On June 1, $40,000 of treasury bonds were purchased between interest dates. The broker commission was $600 . The bonds pay interest at 12%, which is paid semiannually on January 1 and July 1 . How much interest revenue will be recorded on July 1?
a. $400
b. $406
c. $2,000
d. $2,400
a
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A company recognizes the need for a new database management system. During the process of purchasing the new system, who is most likely to be concerned with installation timing, and after-sale support?
A) the initiator B) the user C) the decider D) the purchaser
Once a donee or creditor beneficiary has accepted a contract, the original parties:
A. can cancel the contract if the original contract gives them the right to do so. B. can modify the contract without the third party's consent. C. can cancel only monetary contracts. D. can cancel the contract without the third party's consent.
For years one through five, a proposed expenditure of $500,000 for a fixed asset with a 5-year life has expected net income of $40,000, $35,000, $25,000, $25,000, and $25,000, respectively, and net cash flows of $90,000, $85,000, $75,000, $75,000, and $75,000, respectively. The cash payback period is 5 years
Indicate whether the statement is true or false
Which of the following is not an example of a committed fixed cost?
A. Salaries of management personnel. B. Depreciation on buildings. C. Equipment rental costs. D. Outlays for advertising programs. E. Property taxes.