Formulate a linear programming model to find the best investment strategy for this client. (Assume N is the amount invested in the internet fund project and B is the amount invested in the Blue Chip fund. Express the amounts invested in thousands of dollars.)

Answers

Answer 1

Answer:

The appropriate answer is "N, B >= 0". A further explanation id provided below.

Explanation:

According to the question,

The linear programming model seems to be formulated as:

⇒ \(Max \ 0.07 \ N+0.06 \ B\)

Now,

⇒ \(N+B<=85\)

           \(N<=55\)

⇒ \(6N+4B<=410\)

          \(N,B>=0\)

Thus, the above is the correct answer.


Related Questions

Select the correct answer.
Restaurant supply companies handle deliveries of foods and goods to restaurants.
ОА.
True
OB.
False

Answers

Answer:

True

Explanation:

I took the test and this is the right answer. :-)

#2 - Explain how this concept could help in "decreasing econonmic inequality" and "closing the racial wealth divide." Do you agree / disagree that something like this
could help?

Answers

"Decreasing economic inequality and closing the racial wealth divide means creating saving pathways for low-income households to build wealth," said Gary Cunningham, CEO and president of Prosperity Now, a nonprofit that supports the legislation, in a statement. "Matched savings programs can incentivize working families to boost their savings and get on a wealth-building path through opportunities for higher education, work and homeownership."
- I hope this help

what is pizza recipe

Answers

Answer:

Dough, sauce, cheese, garlic butter for the crust, if you wanna get fancy a dash of olive oil when its baked, and your ingredients

Explanation:

Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current year, ABC has net income of $287,000 after deducting Robert's $86,100 salary. In addition to his compensation, ABC pays Robert dividends of $200,900.
a. What is Robert's qualified business income?
b. Would your answer to part (a) change if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $181,050?

Answers

Answer:

A. $287,000

B. $192,050

Explanation:

a. Based on the information givenwe were told that company ABC had net income of the amount of $287,000 after deducting Robert's salary of the amount of $86,100 which therefore means that ROBERT'S QUALIFIED BUSINESS INCOME will be the amount of $287,000.

b. Calculation to determine whether your answer to part (a) would change if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $181,050

Based on the information given the amount of $192,050 will be the additional amount of salary that can be deducted which is Calculated as:

=[$287,000 - ($181,050-$86,100)]

=$287,000-$94,950

=$192,050

What is one advantage corporations have over other types of businesses?

A. Corporations limit risk and liability for shareholders.

B. Corporations are the simplest businesses to get started.

C. Corporations have few government regulations.

D. Corporations allow one person to keep all profits.

Answers

Answer:

A. Corporations limit risk and liability for shareholders.

Explanation:

have the limited liability feature that distinguishes the business liabilities from owners. The benefit of having limited liability is that it protects the shareholders' properties from being interfered with should the company fail in meeting its obligations.

The law limits the risk of shareholders of a corporation up to the level of share contribution. In case of liquidation and the company's assets are not sufficient to cater to the liabilities, the shareholder's losses are limited to the amount of capital contribution.

Answer:

A. Corporations limit risk and liability for shareholders.

Explanation:

Which statement best describes what a project manager controls?
the overall choice of which work becomes a project
the overall deadline when a project is due
the overall resources allocated for a project
the delegation of responsibilities in a project

Answers

Answer:

I believe it’s the delegation of resources

Explanation:only other logical choice is delegation of responsibilities but that’s up to the boss or who assigned the project in the first place

The statement that best describes what a project manager controls is the delegation of responsibilities in a project.

Who is a project manager?

A project manager refers to the person who has the responsibility of planning and executing a project.

The delegation of responsibilities in a project is the best statement that describes what is controlled by the project manager.

Therefore, D is the correct option.

Learn more about the Project manager here:

https://brainly.com/question/15404120

#SPJ2

Which of the following is not the reason for writing a business report

Answers

Entertainment is not the reason for writing a business report.

A business is defined as a company or enterprising entity engaged in commercial, industrial, or expert sports. corporations may be for-income entities or non-profit corporations. enterprise types vary from restrained liability groups to sole proprietorships, organizations, and partnerships.

Businesses assist society first thru the distribution of products and services which are vital for survival. furthermore, they create employment possibilities that help individuals within society earn earnings to have the funds for their wishes.

Learn more about business here: https://brainly.com/question/26106218

#SPJ1

define mortgage- backed securities.​

Answers

Answer: Mortgage interest is a loan.

Explanation:

Mortgage-backed securities, called MBS, are bonds secured by home and other real estate loans. They are created when a number of these loans, usually with similar characteristics, are pooled together.

jane found classified information in breakroom. What is first action

Answers

Answer:

Secure the information in a GSA-approved security container

consider the exchange rate between u.s. dollar and new zealand dollar: usd/nzd. if the exchange rate changed from 1.40 to 1.47 (us$1=1.47NZ$), and inflation was 6.2% in the U.S and 4.9% in New Zealand, then the real exchange rate increased by___ percent

Answers

The currency rates are updated often in the converter below, and it is simple to use.

exchange rate for 9 is 1.4. Us inflation equals 6.27. New Zealand

Therefore, Mak 27 = 2 = 4 97, 1.049 2.4x 1.062 = 0.411, and 92 17 2 where 92 = 1 47, 1.049 2 47 x 1.062 = 0.399.

Change in real exacharge is therefore rak 2.91.

So the real exchange rate went up by 2.9%.

What does a dollar currently trade for in Zambia?

17.553863 ZMW are equivalent to one USD. Dec. 16 at 07:30 UTC

What does $1 US cost in Jamaica?

1 USD to JMD = 153.2247, Live Dollar to Jamaican Dollar Exchange Rate (Convert Dollars to Jamaican Dollars).

To learn more about currency rates here

https://brainly.com/question/13684639

#SPJ4

Sheila plans to use the same cover letter and resume for all her job applications so she can quickly apply to multiple jobs at once. What is the main problem with this approach?

A. She may get too many responses.
B. Employers prefer applicants to apply to one job at a time.
C. An error in one application will appear in all the applications.
D. Resumes and cover letters should be customized for each position.

Answers

Sheila plans to use the same cover letter and resume for all her job applications so she can quickly apply to multiple jobs at once. The main problem with this approach is resumes and cover letters should be customized for each position.

A cover letter serves as a company's initial introduction to you as a person.

While your CV will describe your prior job experience and skills, your cover letter will allow you to show recruiters your personal side. Employers get a large number of applications, many of which have similar backgrounds and experience.

A cover letter might assist them to filter down their candidate pool.

It customizes your application.

Even well-written resumes do not allow applicants to demonstrate their writing abilities.

By allowing applicants' characteristics to show through, a cover letter may help them sell themselves.

Recruiters gain an understanding of the individual beyond their professional experience and education.

It also allows them to talk about aspects of their past that may not be directly expressed on a resume.

Your cover letter, like your resume, should be customized to each position and organization.

Use industry-specific language that mentions points from the job description and company website instead of a template-style cover letter.

Hence, the problem is resumes and cover letters should be customized for each position.

Learn more about resume:

https://brainly.com/question/11797824

#SPJ9

A machine shop has 100 drill presses and other machines in constant use. The probability
that a machine will become inoperative during a given day is 0.002. During some days, no
machines are inoperative, but on other days, one, two, three, or more are broken down.
What is the probability that fewer than two machines will be inoperative during a
particular day?

Answers

The probability that fewer than two machines will be inoperative during a particular day is approximately 0.982201, or 98.22%.

How did we get the value?

To find the probability that fewer than two machines will be inoperative during a particular day, calculate the probability of having zero or one machines inoperative.

Denote the event "a machine becomes inoperative during a given day" as A. The probability of this event is given as P(A) = 0.002.

To calculate the probability of fewer than two machines being inoperative, calculate the probability of zero machines being inoperative (P(0)) and the probability of one machine being inoperative (P(1)), and then sum them up.

The probability of zero machines being inoperative is given by:

P(0) = (1 - P(A))¹⁰⁰

= (1 - 0.002)¹⁰⁰

= 0.980198

The probability of one machine being inoperative is given by:

P(1) = 100 × P(A) × (1 - P(A))^99

= 100 × 0.002 × (1 - 0.002)^99

= 0.198003

Now, calculate the probability of fewer than two machines being inoperative:

P(fewer than two) = P(0) + P(1)

= 0.980198 + 0.198003

= 0.982201

Therefore, the probability that fewer than two machines will be inoperative during a particular day is approximately 0.982201, or 98.22%.

learn more about probability: https://brainly.com/question/24756209

#SPJ1

Two key aspects of financial planning are cash planning and profit planning. Cash planning involves the preparation of the cash budget and profit planning involves preparation of pro forma statements. To make cash budget and pro forma statements for a firm, accounting knowledge is needed. Do accounting courses you took before help you better understand how to make cash budget and pro forma income statement and balance sheet? Explain.

Answers

Yes. Accounting courses I took before helps us understand how to make cash budget and pro forma income statement and balance sheet.

Here's how accounting courses can help individuals in creating cash budgets, pro forma income statements, and balance sheets:

Cash Budget: Accounting courses teach students about the importance of cash flow management and how to prepare a cash budget. Pro Forma Income Statement: Accounting courses teach students how to analyze historical financial data and use it to forecast future performance. Balance Sheet: Accounting courses provide a comprehensive understanding of balance sheets and their components. Students learn how to analyze assets, liabilities, and shareholders' equity to assess the financial position of a company.

By studying accounting, individuals gain a solid foundation in financial concepts, reporting standards, and analytical techniques. This knowledge equips them with the skills necessary to create cash budgets, pro forma income statements, and balance sheets effectively.

For such more question on cash budget:

https://brainly.com/question/28494878

#SPJ8

Suppose the demand for French bread rises. Explain what happens to producer surplus in the market for French bread. Explain what happens to producer surplus in the market for flour.

Answers

Answer:

When the demand for French bread rises, the price of French bread will likely increase as well. This means that the quantity of French bread that sellers are willing and able to sell at each price will increase. As a result, the total amount of revenue that sellers of French bread receive will increase, which means that producer surplus in the market for French bread will increase.

In the market for flour, the increase in demand for French bread may lead to an increase in the price of flour. This is because the increased demand for French bread will likely increase the demand for flour as well, since flour is a key ingredient in making French bread. As the price of flour increases, the producer surplus in the market for flour will also increase.

It's worth noting that the exact change in producer surplus in the market for flour will depend on the elasticity of supply of flour. If the supply of flour is relatively inelastic, the increase in price will result in a larger increase in producer surplus, whereas if the supply of flour is more elastic, the increase in price will result in a smaller increase in producer surplus

For an economy, operating outside the production possibilities frontier:

Answers

For operating outside the production possibilities frontier, the economy should not be possible with the present resources & technology.

The information related to the production possibilities frontier should be considered:

It represents the possible combinations of goods that are manufactured with the available resources.If the combinations are on the PPF so it is feasible & efficient.If the combination is not on the PPF i.e. outside so it can't be feasible.If the combination is inside on the PPF so it is feasible but not efficient.

Therefore we can conclude that For operating outside the production possibilities frontier, the economy should not be possible with the present resources & technology.

Learn more about PPF here: brainly.com/question/17581360

4. What was the closing price of the corporation on July 26th?

Answers

The closing price of a security, such as a stock or a commodity, is the final price at which it was traded on a particular trading day. The calculation of the closing price depends on the market in which the security is traded.

What is closing price?

If you have access to the historical data of the security, you can easily calculate the closing price by finding the last recorded price of the security on a given trading day. Many financial websites and data providers offer this information in their daily summary of a security's trading activity.

However, if you are looking to calculate the closing price in real-time, you can use a real-time data provider that offers the latest market quotes for the security you are interested in. The closing price is usually determined at the end of the trading day, which varies depending on the market and the security being traded.

In general, to calculate the closing price of a security, you need to find the last traded price of the security for the day. This information can be obtained from various sources, such as stock exchange websites, financial news websites, or real-time data providers. Once you have this information, you can use it to calculate the closing price of the security for that particular trading day. An overview was given.

Learn more about closing price on

https://brainly.com/question/30155035

#SPJ1

Using Activity Based Costing, calculate the rate for each cost driver.
13 marks b) Using activity based budgeting, prepare a budgeted yearly operating statement for
Aero3D Ltd. Show the following separately, within the statement.
i. The budgeted output for each product per year;
ii. The contribution to profits for each product and in total before charging activity based costs;
iii. The profit for each product and in total after charging activity based costs but before charging core costs (non-activity based costs);
iv. The total profit after charging core based costs.

Using Activity Based Costing, calculate the rate for each cost driver.13 marks b) Using activity based

Answers

i. Budgeted output for each product per year is XS PRO: 3,400 units and POLYX: 1,800 units

ii. Contribution to profits for each product and in total before charging activity-based costs are XS PRO: £561,000 + POLYX: £379,800 (£940,800)

iii. Profit for each product and in total after charging activity-based costs but before charging core costs are XS PRO: Profit after activity-based costs and POLYX: Profit after activity-based costs

iv. Total profit after charging core costs: Total profit after charging core costs

How did we arrive at these values?

To calculate the rate for each cost driver using Activity Based Costing (ABC), divide the total cost of each cost pool by its respective cost driver.

a) Calculation of rates for each cost driver:

1. Condensing machine:

Rate = Total cost of condensing machine / Number of production batches

Rate = £450,000 / 60

Rate = £7,500 per batch

2. Shaping machine:

Rate = Total cost of shaping machine / Shaping machine hours

Rate = £130,000 / (3,400 × 0.50 + 1,800 × 0.70)

Rate = £130,000 / 2,400

Rate = £54.17 per shaping machine hour

3. Manual handling of material:

Rate = Total cost of manual handling of material / Weight of material handled

Rate = £55,000 / (3,400 × 1.2 + 1,800 × 1.4)

Rate = £55,000 / 7,040

Rate = £7.80 per kilogram of material handled

b) Budgeted yearly operating statement for Aero3D Ltd:

i. Budgeted output for each product per year:

- XS PRO: 3,400 units

- POLYX: 1,800 units

ii. Contribution to profits for each product and in total before charging activity-based costs:

Contribution per unit = Selling price - Direct material cost - Direct labor cost

- XS PRO: £175 - £8 - £2 = £165 per unit

- POLYX: £225 - £10 - £4 = £211 per unit

Contribution before activity-based costs:

- XS PRO: £165 × 3,400 = £561,000

- POLYX: £211 × 1,800 = £379,800

Total contribution = £561,000 + £379,800 = £940,800

iii. Profit for each product and in total after charging activity-based costs but before charging core costs:

Cost breakdown per unit:

- XS PRO:

- Condensing machine cost = Rate (Condensing machine) × Number of production batches

- Shaping machine cost = Rate (Shaping machine) × Shaping machine hours

- Manual handling cost = Rate (Manual handling of material) × Weight of material handled

Total cost per unit = Direct material cost + Direct labor cost + Condensing machine cost + Shaping machine cost + Manual handling cost

- POLYX:

- Condensing machine cost = Rate (Condensing machine) × Number of production batches

- Shaping machine cost = Rate (Shaping machine) × Shaping machine hours

- Manual handling cost = Rate (Manual handling of material) × Weight of material handled

Total cost per unit = Direct material cost + Direct labor cost + Condensing machine cost + Shaping machine cost + Manual handling cost

Profit after activity-based costs but before core costs:

- XS PRO: Selling price - Total cost per unit

- POLYX: Selling price - Total cost per unit

iv. Total profit after charging core costs:

Total profit = Total contribution - Core costs

Since the core costs are given as a fixed amount and not linked to any activity or cost driver, they are not allocated using the ABC method.

learn more about activity-based costs: https://brainly.com/question/6654166

#SPJ1

According to the box "Reaching Beyond Our Borders, Tesla was able to do the impossible feat of
Multiple Choice
opening up a new auto plant in China in under 18 months.
sending the first U.S. citizen to the moon.
building an electric bicycle that can be recharged on solar power.
building over 1 million vehicles each year.

Answers

Answer: Based on the information provided in the box “Reaching Beyond Our Borders,” the correct answer would be option A: opening up a new auto plant in China in under 18 months.

Final answer:

In the indicated time, Tesla indeed managed to complete the incredible achievement of opening a new auto manufacturing plant in China in under 18 months, a testament to their commitment to advancing the use of renewable energy and marking a significant expansion in their global presence.

Explanation:

According to the box 'Reaching Beyond Our Borders', Tesla was able to accomplish the seemingly impossible feat of opening up a new auto plant in China in under 18 months. This accomplishment was striking as it signified a significant leap towards promoting sustainable energy on a global level, given Tesla's primary focus on electric vehicles. Meanwhile the options of - sending the first U.S. citizen to the moon, building an electric bicycle that can be recharged on solar power, and building over 1 million vehicles each year - do not correctly match the facts reportedly associated with Tesla's activities within the given timeframe.

Learn more about Tesla here:

https://brainly.com/question/33326451

#SPJ2

Arrange the various steps of the selling process in the correct order.
Follow up.
Deliver presentations.
Build a rapport.
Close the sale.
Identify needs.
Prospect.
Handle objections.

Answers

Answer:

Prospect.

Build a rapport.

Identify needs.

Deliver presentations.

Handle objections.

Close the sale.

Follow up.

Explanation:

The selling process is as follows:-

Prospect.Build a rapport.Identify needs.Deliver presentations.Handle objections.Close the sale.Follow up.What is selling process?

The selling process is the set of stages that a salesman takes while selling a product. The selling process is a comprehensive cycle that begins with identifying consumers and ends with sealing a contract with them.

It is particularly significant in B2B company sales, because the sales cycle is lengthier and may take longer to conclude. The selling procedure in B2C may be fleeting and brief.

The contact between a salesman and a potential buyer is referred to as the selling process. Prospecting, preparation, approach, presentation, resolving objections, closure, and follow-up are the seven common processes in the selling process.

Therefore, it can be concluded that the process of the selling is mentioned above.

Learn more about  selling here:

https://brainly.com/question/22521384

#SPJ2

If a perfectly competitive firm receives a marginal revenue of $10 for its product and the minimum average variable cost is $11, then the firm should, in the short run:
a.reduce the level of output its produces
b.increase the level of output it produces
c.neither increase nor decrease the level of output it produces
d.shut down

Answers

If a perfectly competitive firm receives a marginal revenue of $10 for its product and the minimum average variable cost is $11, then the firm should, in the short run shut down.

For a perfectly competitive firm, the marginal revenue tends to equal price and as well as the average revenue. So, this implies that the firm's marginal cost curve in its short-run supply curve for values is thus greater than the average variable cost. So, if the price drops below average variable cost, the firm shuts down.

So, a firm's total profit is maximized by the producing the level of output at which marginal revenue for the last unit produced will thus equal its marginal cost, or MR = MC.

Hence, option D is correct.

To learn more about a perfectly competitive firm here:

https://brainly.com/question/27419666

#SPJ1

You are a supplier of peanuts. your research department estimates that the price elasticity of demand for peanuts is 2.5. by what percentage will quantity demanded rise if you lower price from $4 to $2?​

Answers

Here's link to the answer:

tinyurl.com/wpazsebu

Its investment bankers have told Donner Corporation that it can issue a 25-year, 8.1% annual payment bond at par. They also stated that the company can sell an issue of annual payment preferred stock to corporate investors who are in the 40% tax bracket. The corporate investors require an after-tax return on the preferred that exceeds their after-tax return on the bonds by 1.0%, which would represent an after-tax risk premium. What coupon rate must be set on the preferred in order to issue it at par? (hint: a portion of dividends are tax-exempt for corporate investors).

Answers

The coupon rate must be set at 9.77%

The after-tax return on the bonds is:

= Annual payment rate * ( 1 - tax rate)

= 8.1% * ( 1 - 40%)

= 4.86%

The investors would like an after-tax return on preferred stock that is more than their bond return by 1% so they would like a preferred return of:

= 4.86% + 1%

= 5.86%

If the Preferred must be issued at par, its coupon rate must be equal its before-tax yield:

= After tax yield / ( 1 - tax rate)

= 5.86% / ( 1 - 40%)

= 9.77%

More on this type of question can be found at https://brainly.com/question/17126608

Answer:

9.77 is the correct answer

i think this helps u

An employer's defense to an employment discrimination claim might include a simple demonstration that the employee's evidence is not true. This defense might include all of the following except

Answers

An employer's defense to an employment discrimination claim might include a simple demonstration that the employee's evidence is not true. This defense might include all of the following except "the employee is a known liar".

What is a defense in law?

A defendant may establish a defense in a civil case or criminal prosecution under common law or legislation in order to avoid civil responsibility or criminal guilt.

What is Evidence?

The evidence for a proposition is what backs up that assertion. It is commonly seen as proof that the supported statement is correct. The function of evidence and how it is conceived differs by discipline.

How can a lie be detected during a legal proceeding?

The polygraph is the most well-known tool for detecting deceit through psychophysiological means.

All of these strategies are designed to identify deceit by evaluating indications of changes in the body that are ordinarily undetectable by human inspection.

Learn more about legal defense:
https://brainly.com/question/8873510
#SPJ1

Công ty ABC đề ra chính sách bán chịu như sau: ngay sau khi nhận hàng khách hàng phải trả ngay 30% giá bán trả góp, số tiền còn lại sẽ trả dần 12 lần đều nhau trong 12 tháng tiếp theo. Nếu lãi suất chiết khấu ngân hàng là 1,5%/tháng và công ty có giá bán trả ngay là 20 triệu đồng, hãy tính giá bán trả góp của sản phẩm?.

Answers

khó quátyjrthrthedre5rherdht\

Explanation:không bít dòi

Use “The Competing Values Framework,” to identify the type of organizational culture at IKEA, Home Depot, and Best Buy. You'll have to do a little online research...

Use The Competing Values Framework, to identify the type of organizational culture at IKEA, Home Depot,

Answers

The organizational culture of IKEA, Best Buy, and Home Depot is characterized by being flexible, supporting teamwork, employee training, and equality among all employees regardless of their position.

Organizational culture is a business term that refers to a set of beliefs, habits, values, attitudes, and traditions of the members of a company.

In summary, organizational culture is a set of beliefs and practices that characterize the personnel of a company oriented to achieve corporate objectives.

In the case of the companies IKEA, Home Depot, and Best Buy, they are companies that have very similar organizational cultures. Values ​​such as:

TeamworkProfessional trainingParticipation of all employeesInnovationEfficiencyAn inverted hierarchical pyramid

These values ​​have allowed them to grow globally and be classified as the best companies for work. Their organizational culture is a striking aspect for people because these companies have a philosophy of equality for all employees, and everything is aimed at improving employees to improve the customer experience.

Learn more in: https://brainly.com/question/15850593

Which of these is not an example of good practice when differentiating phonological awareness instruction?


a.

Increasing the intensity of instruction by teaching in smaller group sizes.


b.

Expecting all children to be able to produce rhyming words at the same time of the year.


c.

Increasing the intensity of instruction by giving individual children more opportunities to respond.


d.

Supporting children's understanding of an activity by using visual supports.

Answers

The option that is not an example of good practice when differentiating phonological awareness instruction is (b) Expecting all children to be able to produce rhyming words at the same time of the year.

What is good practice?

Recognizing that children learn at various speeds and have varied degrees of preparedness is a key component of good practice in differentiating phonological awareness training. It is unrealistic to anticipate that all kids will develop at the same rate.

Each child's unique requirements and talents are taken into account while differentiating instruction. Therefore, it is inconsistent with the ideas of differentiation to expect all kids to be able to come up with rhymes at the same time of the year.

Therefore the correct option is b.

Learn more about good practice here:https://brainly.com/question/14667914

#SPJ1

the specific purpose statement is declaritive by nature true or false?

Answers

Answer: true

Explanation:

(the central idea) is the theme of the speech stated in the form of a single, ... chronological follows the natural sequential order of the main points. ... each main point and supporting point is stated in sentence form as a declarative statement.

What is a class action suit?
OA. When a lawsuit is dismissed by a judge because the court does
not have proper jurisdiction
B. When a lawsuit involves not only one punishment, but an entire list
of consequences
C. When a group of consumers that suffer similar damages bring a
case against a business together
D. When an individual brings a lawsuit against all businesses in an
industry together

it’s c

Answers

A class action suit is a case, brought up by a group of consumers that suffer similar damages, against a business together. Hence, the correct answer will be an option(c).

Consumers, suffering a similar loss caused by a business, come forward and file a lawsuit together against the same business. This type of lawsuit is known as a class action suit. It is also known as Representative action. If the group wins the lawsuit, it will be compensated for the damages caused but if they lose the lawsuit, it will not receive any type of financial compensation.

To learn more about class action suits:

https://brainly.com/question/20814972?referrer=searchResults

On January 1, Sharp Company purchased $50,000 of Sox Company 6% bonds, at a time when the market rate was 5%. The bonds mature on December 31 in five years, and pay interest annually on December 31. Sharp plans to and has the ability to hold the bonds until maturity. Assume that Sharp uses the effective interest method to amortize any premium or discount on investments in bonds. At December 31, the bonds are quoted at 98.

Required:
a. Prepare the entry for the purchase of the debt investment on January 1, 2020.
b. Prepare the entry for the receipt of interest on December 31, 2020.
c. Record the entry to adjust the investment to fair value on December 31, 2020, if applicable

Answers

The journal entries to record the transactions for Sharp Company are as follows:

a) January 1, 2020:

Debit Bonds Receivable $50,000

Debit Bonds Premium $2,165

Credit Cash $52,165

To record the purchase of the debt investment.

b) December 31, 2020:

Debit Cash $3,000

Credit Interest Revenue $2,608

Credit Bonds Premium Amortization $392

To record the receipt of interest.

c) December 31, 2020:

Debit Fair Value Loss $1,000

Credit Bonds Receivable $1,000

To adjust the investment to fair value.

What is a bond's premium?

The bonds premium, in this case, refers to the excess cash that Sharp Company paid for the purchase of the bonds when the effective market rate is 5% with a coupon rate of 6%.

The implication is that Sharp Company paid more for the bonds than the market value.

Data and Calculations:

Purchase of Sox Bonds = $50,000

PV = $52,165

Premium on bonds = $2,165

Interest rate = 6%

Market rate = 5%

Maturity period = 5 years

Interest payment = annually on December 31

Transaction Analysis:

a) January 1, 2020: Bonds Receivable $50,000  Bonds Premium $2,165 Cash $52,165

b) December 31, 2020: Cash $3,000 Interest Revenue $2,608 Bonds Premium Amortization $392

c) December 31, 2020: Fair Value Adjustment $1,000 Bonds Receivable $1,000

Learn more about the amortization of bonds premium at https://brainly.com/question/25652725

Applying the conept of "Thinking at Margin" which of the following statements are relevant for a TV manufacturer to make a decision:

the average revenue of a television is $114.55

the average cost of 10 televisions is $100 each, while the 11th one requires the hiring of an extra truck for deliveries at $50

the total cost of a television is $1104.55

the average cost of a television is $104.55

Answers

Applying the concept of "Thinking at Margin" the statements that are relevant for a TV manufacturer to make a decision is: c.  the average cost of 10 televisions is $100 each, while the 11th one requires the hiring of an extra truck for deliveries at $50.

What is  "Thinking at Margin"?

"Thinking at Margin" is used for a decision making process as this principle as to do with examining this difference as to whether the extra or additional benefit a person will derived will be better than the additional cost  or whether the additional cost will be better that the additional benefit when both are compare together.

Applying the concept of "Thinking at Margin" the statements that are relevant for a TV manufacturer to make a decision is:  the average cost of 10 televisions is $100 each, while the 11th one requires the hiring of an extra truck for deliveries at $50.

Learn more about "Thinking at Margin" here:https://brainly.com/question/2292538

#SPJ1

Other Questions
HELP PLEASE!!!!!! Why would it matter if a ballot was party column or office-group? Does Hamlet feel guilty for killing Claudius?. Metal strip is being installed around a workbench that is 11 feet long and 3 feet wide find how much stripping is needed? What is the main purpose of import quotas?. what is the approximate value of this square root? 162 enter your answer, rounded to the nearest tenth, in the box. What additional information couldbe used to prove the trianglessimilar using AA-? 1. What are the three branches of Government? *O Executive, Judicial, AdversaryLegislative, Executive, JudicialO Democracy, Dictatorship, Central GovernmentDictatorship, Legislative, Democracy which disorder is characterized by insidious onset, often progressive course that is not usually reversible, clear consciousness until late stages, poor memory, possible visual or auditory hallucinations, and often fixed paranoid delusions? what did the constitution replace as our governing document in the united states? As a young person, william grant still was hired to write arrangements for:____ use e=mc^2 to calculate the power output of the sun. use the fact that the sun converts 4 millions of matter into energy. Please help Bangladesh has suffered massive death tolls in two separate cyclonic storm events in 1970 and 1991. Why does Bangladesh have a high potential for a repeat of such devastation?a. Because residents have had very few cyclonic events in the past that they are overdue for a big one.b. Many people live in low coastal floodplains that lies along a path frequently taken by tropical cyclones.c. Twice as many people have rebuilt previously flooded homes in this cyclone-prone area.d. Bangladesh is located along a mountainous area where atmospheric uplift drives hurricane formation. - 9 = 12 what is the value of K? Resumen del cuento la muerte tiene permiso What are three responsibilities of lobbyists?. pleasee helpppppppp this needs donee (ASAP PLZ) Which statement BEST describes diversity in teams?1.Diversity can create conflict so if at all possible teams should minimize team diversity.2.Diversity brings different perspectives and opinions so team members should always embrace diversity and respect differences.3.Diversity can add value to teams but each individual only needs to embrace his or her own culture.4.Diversity is the one aspect of a team that is not important. why we say muchas gracias and not mucho gracias?differences between mucho and muchas and when we use it?? who built the taj mahal?(passive voice) can the parties to a contract agree to change the time limit for commencing an action for breach of contract under the uniform commercial code (ucc)?