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2 years ago

Consider again the price control described in the last question. Let's assume that the price control

1 answer:

3 0

If it is a binding price floor, when the law is repealed, quantity demanded increases and quantity supplied decreases.

If it is a binding price ceiling, when the law is repealed, quantity demanded decreases and quantity supplied increases.

<h3>What is a price floor and a price ceiling?</h3>

A price floor is when the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.

Price ceiling is when the government sets the maximum price for a product. It is binding when it is set below equilibrium price.

To learn more about price floor, please check: brainly.com/question/26551616

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On January 1, Parson Freight Company issues 7%, 10-year bonds with a par value of $2,000,000. The bonds pay interest semiannuall

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Answer:

The correct option is Debit Cash $1,864,097; debit Discount on Bonds Payable $135,903; credit Bonds Payable $2,000,000.

Explanation:

This question is an instance of bonds issued at a discount. This happens when a bond is issued below the face value of the bond and also happens when the coupon rate on the bond payable is less than the market rate.

The face value of the bond payable is $2,000,000 while the market value is $1,864,097, so there is a discount of $2,000,000 - $1,864,097 = $135,903 on the bond payable, which is to be amortized over the life of the bond payable.

So, the appropriate journals to record this transaction is as provided above.

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3 years ago

A married couple filing a joint tax return with combined income under $40,000 both contribute to their self-directed IRAs. Which

serious [3.7K]

Answer:

The answer is: D) growth mutual funds

Explanation:

Since the couple doesn't have that much money to invest and they probably can't afford high investment risks, my best advice would be to invest in mutual funds. Mutual funds provide diversified investments which are generally low risk and long term.

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2 years ago

What organization is charged with developing policies to protect u.s. transportation, especially in airport security and the pre

bogdanovich [222]

Department of transportation.

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3 years ago

A company issues $16200000, 5.8%, 20-year bonds to yield 6% on January 1, 2020. Interest is paid on June 30 and December 31. The

bekas [8.4K]

Answer:

The amount of interest expense which will be recognized in 2020 is $949,681.45.

Explanation:

The following are given in the question:

Bond value = $16200000

Bond interest rate = 5.8%

Proceed from bond = $15825541

Yield rate = 6%

The amount of interest expense which will be recognized in 2020 can now be calculated as follows:

Interest expense for January 1, 2020 to June 30, 2020 = Proceed from bond * Yield rate * (6 / 12) = $15825541 * 6% * (6 / 12) = $474,766.23

Discount amortized during first 6 months = Interest expense for January 1, 2020 to June 30, 2020 - (Bond value * Bond interest rate * (6 / 12)) = $474,766.23 - ($16200000 * 5.8% * (6 / 12)) = $474,766.23 - 469,800 = $4,966.23

Interest expense for July 1, 2020 to December 31, 2020 = (Proceed from bond + Discount amortized during first 6 months) * Yield rate * (6 / 12) = ($15825541 + $4,966.23) * 6% * (6 / 12) = $474,915.22

Interest expense to be recognized in 2020 = Interest expense for January 1, 2020 to June 30, 2020 + Interest expense for July 1, 2020 to December 31, 2020 = $474,766.23 + $474,915.22 = $949,681.45

Therefore, the amount of interest expense which will be recognized in 2020 is $949,681.45.

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2 years ago

Show your work and explain in a full sentence how 4 2-6 is equivalent to 3 8-6.

klemol [59]

Answer:

$4\frac{2}{6} = 3\frac{8}{6} = \frac{26}{6}$