A corporation issues for cash $9,000,000 of 8%, 30-year bonds, interest payable semiannually. The amountreceived for the bonds will be
a. present value of 60 semiannual interest payments of $360,000, plus present value of $9,000,000 to be repaidin 30 years
b. present value of 30 annual interest payments of $720,000
c. present value of 30 annual interest payments of $360,000, plus present value of $9,000,000 to be repaid in30years
d. present value of $9,000,000 to be repaid in 30 years, less present value of 60 semiannual interest payments of$360,000
a
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The changes in account balances of the Dunedin Corporation during 2014 are presented below: Increase Assets ............................................... $133,500 Liabilities .......................................... 40,500 Common Stock ......................................... 90,000 Additional Paid-In Capital ........................... 9,000 Assuming there are no changes in retained
earnings except for net income and a dividend payment of $19,500, the net income for 2014 should be a. $6,000. b. $13,500. c. $19,500. d. $25,500.
Strickland Corporation has invested in debt securities. Strickland intends to actively buy and sell this investment for profit. This investment is classified as:
A. a controlling influence security. B. a trading security. C. an available-for-sale security. D. a held-to-maturity security. E. a significant influence security.
Chico Company borrowed $40,000 on a four-year, 8% installment note. How will Chico record the issuance of this note?
A.
| Cash | 40,000 | |
| Notes payable | 40,000 |
B.
| Cash | 40,000 | |
| Interest payable | 3,200 | |
| Notes payable | 36,800 |
C.
| Cash | 43,200 | |
| Notes payable | 43,200 |
D.
| Cash | 36,800 | |
| Discount on notes payable | 3,200 | |
| Notes payable | 40,000 |
Mathematically, the utility function for risk adverse individuals is said to be ____ and/or ____
a. decreasing , linear b. decreasing , convex c. increasing , linear d. increasing , concave e. increasing , decreasing