The Present Value (PV) of the Bond is computed as follows.
PV of recurring coupon payments + PV of face value at maturity
= 
A) Yield = 5.6% annually = 2.8% semi annually.
= 830.25 + 225.10
= $1,055.35.
B) Yield = 1% annually = 0.5% semi annually.
= 1,416.64 + 763.89
= $2,180.53.
C) Yield = 8% annually = 4% semi annually.
= 659.79 + 120.28
= $780.07.
D) Yield = 15% annually = 7.5% semi annually.
= 391.95 + 20.13
= $412.08.
Answer:
A. $6000 ordinary income on sale of a creative asset by the creator of the asset.
B. $4000 ordinary income on the sale of inventory.
C. $35000 capital gain on sale of a capital asset. (which is a non depreciable business personality).
Explanation:
The taxpayer sold a painting to Reller Gallery for $6000. So, the tax payer amount and the character of tax payer gain or loss is as follows:
A. $6000 amount realized minus zero basis is equal to $6000 ordinary income on sale of a creative asset by the creator of the asset.
Reller Gallery sold the painting purchased by from Kara to a regular customer, Lollard Inc. for $10000. So, the tax payer amount and the character of tax payer gain or loss is as follows:
B. $10000 amount realized minus $6000 cost basis is equal to $4000 ordinary income on the sale of inventory.
Lollard Inc., the tax payer, was the regular customer that purchased the painting from the Reller Gallery. Lollard showed the painting in the lobby of its corporate headquarters until it sold "Shenandoah Skies" painting to a collector from Dallas. Where the collector paid $45,000 for the painting. So, the tax payer amount and the character of tax payer gain or loss is as follows:
C. $45000 amount realized minus $10000 cost basis is equal to $35000 capital gain on sale of a capital asset. (which is a non depreciable business personality).
The following is true of copyright law : It protects original, creative expression.
<h3>
What is Copyright ?</h3>
Copyright (or author's proper) is a prison time period used to explain the rights that creators have over their literary and inventive works. Works protected through copyright variety from books, music, paintings, sculpture, and films, to laptop
<h3>What is Copyright laws?</h3>
Copyright is a federal law. It is Title 17 of the United States Code. Copyright is the right of authors to control the use of their work for a limited period of time.
Copyright laws can be described as those laws which are useful for the protection of the original expression of an idea. Copyright laws are laws which are used to securely protect literary works, musical works, artistic works, as well as educational properties etc. The law does not offer protection from an idea. What it protects is the expression of that particular original idea. This means that another work could be done that is based on the same idea as a first work but this second work is not an infringement on the first.
Learn more about copyright law on:
brainly.com/question/24205575
#SPJ4
