When the effective interest method is used, the amortization of the bond premium
a. increases interest expense each period
b. decreases interest expense each period
c. increases interest expense in some periods and decreases interest expense in other periods
d. has no effect on the interest expense in any period
b
You might also like to view...
?The misery index is the sum of the
A. unemployment rate and the output gap. B. unemployment gap and the output gap. C. ???unemployment gap and the inflation gap. D. unemployment rate and the inflation rate.
If a company's current ratio is 2.2 and the current liabilities are $400,000, then the current assets are:
A) $1,280,000. B) $880,000. C) $420,000. D) $181,818.
The following information is available for a company's utility cost for operating its machines over the last four months.MonthMachine hours Utility costJanuary900 $5,450February1,800 $6,900March2,400 $8,100April600 $3,600Using the high-low method, the estimated total fixed cost for utilities is:
A. $3,300. B. $2,100. C. $6,000. D. $3,600. E. $1,500.
Ashley projects that she can get $170,000 cash per year for 5 years on a real estate investment project. If Ashley wants to earn a rate of return of 10%, what is the maximum that she should pay for the investment? Use Appendix Table 2. (Round your answer to the nearest dollar.)
A. $644,434 B. $121,208 C. $575,826 D. $790,500