A company issued 5-year, 7% bonds with a par value of $100,000. The market rate when the bonds were issued was 6.5%. The company received $102,105 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is:
A. $6,633.70.
B. $3,500.00.
C. $3,613,70.
D. $7,000.00.
E. $3,289.50.
Answer: E
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A. Penetration pricing B. Status quo pricing C. Price skimming D. Price fixing
Payments on installment notes include accrued interest plus a portion of the amount borrowed (principal).
Answer the following statement true (T) or false (F)
Feedback
a. may be written or spoken, verbal ,or nonverbal. b. tells the listener whether the message is understood. c. may be given in response to a direct request for it. d. all of these choices.
In the fishing boot example, which is NOT true
a. The product portfolio consists of different types of boots and soles that can be matched for different fishing occasions. b. The key platforms are the specific boots that the company sells c. The interface or connection point between the different types of boots and the soles themselves is an essential part of the product line “architecture” d. The most important product platform in the product line is that interface architecture between different boots and different soles.