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Andreas93
2 months ago
7

On January 1, 2019, Shay Company issues $400,000 of 10%, 12-year bonds. The bonds sell for $391,000. Six years later, on January

1, 2025, Shay retires these bonds by buying them on the open market for $419,000. All interest is accounted for and paid through December 31, 2024, the day before the purchase. The straight-line method is used to amortize any bond discount. 1. What is the amount of the discount on the bonds at issuance
Business
1 answer:
Scilla [3.8K]2 months ago
4 0

Answer:

$9,000

Explanation:

To calculate the discount amount on the bonds at issuance, we can derive it as follows:

= Par value of the bond - issuance price of the bond

= $400,000 - $391,000

= $9,000

Subtracting the bond issuance price from its par value yields the discount at the bond's issuance as shown above

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4 months ago
The future value of $200 received today and deposited at 8 percent compounded semiannually for three years is ________. $380 $15
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3 months ago
Read 2 more answers
Claire and Don are farmers who produce beef and corn. In a​ year, Claire can produce 20 tons of beef or 100 bushels of corn. In
Scilla [3833]

Answer:

Claire handles beef production while Dag focuses on corn

Explanation:

Based on the provided details, it seems reasonable to conclude that for optimizing their overall output Claire handles beef production while Dag focuses on corn. Claire's beef to corn production ratio stands at 1:5, whereas Dag's is 1:6. Therefore, Claire's efficiency in beef production is superior compared to Dag's while Dag excels in corn production over Claire. This is why both should concentrate on their respective strengths.

I hope this clears your doubts. Should you have any further questions, please don't hesitate to ask.

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