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1 year ago

5

The selling price of a property is $96,000. this can be financed if the buyer can put 10 percent down and pay a loan origination

fee of 1.5 percent. how much cash must the buyer produce to complete this transaction?

1 answer:

Romashka-Z-Leto [24]1 year ago

4 0

The buyer must produce $10896

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Josh bought a bond with a par value of 1,500 from company ABC. The bond pays twenty annual coupons of 90 and matures at the end

ElenaW [278]

Answer: c

Explanation:

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1 year ago

g On January 1, 2021, Tiny Tim Industries had outstanding $1,000,000 of 11% bonds with a book value of $966,500. The indenture s

pentagon [3]

Answer:

The loss on early extinguishment is $8677.5

Explanation:

First of all,one needs to compute the carrying value of the bond as at the date of the call in order to determine the loss on early redemption.

carrying value =book value+interest expense-coupon payment

book value is $966,500

interest expense=$966,500*13%*6/12=$62,822.50

coupon payment=$1000,000*11%*6/12=$55,000

carrying value=$966,500+$62,822.50-$55,000=$ 974,322.50

Loss on redemption =call price -carrying value of the bond

call price is $983,000

loss on early redemption=$983,000-$974,322.50 =$8,677.5

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1 year ago

Employees earn vacation pay at the rate of one day per month. During the month of June, 10 employees qualify for one vacation da

Yakvenalex [24]

Answer:

B. Debit Vacation Benefits Expense $1,500; credit Vacation Benefits Payable $1,500

Explanation:

Lets consider all the other options to eliminate them from our choice

Option A: The entry provided debits the vacation benefits expenses and credits the prepaid vacation benefits. The liability for the vacation credit earned by the employees during the month needs to be recorded so this is not an adjustment of an advance vacation benefit.

Option C: The required entry has nothing to do with taxes so not relevant.

Option D: The entry is to record the liability for vacations earned by the employees so an expenses has to be recorded.

Option E: The option reduces the liability and reduces the expenses which is against the requirement of the question

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1 year ago

Malcolm purchased an old convenience store, and after renovations will open a small vegan grocery. He paid $517,000, of which $4

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Answer:

amount $524,000 represent the Depreciable basis

Explanation:

given data

paid = $517,000

building = $417,000

renovations cost = $107,000

amount = $524,000

to find out

What does the amount $524,000 represent

solution

here amount $524,000 represent the Depreciable basis

because Depreciable basis is the acquisition cost of investment + renovations .........................1

Depreciable basis amount = $417,000 + $107,000 = $524,000

so here is the investment is depreciable basis

so that we can say that amount $524,000 represent the Depreciable basis

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1 year ago

Forte Co., had 3,000 units of work in process on April 1 that were 60% complete. During April, 11,000 units were started and as

Semmy [17]

Answer:

b. 10,000.

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$\begin{array}{ccc}Starting\ n^o\ of\ units&3,000\\Units\ started\ in\ April&11,000\\Units\ not\ completed\ in\ April&(4,000)\\Units\ completed\ in\ April&10,000\end{array}$

10,000 units were completed during April.

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2 years ago