Answer:
Answer is given below.
Explanation:
SOLUTION
a. Calculation of Coupon Payment
Coupon Payment
= Face Value X Coupon Rate
/2
Coupon Payment = 1000*5.5% /2
Coupon Payment = 55 /2= 27.5
Therefore the Coupon Payment is = 27.51
cash flow diagram is attached.
Initial cost = $197,000
Total net accounting income over three years = $18,200+$21,800+$22,900 = $62,900
Average annual accounting net income = $62,900/3 = $20,966.67
Accounting rate of return = Average net annual income / Initial cost = 20,966.67/197,000 = 0.106 = 10.6%
Since Accounting net income is lower than the required discount rate, the project is not viable.
Answer and Explanation:
The journal entries are shown below
1.
On Denver books
Equipment Dr $17,000
Accumulated depreciation $60,000
Loss on sale of equipment $3,000
To Equipment $80,000
(Being equipment recorded)
On Bristol books
Equipment Dr $17,000
Accumulated depreciation $25,000
To Gain on sale of equipment $10,500
To Equipment $31,500
(Being equipment recorded)
2.
On Denver books
Equipment Dr $20,000
Accumulated depreciation $60,000
To Equipment $80,000
(Being equipment recorded)
On Bristol books
Equipment Dr $6,500
Accumulated depreciation $25,000
To Equipment $31,500
(Being equipment recorded)
The deadweight loss from a tax per unit of good will be smallest in a market with inelastic supply and inelastic demand.
The Deadweight loss refers to loss that occurs when supply and demand are not in equilibrium and thus, result in market inefficiency.
Usually, the value of the deadweight loss varies with the demand elasticity and supply elasticity.
So, when the demand or supply is inelastic, the deadweight loss of the taxation will be smaller because the quantity bought or sold varies less with price.
Therefore, the answer is B. because the deadweight loss from a tax per unit of good will be smallest in a market with inelastic supply and inelastic demand.
Learn more about this here
<em>brainly.com/question/13719669</em>
Answer:
Persuasive Advertising
Explanation:
The goal of persuasive advertising is to convince customers that your product is better and different and that they should choose it over any other option. This is different than information advertising which focuses on informing customers not persuading them.
