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egoroff_w [7]
2 years ago
8

Appling Enterprises issued 8% bonds with a face amount of $400,000 on January 1, 2021. The bonds sold for $331,364 and mature in

2040 (20 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30 and December 31. Appling determines interest expense at the effective rate. Appling elected the option to report these bonds at their fair value. The fair values of the bonds at the end of each quarter during 2021 as determined by their market values in the over-the-counter market were the following:
March 31 $560,000
June 30 $540,000
September 30 $535,000
December 31 $542,000

General (risk-free) interest rates did not change during 2021.

Required:
a. By how much will Appling’s comprehensive income be increased or decreased by the bonds (ignoring taxes) in the March 31 quarterly financial statements?
b. By how much will Appling’s comprehensive income be increased or decreased by the bonds (ignoring taxes) in the June 30 quarterly financial statements?
c. By how much will Appling’s comprehensive income be increased or decreased by the bonds (ignoring taxes) in the September 30 quarterly financial statements?
d. By how much will Appling’s comprehensive income be increased or decreased by the bonds (ignoring taxes) in the December 31 annual financial statements?
Business
1 answer:
lyudmila [28]2 years ago
8 0

Answer:

sry I just wanted the points I'm in middle school so I don't know this stuff either but can you give free brainlyest I'm soo close to my next rank I'd really appreciate it if you would

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You are a dual income, no kids family. You and your spouse have the following debts (total): mortgage, $290,000; auto loan, $15,
aleksley [76]

Answer:

Total Insurance need          $166,500

Explanation:

Life insurance [DINK method]

Amount mortgage loan (half)  $145,000  

Auto loan(half)                   $7,500  

Credit card balance(half)  $2,000  

Other debts(half)               $4,000  

Funeral cost                          $8,000  

Total Insurance need          $166,500

7 0
2 years ago
The participation of women in the U.S. labor force has risen dramatically since 1970. True or False: This rise likely increased
Nimfa-mama [501]

Answer:

Part 1: The correct option is False.

Part 2: The correct option is False.

Explanation:

<em>For the first Question</em>

The correct answer is False as GDP has increased due to women participation in workforce.

<em>For the second Question</em>

The correct answer is False as the change in measure of well being is less than the change in GDP.

5 0
2 years ago
Drogo, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 14 years to maturity that is qu
just olya [345]

Answer:

a. 7.30%

b. 4.745%

Explanation:

For computing the pretax cost of debt we have to applied the RATE formula i.e to be shown in the attachment below:

Given that,  

Present value = $1,000 × 106% = $1,060

Assuming figure - Future value or Face value = $1,000  

PMT = 1,000 × 8% ÷ 2 = $40

NPER = 14 years × 2 = 28 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after applying the above formula

a. The pretax cost of debt is

= 3.65%  × 2

= 7.30%

b. And, the after tax cost of debt would be

= Pretax cost of debt × ( 1 - tax rate)

= 7.30 % × ( 1 - 0.35)

= 4.745%

4 0
3 years ago
Two 1000 dollar face value bonds are both redeemable at par, with the first having a redemption date 3 years prior to the redemp
finlep [7]

Answer:

$ 915.71  

Explanation:

In order to determine the second bond price we need to determine the number of years to maturity of the first bond using nper formula in excel.

=nper(rate,pmt.-pv,fv)

rate is the semiannual interest rate of 6% (12%*6/12)

pmt is the semiannual interest=$1000*8.3%*6/12=$41.50  

pv is the current price at $813.04

fv is the face value of $1000

=nper(6%,41.50,-813.04,1000)= 16.00  

The years to maturity=16/2=8 years

The years to maturity of second bond=8+3=11 years

price of second bond=-pv(rate,nper,pmt,fv)

rate is 6%

nper is 11 years multiplied by 2= 22

pmt =5.3%*$1000=$53

fv is $1000

=-pv(6%,22,53,1000)=$915.71  

5 0
3 years ago
Read 2 more answers
The firm receives an average of $20,000 in checks per day. The weighted average delay in clearing the checks received is 3 days.
katrin [286]

Answer:

<u>$26000</u>

Explanation:

from the question;

check per day; 20000

delay: 3 days

checks to pay suppliers; 17000

clearing time 2 days

<u>we first calculate collection flaot:</u>

collection flaot = average amount of check x outstanding days

= 20000 x 3

= 60000

now we have to calculate <u>disbursements float:</u>

average amount of check x days to clear

= 17000 x 2

= 34000

with these two values we can get the net float

= collection flaot - disbursements float

= 60000 - 34000

= <u>$26000</u>

5 0
3 years ago
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