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Readme [11.4K]
2 years ago
14

Washington Inc. issued $705,000 of 6%, 20-year bonds at 98 on January 1, 2009. Through January 1, 2017, Washington amortized $8,

200 of the bond discount. On January 1, 2017, Washington Inc. retired the bonds at 102 (after making the interest payment on that date). What is the gain or loss that Washington Inc. would report for the retirement of this bond?
A. $20,000 gain
B. $14,100 loss
C. $20,000 loss
D. $14,100 gain
E. None of the above
Business
1 answer:
Mashcka [7]2 years ago
7 0

Answer:D.$14,100 gain

Explanation:

The par value of a bond is $100 when it's issued below the price it's issued at a discount which is a loss to the firm and when it's issued above the par value, it's issued at a premium which is a gain.

The issue of $705,000 means 7050 numbers were issued and retiring it $102 means at a premium of $2 per bond and a total of N14,100 gain.

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The last data-entry clerk stealthily resigned in the middle of an overwhelmingly difficult database conversion project. Identify
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Answer:

The answer is b. Difficult.

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7 1
2 years ago
Without specializing, the total output for both countries after two days would be 48.
vampirchik [111]

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A hedge fund with net asset value of $71 per share currently has a high water mark of $78. Suppose it is January 1, the standard
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Answer:

Answer :The annual incentive fees according to Black Scholes Formular =2.5

Explanation:

a)Find the value of call option using below parameter

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std=42%

time=1

value of call option=15.555

Annual incentive=16% x 15.555=2.5

The annual incentive fees according to Black Scholes Formular =2.5

(b) The value of annual incentive fee if the fund had no high water mark and it earned its incentive fee on its return in excess of the risk-free rate? (Treat the risk-free rate as a continuously compounded value to maintain consistency with the Black-Scholes formula.)

current price (st)=71

Strike price(X)=78

Rf=(e^4%)-1 = 4.08%

std=42%

time=1

value of call option=17.319

Annual incentive=16% x 17.319=2.77

7 0
2 years ago
Unearned Income of Minor Children and Certain Students (LO 6.4) Brian and Kim have a 12-year-old child, Stan. For 2019, Brian an
antiseptic1488 [7]

Answer:

Answer for the question : Stan's tax for 2018 =105+240 = $345.

"Unearned Income of Minor Children and Certain Students (LO 6.4) Brian and Kim have a 12-year-old child, Stan. For 2019, Brian and Kim have taxable income of $52,000, and Stan has interest income of $4,500. No election is made to include Stan's income on Brian and Kim's return. Click here to access the income tax rate schedules and the trust and estate tax rate schedules.a. For purposes of the tax on a child's unearned income, calculate Stan's taxable income.b.Calculate Stan's earned taxable income."

is explained in the attachment.

Explanation:

3 0
1 year ago
Ray Jene earns $900 a week at a Publix supermarket. Ray's payroll deductions are 28%. What is Ray's take-home pay?
kaheart [24]
If Ray earns $900 a week and deductions are 28% Ray's take home pay is:
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If we assume that the deductions of 28% are taken out of the $900 weekly we will multiply 900 by 0.28 = 252. Then subtract 252 which is the deduction amount from the 900 and we end up with take home pay of $648.
7 0
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