Answer:
$14,000
Explanation:
Amount of interest expense = [(Bond issued by 'S' company x 9%) - Amount of
premium x (unsold bonds / Bonds issued)]
= (300,000 x 0.09) - 60000/10 x 200,000/300,000
= (27,000 - 6000) x 0.66667
= 21,000 x 0.66667
= $14,000
24120-2200=21920 to depreciate over 8 yrs. 21920/8=2740/yr. depreciate for 4 yrs (4*2740=10960). 24120-10960 = 13160 remaining to amortize.
13160-2200= 10960 to depreciate over remaining 2 yrs (6 yr total life with 4 yrs already amortized). 10960/2=5480 per yr.
This one is complex so please validate with classmate or teacher
Answer:
A) Outdoor advertising
Explanation:
Outdoor advertising are kind of advertisement that publisize the product of organization. It should be noted that Outdoor advertising refers to billboards along streets and highways, as well as posters in other public locations.
Answer:
15.4%
Explanation:
required initial investment $33,500
annual cash flows $7,400
useful life 15 years, no salvage value
depreciation expense per year = $33,500 / 15 = $2,233.33
simple rate of return = annual incremental net operating income / Initial investment
- annual incremental net operating income = $7,400 - $2,233.33 = $5,166.67
- initial investment = $33,500
simple rate of return = $5,166.67 / $33,500 = 15.4%
Answer:
False
Explanation:
On the contrary, high economic growth may lead to high inflation. Economic growth is indicated by an increase in the value of the gross domestic product GDP. The GDP measures economic growth by calculating the values of all the finished goods and services in a country per period.
Economic growth may be a result of an increase in aggregate demand. The government may institute monetary and fiscal stimulus measures that increase the demand for goods and services. Increased demand results in inflation because consumers will have too much cash, but few goods and services are available. When growth is due to an increase in productivity, inflation is minimal. Inflation is a general increase in prices. Prices usually go up with an increase in economic activities.
