Answer:
The price of the bond will be $879
Explanation:
Price of the bond is the present value of all cash flows of the bond. Price of the bond is calculated by following formula:
According to given data
Coupon payment = C = $1,000 x 6.2 = $62 annually = $31 semiannually
Number of periods = n = 2 x 8 years = 16 periods
Current Yield = r = 8.3% / 2 = 4.15% semiannually
Price of the Bond = $31 x [ ( 1 - ( 1 + 4.15% )^-16 ) / 4.15% ] + [ $1,000 / ( 1 + 4.15% )^16 ]
Price of the Bond = $31 x [ ( 1 - ( 1 + 0.0415)^-16 ) / 0.0415 ] + [ $1,000 / ( 1 + 0.0415 )^16 ]
Price of the Bond = $31 x [ ( 1 - ( 1.0415)^-16 ) / 0.0415 ] + [ $1,000 / ( 1.0415 )^16 ]
Price of the Bond = $521.74 + $357.26 = $879
Answer: $27,864
Explanation:
The amount that should be recorded as other comprehensive income is the fair value less the sales price and the amortized premiums to reflect the true value of the investment,
= 1,164,000 - 1,129,896 - 3,048 - 3,192
= $27,864
$27,864 is the amount Crane Company should report as other comprehensive income and as a separate component of stockholders’ equity.
Answer:
A. $80
B. $795
C. $0
Explanation:
Only expenses that can be directly attributed to the business are deductible.
Personal expenses will not be deductible.
A. Here the only deductible amount is the legal fees of $80. The speeding will not be charged to the business because it was as a result of personal negligence. The legal fees affect the business because the speeding related to a business asset.
B. Only the amount paid to reserve a spot will be deductible because it relates to expenses for the business to make profit. The money she spent on her children is a personal expense.
C. There is no deductible here. These activities were of a personal nature and in no way related to the operations of the business of operating the food truck.
Answer:
Instructions are below.
Explanation:
Giving the following information:
The marketing manager believes that increasing advertising costs by $74,000 in 2020 will increase the company’s sales volume to 12,700 units.
<u>We weren't provided with enough information to solve the requirement. But, I will provide the general structure:</u>
<u></u>
Sales= (number of units*selling price per unit)=
Total variable cost= (total variable cost per unit*number of units)=
Contribution margin=
Fixed costs= (fixed costs + incremental fixed costs)=
Net operating income
<u>If we want to determine the effect on income without an income statement:</u>
Effect of income= incremental units*contribution margin - incremental fixed costs
Contribution margin= selling price - unitary variable cost
Answer:
$867,000
Explanation:
Assets are economic resources controlled by the entity as a result of past events from which cash is expected to flow into the business.
The Amount of Total Assets Available is calculated as follows:
Beginning Balance $860,000
Equipment Acquired $7,000
Supplies Inventory $3,600
Cash payment for Supplies ($3,600)
Cost of Land sold ($16,000)
Cash Proceeds from the sale of land $16,000
Total Assets $867,000
