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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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8 0
1 year ago
The resource-based view of global business differs from the institution-based view of global business in that the resource-based
erastova [34]

Answer:

Focuses on the internal strenghts of the firm

Explanation:

To understand difference, it is better to start with definicions of each of the concepts.

So, Resource based view focuses on firms's internal resources and capabilities and Institution based view suggests that the success and failure of firms are affected by institutions, such as regulations, laws, ethics, cultures and norms

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3 years ago
A project has cash flows of -$152,000, $60,800, $62,300, and $65,000 for years 0 to 3, respectively. The required rate of return
Blababa [14]

Answer:

c. 11.32; reject

Explanation:

The IRR is the rate at with net present value equals zero.

-152,000 + \frac{60,800}{1+IRR} +\frac{62,300}{(1+IRR)^{2} } +\frac{65,000}{(1+ IRR)^{3} } = 0

\left[\begin{array}{cc}Period&Cash Flow\\0&-152,000\\1&+60,800\\2&+62,300\\3&+65,000\\4&0.113237029\\\end{array}\right]

To solve it you use excel or a financial calculator:

0.1132370

Because the IRR is lower than minimun aceptable rate of return, the project should be rejected.

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