Answer:
The correct answer is option (B).
Explanation:
According to the scenario, the given data are as follows:
For Jan.1,2020 value = $626,400
Interest rate = 7%
So, we can calculate the amount of bond interest expense by using following formula:
Interest Expense = Carrying Value × Market Interest Rate
By putting the value of following
Interest expense = $626,400 × 7%
= $626,400 × 0.07
= $43,838
Hence, the amount of bond interest expense to be recognized on December 31, 2020, is $43,838.
To… help protect investors from fraudulent financial reporting by corporations
Answer:
A series of activities that transform inputs into products that customers value.
Explanation:
A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks, etc.
The core benefit of a product can be defined as the basic (fundamental) wants or needs that is being satisfied, met and taken care of when a customer purchase a product.
Hence, the term that refers to the first level of a product, which depends on the customer value it generates is generally referred to as a core benefit. For example, a hotel provides a comfortable and convenient bed to spend the night (sleep) when you travel for a vacation.
On a related note, a value chain refers to the idea that a company is a series of activities that transform inputs into products that customers value.
Answer:
This leads to a reduction in net income
Explanation:
Manufacturing overheads refer to those costs which indirectly relate to a good's production. Examples of manufacturing overheads would include depreciation charged on equipments used for production, rent of the factory wherein production takes place.
The effect of recognition of $400 of estimated manufacturing overheads would be reduction in net income since their recognition raises the cost of production which reduces gross profit. Consequently this would reduce the net income.
