Answer:
c. is considered to be a reduction in the cost of borrowing.
Explanation:
The premium on bond payable arise when the bond payable is issued more than the face value. It is a liability account consist of the credit balance that is presented on the liability side of the balance sheet
Moreover, it is deducted in the borrowing cost and amortized as an interest expense to the bonds life. It is added to the bond payable
Hence, the correct answer is c.
Answer:
<em>Computation of the interest expense using the equation as shown below:
</em>
Interest expense for year 1 = Notes payable * Interest rate
= $100,000 * 10%
= $7,000
Notes payable reduction in Year 1 = $14,238 - $7,000
= $7,238
General journal entry
Item Debit Credit
<em>Notes payable $7,745</em>
Interest expense $6,493
Cash $14,238
Workings
Interest expense = ($100,000 - $7,238) * 7%
= $92,762 * 7%
=$6,493
The present value of the offer is $145,466.83
<h3>What is the present value?</h3>
The first step is to determine the present value of the growing annuity. The formula that would be used is:
x ![[1 - \frac{1 + g}{1 + r} ^{n} ]](https://tex.z-dn.net/?f=%5B1%20-%20%5Cfrac%7B1%20%2B%20g%7D%7B1%20%2B%20r%7D%20%5E%7Bn%7D%20%5D)
Where:
- p = base salary
- r = discount rate
- g = growth rate
- n = number of years
$35,000 / (0.12 - 0.04) = 437,500
1 - (1.04/0.12)^5 = 0.31
0.31 x 437,500 = $135,466.83
Present value = $135,466.83 + $10,000 = $145,466.83
Micro economics is a part of economics that deals with individuals as well as firms behavior in small scale. Macroeconomics is a part of economics that deals with the whole economy's behavior.
Explanation:
<u>Microeconomics</u>
Why do economics major earn more than marketing major?
How does Apple decide how many iPads to produce?
Which company's stocks should your mother buy?
Why does the price of gasoline increase during summer?
<u>Macroeconomics</u>
How much will the economy grow next year?
Why does the unemployment rate increase during a recession?
What happens to price when government increase money supply?
Should the government pass a jobs bill to stimulate the economy?
Answer:
d) all of the above
Explanation:
There should be as more relevant information in data worksheet as better.
