Answer:
Wages of solar panel installers increase in another town and attract workers away from Billy's town.
Explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer and Explanation:
The journal entries are shown below:
On Jan 1
Cash $500,000
To Bond Payable $500,000
(Being the issuance of the bond is recorded)
On Dec 31
Bond Payable $500,000
Loss on redemption $15,000 ($500,000 × 3%)
To Cash ($500,000 × 103%) $515,000
(Being the redemption of the bond is recorded and the remaining balance or we can say balancing figure is debited to loss on redemption)
Answer:
6.0%
Explanation:
Given that :
Marginal income tax rate = 32%
Interest rate before taxes = 8.8%
Annual after-tax rate of return if bond matures in 10 years will be the same as the annual after tax rate of return since the annual rate is constant.
Hence,
Annual after tax rate of return = Interest rate × (1 - tax rate)
Annual after tax rate = 8.8% × (1 - 32%)
Annual after tax rate = 0.088 × (1 - 0.32)
Annual after tax rate = 0.088 × 0.68
Annual after tax rate = 0.05984
= 0.05984 × 100%
= 5.984% = 6.0%
