When corn prices soared, hog farmers used less corn to feed their pigs. The hog farmers showed a decrease in their:

nuary 1, Campanella Inc. issued $4,000,000, 8% bonds for $3,756,000. The market rate of interest for these bonds is 10%. Interes

olasank [31]

Answer:

$188,400

Explanation:

Data provided in the question:

Value Bonds issued = $4,000,000

Amount for which bonds issued = $3,756,000

Thus,

Bond discount at the time of issue = $4,000,000 - $3,756,000

= $244,000

Interest = 8%

Interest payable = Value Bonds issued × Interest

= $4,000,000 × 8%

= $320,000

Market rate of interest = 10%

Therefore,

Interest expense = $3,756,000 × 10%

= $375,600

Thus,

Discount amortized = Interest expense - Interest payable

= $375,600 - $320,000

= $55,600

Therefore,

At the end of the first year, Campanella should report unamortized bond discount

= Bond discount at the time of issue - Discount amortized

= $244,000 - $55,600

= $188,400

3 0

3 years ago

We will follow-up the basic perpetuity with a delayed perpetuity. Watch the Chapter 5 Part 2 video for an example of a delayed p

maria [59]

Answer:

At the end of year 4 (one year before the first cash flow)

Explanation:

According to the present value of perpetuity concept here we divided the predicted cash flows by the rate of that period by calculating this it provides the present value that is prior to the cash flow now if we want for more years so we should have to discount over that time period

Since in the given situation the starting of the cash flows is from the ending of year 5 therefore the timeline would be at the closing of year 4 i..e one year prior to the first cash flow

4 0

3 years ago

Select the correct answer.

alexira [117]

Answer:

Jessica calls her colleagues informing them about her new bakery business.

Explanation:

5 0

2 years ago

In 1932, the u.s. government imposed a two-cent tax on checks written on deposits in bank accounts. this action would be expecte

Inessa05 [86]

In 1932, the u.s. government imposed a two-cent tax on checks written on deposits in bank accounts. this action would be expected to increase the currencyâ€“deposit ratio and decrease the money supply. Tax are basically meant to defers the writing of checks. Hence people will be unwilling to pay tax and does not want to write check which will increase their bank balance and hence currency deposit ratio will rise and money supply will decrease in the economy.

8 0

3 years ago

Curry Seasonings has a patented technology for finely grinding spices while maintaining flavor. This has allowed the company to

VLD [36.1K]

Answer:

Run a recoverability test and then a fair value test.

Explanation:

Business assets with a loss of value are subject to impairment tests to assess and identify the magnitude of the loss.

Measuring the magnitude of the loss requires two steps:

Performing a recoverability check is to decide whether an impairment loss occurred by determining whether the future value of the undiscounted cash flows of the asset is less than the asset's book value. If the cash flow is less than the value of the book, the loss will be assessed.
Measure the cost of damage by measuring the difference between the book value and the asset's market value.

4 0

3 years ago