Carla vista co. received proceeds of 5585020 on a 10-year, 8% bonds issued on January 1, 2019. The bonds had a face value of 530000, pay interest annually on December 31, an have a call price of 104. Carla vista uses the straight-line method of amortization. What is the carrying value of the bonds on December 31, 2021

Answers

Answer 1

The bond's carrying value was $489,560 when Carla Vista Company received proceeds of $55,85,020 on a 10-year, 8% bond issued on January 1, 2019.

What is amortization?

Amortization is the process of repaying a debt in equal installments over a period of time.

A portion of each payment is applied to the loan principal, while the remainder is applied to interest.

Computation of Carrying value of Bond:

According to the information given in the case,

First, the premium amount must be computed. This sum is calculated as follows:

Premium Amount = Face value of Bond – Proceeds received

Premium Amount = $530,000 – $558,5020

Premium Amount = -$505,5020

Now it's time to figure out the annual amortization value, which may be done by doing the following:

Annual amortization = Premium Amount/Time period

Annual amortization = -$505,5020/10

Annual amortization = -$505,502

Then, the carrying value of the bond will be:

Carrying value of bond = face value – unamortized discount

Carrying value of bond = $530,000- (-$505,502×8%)

Carrying value of bond = $489,560

Therefore, the carrying value of the bond is $489,560.

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Related Questions

A ____is a business with two of more owners who similar to a sole proprietorship do not have personal liability protect

Answers

Answer:

A partnership

Explanation:

there is unlimited liability

the partners contribute capital and share, profit and losses

it is based on contracts or agreement among the members

Hank wanted to make
$75,000 this year.
Instead, he made made
$60,000.
Calculate the variance.
$[?]

Answers

Explanation:

Based on the given conditions, formulate;

75000- 60000= 15000

Answer:

based on giving terms the answer to this question is 1500

Damien is being relocated to a new city abroad for work, and he is going to need a longer-term hotel stay while he acclimates to the new locale and culture. He wants a space that feels like home, but he also wants access to a grocery shopping service and housekeeping since his time will be focused on his new role. Which Marriott property is most likely to meet his needs?

Answers

Answer:

Marriott Exc Apts


What jobs will increase in demand in the near future?
O Technology, art and service
O Taxi drivers, postal carriers and fast food cooks
O Data entry, door to door sales and electronic equipment assembl
O All of the above

Answers

Technology, art and service

Which action will not protect your credit

Answers

its c that will not protect your credit

what is classification of expenditures and revenues of governmental entities?

Answers

Answer:

Herman Eugene Talmadge (August 9, 1913 – March 21, 2002) was an American politician who served as governor of Georgia for a short period in 1947 and then again from 1948 until 1955 then as U.S. Senator from Georgia from 1957 to 1981.

Explanation:

12. Inflation-induced tax distortions Darnell receives a portion of his income from his holdings of interest-bearing U.S. government bonds. The bonds offer a real interest rate of 4% per year. The nominal interest rate on the bonds adjusts automatically to account for the inflation rate. The government taxes nominal interest income at a rate of 20%. The following table shows two scenarios: a low-inflation scenario and a high-inflation scenario. Given the real interest rate of 4% per year, find the nominal interest rate on Darnell's bonds, the after-tax nominal interest rate, and the after-tax real interest rate under each inflation scenario. Inflation Rate Real Interest Rate Nominal Interest Rate After-Tax Nominal Interest Rate After-Tax Real Interest Rate (Percent) (Percent) (Percent) (Percent) (Percent) 1.5 4.0 8.0 4.0 Compared with higher inflation rates, a lower inflation rate will the after-tax real interest rate when the government taxes nominal interest income. This tends to saving, thereby the quantity of investment in the economy and the economy's long-run growth rate.

Answers

Based on the given rates to Darnell, the nominal and after-tax real interest rates are:

Inflation rate 1.5%;

Nominal rate = 5.5%.After-tax nominal = 4.4%.After-tax real = 2.9%.

Inflation rate 8%;

Nominal rate = 12%.After-tax nominal = 9.6%.After-tax real = 1.6%.

What are the rates when inflation is 1.5%?

Nominal rate:

= Inflation + Real rate

= 1.5% + 4%

= 5.5%

After-tax nominal:

= 5.5% x (1 - 20% tax)

= 4.4%

After-tax real:

= 4.4% - 1.5% inflation

= 2.9%

What are the rates when inflation is 8%?

Nominal rate:

= Inflation + Real rate

= 8% + 4%

= 12%

After-tax nominal:

= 12% x (1 - 20% tax)

= 9.6%

After-tax real:

= 9.6% - 8% inflation

= 1.6%

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Why is it important to understand how the global financial system operates? (5 marks)

Answers

Answer:

becuase in life you need to know how finances work alll over the world

Explanation:

You are on the team of executives at Star Bank. You have been meeting as a team to discuss
the future of the bank, including big picture goals of how to grow the company. What type of
planning is this?

Answers

Strategic planning is the type of planning that involves the meeting on the future of the company and its goals.

What is strategic planning?

This is the type of planning that has to do with the strategic planning of specific business goals in an establishment and how to implement the plans.

This is the way that the company would define the goals that they have and how to achieve their plans.

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Comparable balance sheets are presented below:

Dec. 31, 2015 Dec. 31, 2014

Assets

Cash 1.2 1.9

Accounts Receivable 0.4 0.3

Inventory 1.3 1.0

Property, Plant & Equipmen 6.0 3.0

Less: Accumulated Depreciation (0.8) (0.4)

8.1 5.8

Liabilities & Stockholder's Equity

Accounts Payable 2.6 2.1

Dividends Payable - -

Bonds Payable 4.4 2.8

Common Stock, $1 Par Value 0.2 0.1

Paid-in Capital in Excess of Par Value 3.2 2.2

Retained Earnings (2.3) (1.4)

8.1 5.8

Additional Information:

1. The change in PP&E represent cash expenditures for a new factory

2. There were no disposals of PP&E during the year

3. There were no dividends declared during the year

4. The common stock was issued for cash

5. A review of the income statement noted a gross profit margin of

20% and Research & Development costs of $0.7 for the year

Required:

1. Prepare a statement of cash flows using the indirect method

2. Is the operating cash flow sustainable?

3. What are the major sources and uses of cash?

4. How are the operations being financed? Through earnings or other means?

Do you agree with this strtegy?

5. No dividends were declared. Why?

6. Why might the company be losing so much money? Do you agree with their strategy?

7. What are the risks to the company going forward?

Answers

The example of how to Prepare a statement of cash flows using the indirect method is given in the image attached.

The others are:

Note that when the operating cash flow is aided by profitable operations, it may not be sustainable. e.g. operating cash gotten from an outsized reduction in accounts receivable cannot be kept or handled.

The major sources and uses of cash are:

Operating InvestingFinancing

Operations are being financed via the day to day normal operations that brings income. Example are  cash receipts from revenue and cash shared to pay for expenses.

The risks of a company going forward includes:

Fraudemployee misconductMisappropriations of funds, etc.

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Enumerate the majority of services offered by banks.

Answers

Answer:

Checking accounts.

Savings accounts.

Debit & credit cards.

Insurance*

Wealth management.

If you invest your money today, your future purchasing power will most likely ___.
A. Decrease
B. Increase
C. stay the same
D. go up and down

Answers

Answer:

will most likely increase

Explanation:

because of the interest rate of which the financial institutions has set ... your money will increase

If you invest your money today, your future purchasing power will most likely B. Increase

What Is Purchasing Power?

The worth of a currency is determined by how many goods or services one unit of that currency can be used to purchase. Inflation may cause it to deteriorate over time. This is due to the fact that you may acquire fewer items or services as a result of increased pricing. A currency's buying power is another name for its purchasing power.

When referring to investments, purchasing or buying power refers to the dollar amount of credit that a customer has based on the marginable securities that are currently in their brokerage account.

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how we can improve saving culture​

Answers

Answer:

answer

Here are six ways you can cultivate a savings culture:Here are six ways you can cultivate a savings culture:HAVE A BUDGET.Here are six ways you can cultivate a savings culture:HAVE A BUDGET.CONTRIBUTE MORE TO YOUR RETIREMENT. Stop procrastinating when it comes to retirement planning. ...

The number and characteristics of sellers and buyers is called market structure.

True or False

Answers

The answer is True.

Explanation:

Market structure describes the economics and characteristics of marketing.

1. If there is a change in the price of a good, then the supply of that good will change.

True
False

Answers

Answer:

True

Explanation:

The change in price level changes the supply of goods. When price level increases, producers or suppliers will be willing to produce and supply more. However, when prices reduce, producers or suppliers may decide to supply less because they wont be making much money as they should if the price level did not fall.

Marla made a spreadsheet in Excel showing the projected costs for a concert she was putting on. What can Marla enter into cell A11 to find out how much money is left in her budget and to make sure the cell is updated whenever she changes any of the other costs?

=A2-A4-A6-A8-A10
+A2-A4-A6-A8-A10
=A4-A6-A8-A10+A2
+A4-A6-A8-A10=A2

Answers

Marla will use the formula to find the updated cost.

=A2-A4-A6-A8-A10

Because A2 is budget and A4, A6, A8 and A10 all are expenses. So she has to budget-all expenses.

So option A=A2-A4-A6-A8-A10 is true.

What is a spreadsheet?

A spreadsheet is a computer program that can capture, display and manipulate data arranged in rows and columns. Spreadsheets are one of the most popular tools available with personal computers.

A single spreadsheet can be used as a worksheet to compile data for a purpose, or multiple sheets can be combined to create an entire workbook.

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2. How are surplus and shortage related to equilibrium price?
3. Why is equilibrium price represented by the intersection of the supply
and demand curves in a particular market?
4. Why do changes in demand or supply cause disequilibrium?
5. Why is the market always moving toward equilibrium? in book of economics

Answers

Answer:

1-A surplus exists when the price is above equilibrium, which encourages sellers to lower their prices to eliminate the surplus. A shortage will exist at any price below equilibrium, which leads to the price of the good increasing.

2-The supply curve shows quantity supplied at various prices, and the demand curve shows quantity demanded at various prices, so at the intersection of the two curves, these quantities and prices are equal. Therefore, equilibrium price is represented by the intersection of the supply and demand curves.

3-Changes in demand or supply cause disequilibrium because they create an imbalance between quantity demanded and quantity supplied.

4- The market is always moving towards equilibrium because if the price is too high, there is a surplus and prices tend to fall until the surplus is sold and equilibrium is reached, and if the price is too low, there is a shortage and producers raise prices and increase quantity supplied.

Explanation:

:)

what are the information sources for measuring performance

Answers

Answer:

The most common sources of information for performance measurement are personal observation, statistical reports, oral reports, and written reports.

Slide that brainliest tho

jamal is thinking about buying a duplex

Answers

Answer:

If Jamal is planning on Having another family live in the same house or letting out the second living space that is fine

Explanation:

Jamal could make money that way by having a tenant pay rent. Duplexes are commonly considered as two houses that can operate separately but are connected.

Sam and Dave form an LLC that is taxed just like a partnership or pass through entity. Sam and Dave each own 50% of the
LLC. At the end of the year, the LLC has net income of $100,000. Sam and Dave decide to pay one half of the net income to
themselves as an agreed distribution. The remaining amounts stay in the LLC bank account. As a result
The LLC will pay income and social security tax on $100,000 and Sam and Dave will have to pay a dividend tax of 20% on their
distributions.
The LLC will pay tax on the $100,000 to the IRS as an entity level tax.
Sam will have to pay income and social security tax on $25,000
Dave will have to pay income and social security tax on $50,000

Answers

Based on the fact that Sam and Dave decided to pay themselves half of the net income, Dave will have to pay income and social security tax on $50,000.

What will happen to Sam and Dave?

When an LLC is formed, it is taxed on a pass-through basis which means that its income is treated as income of its partners as sole proprietors.

This means that the $100,000 net income will be treated as income for the Sam and Dave. Both of them will therefore pay income and social security taxes on $50,000 each which will be their share.

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A profit maximizing monopoly's price is

Answers

The profit-maximizing choice for the monopoly will be to produce at the quantity where marginal revenue is equal to marginal cost: that is, MR = MC.

Abigail buys cookies at a local gas station for $2.00 per pack. At the grocery store, she can get 10 packs for $20. Online, they will ship 15 packs to her
house for $30. What is the BEST financial advice you can give Abigail about purchasing these cookies?
ОА.
She should order them online because she will save money.
OB. She can buy them at any of these merchants; the cost is the same.
OC.
She should get them from the grocery store because they are cheaper there.
She should buy them at the gas station as they're the least expensive there.
OD
Reset
Next
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Nublado
O O O c. 1 6
ENG
2:30 PM
5/19/2022
hop

Answers

Abigail can buy the cookies at any of the merchants; the cost is the same. hence, Option B is the correct statement.

What do you mean by financial advice?

The manner of attractiveness withinside the commercial enterprise of advising others with admiration to the making plans and/or the execution of recommendations in respect of selecting, purchasing, or promoting economic merchandise to satisfy investment, threat management, or threat mitigation objectives is referred to as Financial Advice.

Hence, Abigail can buy the cookies at any of the merchants; the cost is the same. Option B is the correct statement.

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In an attempt to improve the staffing process, your hospital has collected data on the four primary recruitment sources for staffing Food Service personnel. The following table presents those findings for the last 12 month time
period.
Recruitment
Source
Number of
Applicants
Screened
Potentially
Qualified
Took and
Passed
Testing
Took and
Passed
Interview
Phase
Accepted
Employment
Offer
One-Year
Survival
Rate
Phase
29
Employee
referrals
50
26
(52%)
25
(50%)
23
(40%)
Newspaper
ads
32
(50%)
52
(25%)
36
(72%)
97
(46%)
26
(60%)
210
(15%)
26
(12%)
36
(17%)
14
(35%)
Walk Ins
40
12
11
18
(45%)
(30%)
(20%)
State
Employment
Agencies
41
11
100
(41%)
21
(21%)
14
(14%)
(11%)
8
(8%)
Total
400
200
120
90
80
68
1. If you could increase the number of applicants from one of the recruitment sources, which should it be?
OEmployee referrals
ONewspaper ads
Owalk-ins
Ostate employment agencies
Ocannot tell from the data given
2. If you decided to drop one of the recruitment sources, which should it be?

Answers

Answer:

State employment agencies

Explanation:

That the answer Plss follow me thanks

In the money market, if the interest rate exceeds the equilibrium interest, there is a surplus of money. How is the surplus eliminated?
A) People buy bonds to rid themselves of the surplus money, bidding up their price and pushing interest rates down.
B) Banks will lend out the surplus, lowering interest rates.
C) The Federal Reserve will destroy currency, reducing the quantity of money.
D) The high interest rate increases the demand for money, eliminating the surplus.

Answers

The answer to your question is (A)

Who decides how much money goes to a particular school?

A: The principal of the school
B: The secretary of the district superintendent
C: The superintendent of the district

Answers

I b e l e i v e it’s B! Have a nice day!

which of the following is an example of revolving credit?

A. A couple obtains a home mortgage
B. A woman borrows a company car
C. A man uses a personal line of credit
D. A teen gets a loan for college

Answers

An example of revolving credit is a man uses a personal line of credit.

What is revolving credit?

Revolving credit is the type of credit that lets the borrower choose how much of the credit to use and when to pay it.

It is a type of credit that does not have a fixed number of payments, in contrast to installment credit.

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Answer:

c) A man uses a personal line of credit

Explanation:

also my mom's an accountant and has a degree for fiance

Principles of Investment
Which characteristic is most imortant in determining an investment's level of risk

Answers

Answer:

demand for investments

Explanation:

Financial institutions are reporting that the rate of spending is declining based on customer data. Which of the following is associated with a decline in spending?
Multiple Choice
economic expansion
economic contraction
employment boom
inflation
O job expansion

Answers

Financial institutions are reporting that the rate of spending is declining based on customer data it is associated with economic contraction.

What is economic contraction?

Economics contraction occurs when the economy for a country is going through a face of reduction or decrease.

The economy is affected and every aspect of business, income is also reducing.

Therefore, Financial institutions are reporting that the rate of spending is declining based on customer data it is associated with economic contraction.

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What is labour mobility

Answers

Answer:

Labour mobility is the ability and willingness of people to shift from one job to another or from one location to another in order to work.

hope this helps!

Yashari’s monthly take-home pay is $1850. What percentage of her paycheck will go toward student loans if she chooses standard repayment? Does that payment amount seem reasonable? Why or why not?

Answers

$1850 was the amount they spent on standard payments

A percentage of her paycheck will go toward student loans if she chooses standard repayment is 10% of the discretionary income.

What is a student loan?

A student loan is referred to as a type of loan facility which is offered by the government to students in order to complete their education and helps them in getting employment opportunities based on knowledge and skills.

When an employee's gross monthly compensation is reduced by taxes, insurance premiums, and other deductions, the remaining money is referred to as take-home pay. The automatic plan selected by the loan system for loan repayment is called the Standard Repayment Plan.

Therefore, if she chooses the standard repayment option, 10% of her discretionary income will be allocated to paying down her student debts.

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