At the beginning of 2017, Wallace Corporation issued 10% bonds with a face value of $6,000,000. These bonds mature in the five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $5,558,400 to yield 12%. Wallace uses a calendar-year reporting period. Using the effective-interest method of amortization, what amount of interest expense should be reported for 2017? (Round your answer to the nearest dollar.)

Answers

Answer 1

Answer:

$669,018

Explanation:

The computation of the interest expense reported is shown below:

Date     Interest Payment  Interest       Amortization of   Balance  Book

        (Face Value ×          Expense [B]  Bond Discount                    value

          Coupon Rate                               (A-B)                                      of

            × 1 ÷ 2) [A]                                                               Bonds

02-Jan-17                                                                     $441,600 $5,558,400

30-Jun-17 $300,000      $333,504       $33,504  $408,096      $5,591,904

(6,000,000 ×10% ×1 ÷ 2) ($5,558,400 × 12%   ($441,600 - $33,504)

                                                × 1 ÷ 2)                   (5,558,400 + 33504)

31-Dec-17 $300,000      $335,514

($6,000,000 × 10% ×1 ÷ 2) ($5,591,904 × 12% ×1 ÷ 2)    

The total amount of interest expense is

= $333,504 + $335,514

= $669,018


Related Questions

HELP PLEASE 30 points !

Mary is an agent who works with a direct marketing insurance company. She is more specially known as a(n) ..
A - Broker agent
B- Independent agent
C- Certified agent
D- Captive agent

Answers

Answer:

i say broker agent.......

Answer:

It's D! Captive Agent is the correct answer.

CTSOs are especially helpful for people who are applying for which things? Check all that apply.

Answers

Explanation:

I believe it's for employment, military, college

Answer:

Employment. Military Services. College.

Explanation:

The last five annual dividends for MysteryCorp have been: $1.25, $1.38, $1.49, $1.60, and $1.69. Next year's dividend is expected to be $2. The current stock price is $199 per share. First, calculate the geometric average annual rate of growth based on the historical dividends (taking into account the previous five -- do *not* include next year's expected dividend in this calculation). Your estimate of RE, the cost of equity, is ________%.

Answers

Answer:

Re = 8.79%

Explanation:

annual growth rates:

($1.38 - $1.25) / $1.25 = 0.104

($1.49 - $1.38) / $1.38 = 0.078

($1.60 - $1.49) / $1.49 = 0.074

($1.69 - $1.60) / $1.60 = 0.056

geometric growth rate = ⁴√(1.104 x 1.078 x 1.074 x 1.056) - 1 = ⁴√1.34976 - 1 = 1.0779 - 1 = 0.0779 = 7.79%

P₀ = Div₁ / (Re - g)

$199 = $2 / (Re - 0.0779)

Re - 0.0779 = $2 / $199 = 0.01

Re = 0.01 + 0.0779 = 0.0879 = 8.79%

Cabell Products is a division of a major corporation. Last year the division had total sales of $21,720,000, net operating income of $1,346,640, and average operating assets of $4,778,400. The company's minimum required rate of return is 15%. The division's margin is closest to: Dacker Products is a division of a major corporation. The following data are for the most recent year of operations:
Sales $38,380,000
Net operating income $ 3,758,960
Average operating assets $ 9,900,000
The company's minimum required rate of return 15%
The division's residual income is closest to:
Agustin Industries is a division of a major corporation. Data concerning the most recent year appears below:
Sales
Net operating income
Average operating assets $17,540,000 $ 648,980 $ 4,560,000
The division's return on investment (ROI) is closest to:
Agustin Industries is a division of a major corporation. Data concerning the most recent year appears below:
Sales $ 17,810,000
Net operating income $ 783,640
Average operating assets $ 4,640,000
The division's turnover is closest to:__________.

Answers

Answer:

1. Cabell Product Margin = Net operating income / Sales

Cabell Product Margin = 1346640 / 21720000

Cabell Product Margin = 0.062

Cabell Product Margin = 6.20%

2. Dacker Products Residual income = Net operating income - ( Average operating assets * Minimum required rate of return)

Dacker Products Residual income = 3758960 - (9900000*15%)

Dacker Products Residual income = 3,758,960 - 1,485,000

Dacker Products Residual income = 2,273,960

3. Agustin Return on investment = Net operating income / Average operating assets

Agustin Return on investment = 648980 / 4560000

Agustin Return on investment = 0.142320175

Agustin Return on investment = 14.23%

Agustin Turnover = Sales / Average operating assets

Agustin Turnover = 17810000 / 4640000

Agustin Turnover = 3.838362068965517

Agustin Turnover = 3.84

Recently us dairies struggling to increase milk sale tried to change the way adults thought about chocolate milk the dairies wanted to.

Answers

Reposition how the consumers perceived chocolate milk.

Isa is head of housekeeping services at the Ashworth Hotel, a luxury hotel and resort. Last week, she received 29 customer complaints. A total of 428 guests had stayed in the hotel that week. Given this information, find out the errors per million opportunities. a. 400 errors per million opportunities b. 23,456 errors per million opportunities c. 67,757 errors per million opportunities d. 14,758,620 errors per million opportunities

Answers

Answer:

c. 67,757 errors per million opportunities

Explanation:

The computation of the errors per million opportunities is shown below:

= Customer complaints last week ÷ total guest stayed in that week × 1,000,000

= 29 customers ÷ 428 guests × 1,000,000

= 67,757 errors per million opportunities

Hence, the correct option is c.

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Mohamed income elasticity for good A is equal to -1.5. His current income is Br.40, 000 per year and he buys 200 units of good A annually. If his income falls to Br.36, 000 how many units of good A will he purchase?

Answers

your mom hahahahahahhahaahhaahahjahahahahahhahadmdkuxndzmwcd9oo

Cabal Products is a division of a major corporation. Last year the division had total sales of $12,880,000, net operating income of $837,200, and average operating assets of $2,833,600. The company's minimum required rate of return is 16%.
The division's residual income is closest to:_________.
a) $1,290,576
b) $383,824
c) $837,200
d) $906,752

Answers

your answer will be a ma’am

The fictional country of Anastialia is a small country with rich resources in minerals. In an 8 hr work day it can produce 100 pounds of silver or 50 pounds of copper. If Anastialia decides to produce copper instead of silver it is ignoring the fact that its silver production has a(n)________ to copper.

a. production advantage
b. absolute advantage
c. comparative advantage

Answers

Answer:

c. comparative advantage

Explanation:

As we know that

The one pound of silver would be equivalent to 0.5 pound of copper

And,

one pound of copper would be equivalent to 2 pounds of silver

based on this, there is a comparative advantage with respect to the silver production

Hence, the correct option is c.

Therefore all the other options are incorrect

On January 2, 2014, Indian River Groves began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2015. Expenditures for the construction were as follows: Indian River Groves borrowed $2,200,000 on a construction loan at 12% interest on January 2, 2014. This loan was outstanding during the construction period. The company also had $8,000,000 in 9% bonds outstanding in 2014 and 2015. The interest capitalized for 2014 was:

Answers

Answer:

the expenditures are missing, so I looked for a similar question:

1/2/2014 $400,000 7/1/2014 $1,200,000 12/31/2014 $1,200,000 3/31/2015 $1,200,000 9/30/2015 $800,000

Weighted average expenditures for 2014:

January 1 = $400,000 x 1 = $400,000

July 1 = $1,200,000 x 1/6 = $600,000

December 31 = $1,200,000 x 0 = $0

total = $1,000,000

Since the company borrowed $2,200,000 specifically for this construction project, then capitalized interests = $1,000,000 x 12% = $120,000

Ivanhoe Corporation acquired End-of-the-World Products on January 1, 2017 for $6500000, and recorded goodwill of $1220000 as a result of that purchase. At December 31, 2018, the End-of-the-World Products Division had a fair value of $5540000. The net identifiable assets of the Division (excluding goodwill) had a fair value of $4838000 at that time. What amount of loss on impairment of goodwill should Ivanhoe record in 2018

Answers

Answer:

Ivanhoe Corporation

The amount of loss on impairment of goodwill that Ivanhoe should record in 2018 is:

$518,000.

Explanation:

a) Data and Calculations:

Goodwill on acquisition = $1,220,000

December 31, 2018:

Fair value of Investee (End-of-the-World Products Division) = $5,540,000

The fair value of the net identifiable assets of the Division (excluding goodwill) = $4,838,000

Goodwill = $702,000 ($5,540,000 - $4,838,000)

Impairment loss = $518,000 ($1,220,000 - $702,000)

b) A Goodwill impairment loss is the recognized reduction in the carrying amount of this intangible asset that is triggered by a decline in its fair value.  When the fair value of acquired Goodwill declines below its carrying amount, Ivanhoe Corporation is expected to write off the difference (the impairment loss) in its income statement for 2018.

Why are visually interesting effects, such as WordArt, to be used sparingly? How does understanding your intended audience’s expectations inform how and when you use a visual effect, such as WordArt? Would you approach using WordArt in the same way in a presentation directed to young adults and a presentation directed to business professionals?

Answers

To go out bad so u want have to do anything...

if you cause damage to your apartment, your landlord can

Answers

Answer:

...send you out for vandalizing the property?? i dunno lol

Explanation:

Answer:

you could get evicted

Explanation:

able below shows the marginal revenue and costs for a monopolist. Demand, Costs, and Revenues Price (dollars) Quantity Demanded Marginal Revenue (dollars) Marginal Cost (dollars) Average Total Cost (dollars) $76 100 $76 $25 $139.00 71 200 66 68 103.30 66 300 56 56 87.50 61 400 46 82 86.00 56 500 36 76 84.00 51 600 26 48 78.00 Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign. a. What is the monopolist's profit-maximizing level of output

Answers

Answer:

The profit maximizing output for a monopolist is the output level where marginal cost is equal to marignal revenue.

Explanation:

Price  Q Demanded Marginal Revenue Marginal Cost

$76     100                 $76                         $25

71        200                  66                           68

66       300                  56                           56

61        400                  46                           82

56       500                  36                           76

51        600                  26                           48

Arranging the information in the chart above, we can see that for a quantity demanded of 300 units, and a price of $66, marginal revenue and marginal cost are exactly the same, $56.

Thus, the profit-maximizing level of output is 300 units.

Jeff sells the New York Times Sunday newspaper at a city corner near several churches. He sells each newspaper for $6.50 after purchasing them for $4.00. Any unsold newspaper can be returned to the New York Times for a $0.75 credit. Jeff expects demand on Sunday to be 75, 100, 125, or 150 newspapers and would like to order one of these four quantities from the New York Times. If the Jeff uses the minimax regret criterion, how many newspapers will he order

Answers

Answer:

0

Explanation:

What's the most common reason why the government would stop a
proposed merger?*
to limit consumer choices
O to increase social justice
O to maintain inflation in the economy
to maintain competition in a market

Answers

Answer:

I think its to maintain inflations in the economy (sorry if im wrong)

Explanation:

Answer:

to increase social justice

explain the scope of macro economic.​

Answers

It mainly covers the measure fundamentals which are macroeconomic theories and macroeconomic policies. ... Here the MacroEconomic theories involve economic growth and development, the theory of national income, money, international trade, employment, and general price level.

An important first step in adapting a product to a foreign market is to determine the Group of answer choices personal ethics of individuals in the target market. language problem of the intended market. product's compliancy to irrational beliefs of its potential foreign consumers. regional political parties present in the domestic market. degree of newness of the product as perceived by the intended market.

Answers

Answer:

degree of newness of the product as perceived by the intended market.

Explanation:

As the new product is in the market so the willing of the consumers are to evaluate the production that depends upon the product newness in the market

The other options are incorrect as if the evaluation of the consumers depend upon the irrational beliefs so it would not be intended to purchased

Therefore the last option is correct

hence, the same is to be considered

Novak Company took a physical inventory on December 31 and determined that goods costing $190,000 were on hand. Not included in the physical count were $25,170 of goods purchased from Pelzer Corporation, f.o.b. shipping point, and $21,900 of goods sold to Alvarez Company for $30,030, f.o.b. destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Novak report as its December 31 inventory

Answers

Answer: $237070

Explanation:

The amount that Novak should report as its December 31 inventory will be:

Inventory in hand = $190,000

Add: Goods bought from Pelzer Corporation = $25,170

Add: Cost of goods sold to Alvarez Company = $21900

Total = $237070

The amount that Novak should report as its December 31 inventory will be $237070

If a firm is deciding upon the acceptance of a project with a value of $10,000, and if the client has a good credit history, the firm will most likely use the grid chart in the decision-making process.
a) true
b) false

Answers

Answer:

FALSE

Explanation:

The Decision-Making Process includes Identifying the need for a decision, Determining the outcome of the decision, Identifying all alternative actions, the benefits and consequences of each and Making and Evaluating the decision.

Decision-Making Tools includes the use of decision-making grid to differenciate or separates factors of decision to be made, the use of Gantt chart to shows phases of project to completion and Information technology and others.

The grid chart shows the relationship between input and output documents.

why does this app suck i a way? i looked at this question: The managers want to know how many boxes of 12 cookies can be filled with the 3,258 cookies that have been baked. Fatima starts by subtracting the largest number of boxes she can easily calculate. She knows that 100 boxes of 12 cookies can be put into one crate. How many crates can be filled from the total of 3,258 cookies?

then an expert verified its 3 so i put it in and it said incorrect. am i not getting something or is it maybe incorrect in my platform?

Answers

Answer:

this app is fine, it has helped me a lot

Explanation:

BUT, you shouldnt rely on it all the time, unless you're genuinely struggling on grasping a topic I suggest trying to teach to yourself.

John (45) and Cynthia (46) are married, and they will file a joint return. During the year, they earned investment income consisting of: $200 interest income from a savings account with their local bank, reported on Form 1099-INT. $350 interest income from a certificate of deposit held with another local bank, reported on Form 1099-INT. $100 in dividends from a savings account with a local credit union, reported on Form 1099-INT. $250 interest income from a U.S. Treasury note, reported on Form 1099-INT. $500 tax-exempt interest income from a municipal bond investment, reported on Form 1099-INT. $1,700 in ordinary dividends from a mutual fund investment, reported on Form 1099-DIV. Complete John and Cynthia's Schedule B (Form 1040), Interest and Ordinary Dividends.

Answers

Answer:

                          Calculation of Net taxable income

Particulars                                                        Amount        Amount

Interest income from savings interest                                   $200

Interest income from certificate deposit                                $350

Dividend from saving account with                                        $100

local credit union  

Interest income from us treasury note                                    $250

Tax exempt interest from municipality bond                          $500

Ordinary dividend                                                                     $1,700

Gross total income                                                                    $3,100

Income exempt

Dividend from saving account                           $100

Dividend from treasury note                              $250

Tax exempt interest from municipality bond    $500              $850

Net taxable income                                                                   $2,250

Kazi Ltd. a manufacturer of powder soap wants to double their previous financial year profit which was Sh. 5 Million, through improved sales strategies and aggressive marketing. The following data was provided. p = 320, v = 110, f = Sh. 1.2 Million i) Determine Profit if sales are 35,000 units

Answers

Answer:

the profit in the case when the sale is 35,000 units is 6,150,000

Explanation:

The computation of the profit is as follows:

= (Selling price - variable cost) × number of units sold - fixed cost

= (320 - 110) × 35,000 units - sh. 1.2 million

= 7,350,000 - 1,200,000

= 6,150,000

Hence, the profit in the case when the sale is 35,000 units is 6,150,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered

During March 2019, Virginia Bay Corporation recorded $275,000 of costs related to factory overhead. Virginia Bay's overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $260,000 would be incurred, and 8,400 direct labor hours would be worked. During March, 11,000 hours were actually worked. Use this information to determine the standard overhead rate. (round

Answers

Answer:

$32.74 per DLH

Explanation:

Standard Oh rate as per DLH = Estimated overheads / Estimated DLH

Standard Oh rate as per DLH = $275,000 / 8,400

Standard Oh rate as per DLH = $32.7381

Thus, OH rate per DLH = $32.74 per DLH

how the consumer motivated to purchase product. what are the critaria and decision making​

Answers

Answer:

In plain terms, the consumer motivation is the set of cognitive factors driving a customer's determination to make a single sale. The payment is the ultimate product of a "Purchaser's Process" scheme, a three-stage mechanism consisting of:

1.Awareness.

2.Interest.

Determination 

Which psychographic or lifestyle trend does this study support

Answers

Answer:

where is the study at?

Explanation:

A company is completing its annual impairment analysis of the goodwill included in one of its cash generating units (CGU). The recoverable amount of the CGU is $32,000. Other information related to the CGU is provided below:
Goodwill Patents Assets Total
Historical cost $15,000 $10,000 $35,000 $60,000
Depreciation and 0 3,333 11,667 15,000
amortization
Carrying amount $15,000 $6,667 $23,333 $45,000
12/31
Under IFRS, which of the following adjustments should be recognized in the company's consolidated financial statements?
a) Decrease goodwill by $13,000
b) Decrease goodwill by $15,000
c) Decrease goodwill by $3,250; patents by $2,167; and other assets by $7,583
d) Decrease goodwill by $4,333; patents by $1,926; and other assets by $6,741

Answers

Answer:

a) Decrease goodwill by $13,000

Explanation:

In IFRS, whenever recoverable amount of a cash generating unit is less than the carrying amount, an impairment loss is recognized. After calculating an impairment loss, it is then allocated to the carrying amount of Cash generating unit's goodwill.

Impairment loss in this case is = Total carrying amount - Recoverable amount of CGU = $45,000 - $32,000 = $13,000. Hence, the impairment loss will be allocated to the carrying value of the goodwill, leading to decrease in goodwill by $13,000.

Convertible bonds:_________
a) Provide potential benefits only to the issuer.
b) Provide potential benefits only to the investor.
c) Provide potential benefits to both the issuer and the investor.
d) Provide no potential benefits.

Answers

Answer:

c) Provide potential benefits to both the issuer and the investor.

Explanation:

Convertible Bonds are Bonds that can be converted to Common Stocks at the the option of the investor or the issuer.

They represents the potential voting rights to the investor if they are converted to Common Stocks. This means the investor can take part in decision making of the company.

They also presents benefits to the issuer in that it reduces the financial risk of defaulting interest payments. This is good for the gearing ratio as well and can attract more investors.

15.2 Calculating Flotation Costs: The Wiley Oakley Co. has just gone public. Under a firm commitment agreement, Wiley received $21.39 for each of the 7.75 million shares sold. The initial offering price was $23 per share, and the stock rose to $26.30 per share in the first few minutes of trading. Wiley paid $1,350,000 in legal and other direct costs and $210,000 in indirect costs. What was the flotation cost as a percentage of funds raised

Answers

Answer:

23.16%

Explanation:

net amount of money received by Wliey Oakley = 7,750,000 stocks x $21.39 per stock = $165,772,500

total flotation costs including direct and indirect costs = [($26.30 - $21.39) x 7,500,000] + $1,350,000 + $210,000 = $38,385,000

flotation costs as a percentage of funds raised = $38,385,000 / $165,772,500 = 0.2316 = 23.16%

Kieso Company borrowed $630,000 for five months. The annual interest rate on the loan was 9%. Kieso's fiscal year ends on December 31. Kieso borrowed the $630,000 one month prior to the end of its last fiscal year and paid the $630,000 plus interest back four months into its current fiscal year. How much interest expense, if any, would Kieso report at the end of its last fiscal year and at the end of its current fiscal year

Answers

Answer and Explanation:

The computation of the interest expense is shown below'

The following formula should be used:

= borrowed amount × rate of months × number of months ÷ total number of months

End of last year is

= $630,000 × 9% × 1 ÷ 12

= $4,725

And,

Current fiscal year is

= $630,000 × 9% × 4 ÷ 12

= $18,900

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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The force at which the heart pumps blood is also known as your: a Blood Glucose b Blood Pressure c Blood Sugar d Blood Type Avery is making a necklace for her mothers birthday. She uses 1 1/20 strings of black beads and 1 4/5 more strings of gray beads than black beads. How many strings of gray beads did she use?. Ten times a number increased by four is no more than twenty-five. Answer if u know PLS Which of these is not a human activity that impacts the environment?AtransportationBconstructionCphotosynthesisDmanufacturing The cost of an limited edition figurine starts at $255 and it increases in value by 8% each year. What is the growth or decay rate as a decimal? What is the initial value? Write an exponential model that represents the cost f (t) of the figurine t years after it's bought. After 6 years the figurine's value is ? PLEASE ASAP!!Today, most film editors manually cut and splice the actual film footage once it arrives.O TrueO False read the poem:Come up from the fields father, heres a letter from our Pete,And come to the front door mother, heres a letter from thy dear son.Lo, tis autumn,Lo, where the trees, deeper green, yellower and redder,Cool and sweeten Ohios villages, with leaves fluttering in the moderate wind,Where apples ripe in the orchards hang and grapes on the trellisd vines,(Smell you the smell of the grapes on the vines?Smell you the buckwheat where the bees were lately buzzing?)Above all, lo, the sky so calm, so transparent after the rain, and with wondrous clouds,Below too, all calm, all vital and beautiful, and the farm prospers well.Down in the fields all prospers well,But now from the fields come father, come at the daughters call,And come to the entry mother, to the front door come right away.Fast as she can she hurries, something ominous, her steps trembling,She does not tarry to smooth her hair nor adjust her cap.Open the envelope quickly,O this is not our sons writing, yet his name is signd,O a strange hand writes for our dear son, O stricken mothers soul!All swims before her eyes, flashes with black, she catches the main words only,Sentences broken, gunshot wound in the breast, cavalry skirmish, taken to hospital,At present low, but will soon be better.Ah now the single figure to me,Amid all teeming and wealthy Ohio with all its cities and farms,Sickly white in the face and dull in the head, very faint,By the jamb of a door leans.Grieve not so, dear mother, (the just-grown daughter speaks through her sobs,The little sisters huddle around speechless and dismayd,)See, dearest mother, the letter says Pete will soon be better.Alas poor boy, he will never be better, (nor maybe needs to be better, that brave and simple soul,)While they stand at home at the door he is dead already,The only son is dead.But the mother needs to be better,She with thin form presently drest in black,By day her meals untouchd, then at night fitfully sleeping, often waking,In the midnight waking, weeping, longing with one deep longing,O that she might withdraw unnoticed, silent from life escape and withdraw,To follow, to seek, to be with her dear dead son...................................................................................................................................How does the language of the poem evoke a sense of a bygone time and place, specifically nineteenth century America?The poem's references to places and people are ones that existed in that period, but which do not exist today.The poem's depiction of the mother's sadness indicates a frailty or weakness that was commonly assigned to women in this period.The poem's explanations of the family's reaction suggest an ignorance or an innocence that people today would not exhibit.The poem's descriptions of the farm focus on natural elements, but make no mention of man-made tools or equipment. i) The energy stored in wound watch spring isa) K.Eb) P.Ec) Heat Energyd) Chemical Energy PLEASE HELP ASAPPPP!!??? 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If each free-weight has a mass of 30kg and the barbell has a mass of 20kg, calculate how much power the weightlifter produces when lifting the barbell?