May 5-yedr- ol as just inherited a large sum of money. Havi knowledge on investment, she's well aware o concept of duration and decides to apply it to pond portfolio. In particular, Jasmine intends P1 million of her inheritance to purchase Trea=
Q: Premised on past experience, Mayo Corp. adopted the following budgeted formula for estimating shippi...
A: Flexible budget is that type of budget which changes with change in activity level. This type of bud...
Q: Bulldogs Inc.'s capital structure consists of 40% long-term liabilities, 30% preferred stock, and 30...
A: Information Capital Ratio Cost of capital Long-term liabilities 40% 10% Preferred stock 30% 1...
Q: 34. A lessee with a finance lease containing a bargain purchase option should depreciate the leased...
A: Lease: It implies to a contract whereby one party transfers it's right of using an asset to another ...
Q: (iii) The Accounts Receivable presented in the Angel Company's Statement of Financial Position at 12...
A: Uncollectible accounts receivables are those accounts receivables to whom business has made credit s...
Q: break-even point
A: Crumbley Inc produce and sale two products. Break even point of the business is as below.
Q: Suppose that the HST tax rate is increased to 20% value added tax. 1. Complete the following table: ...
A: Harmonized sales tax is a Consumption tax in Canada. It is levid on federal goods and service. Follo...
Q: Jackie Inc. made the following capital transactions on a domestic share not listed in the exchange J...
A: The answer is stated below:
Q: On January 1, 2022, an SME acquired a building for P10,450,000 including P500,000 nonrefundable purc...
A: Given information, Present Value of Acquisition Cost =P10,450,000 Legal fees =P220,000 Discount rate...
Q: Employer purchased a residential property on installment basis and had the same used by its manageri...
A: If the employer purchases a residential property on installment basis and allows his employee to use...
Q: 2. A branded cellphone is on sale having a discount of Php 512.75. It is 7% of the selling price. Ho...
A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...
Q: Juliana filed her first quarterly return without any signification on any optional schemes. Which of...
A: Tax: It implies to a financial levy that is imposed by the government on the taxpayer so as to finan...
Q: What procedures must the auditor perform when gathering evidence related to contingencies? (Several ...
A: Contingencies liabilities depend on happening or not happening of the event. These are generally not...
Q: Carter Company uses a weighted average process costing system. Material is added at the start of pro...
A: Total units = Beginning units + Units started = 4,500 + 13,000 = 17,500
Q: a. Preference shares $250 000; Ordinary shares $1 073 100; Reserves $140 000; Retained earnings $297...
A: Shareholder's Equity Shareholder's Equity which consist of total of preference share capital, equity...
Q: Susan and Stan Collins live in Iowa, are married and have two children ages 6 and 10. In 2020, Susan...
A: A tax credit is a monetary amount that taxpayers can deduct straight from their tax returns. Unlike ...
Q: When Sheffield counted its inventory on June 30, it determined that there were 120 books with a tota...
A: Journal entry is a primary entry that records the financial transactions initially. The company woul...
Q: Is it right that she needs not to worry on her exposure on said tax?
A: Fringe benefits are the benefits which the employee of a company receives from its employers during ...
Q: SD acquired the net assets of both GM and SR. Paying cash in the amount of P185,000 and by issuing 1...
A: Solution Calculation of purchase consideration paid by SD- Particulars To GM To SR Total Cash p...
Q: [The following information applies to the questions displayed below.] Lina purchased a new car for u...
A: Depreciation Deduction: It is necessary to understand the idea of depreciation in order to write off...
Q: Some insurance policies have deductibles. A deductible is an amount of a claim not covered by nsuran...
A: In insurance deductibles are those amounts that the policy holder will have to pay before the insura...
Q: Comparison between ABC and Traditional costing
A: Traditional costing is also written as volume based costing. Under this method, overheads are alloca...
Q: Condotti Company's Job 205 for the manufacture of 6,600 units coats completed during August 20x8 at ...
A: Manufacturing cost means the cost incurred to produce the finished goods in factory. Fixed manufactu...
Q: GOTENGCO Company pays cash for three months of rent in advance, at a rate of P120,000 per month. The...
A: Prepaid rent : Prepaid rent means rent paid in advance for which expense have not been incurred yet....
Q: your given the following information about a home loan: loan amount 300000 number of years 25 years ...
A: The internal rate of return in banking industry is the rate of return at which the present values of...
Q: Give its worksheet from the given trial balance ACCOUNTS TITLE DEBIT CREDIT Cash in Bank 76,200...
A: Worksheet is a 10 column sheet under which first all unadjusted general ledger balances are shown, t...
Q: Prepare the necessary journal entries to record the following transactions relating to the long-term...
A: Formulas that are used: Note:- 1. Premium on bonds issued will be amortized over 117 Months because...
Q: In computing the present value of the lease payments, the lessee should use the implicit rate of th...
A: Present Value of Lease Payment: As a result, the present value of the minimum lease payment may be c...
Q: Don Johnson is the management accountant for Cari-Blocks (CB), which manufactures specialty blocks. ...
A: Fixed overhead spending variance The calculation of fixed overhead spending variance is the actual f...
Q: Alesha Energy purchased land in fee for $230,000, The fair market values of the surface and mineral ...
A: As per IAS 16, Property, Plant, and Equipment are initially recognized at cost.
Q: manufacturing company applies factory overhead based on direct labor hours. At the beginning of the ...
A: Solution: Applied overhead is the overhead which is applied to production based on predetermined ove...
Q: umping with joy, you were the first one which Jackie shared her good news. She was just promoted as ...
A: Fringe benefit tax is a form of tax that is levied by the employer on the non-cash benefits of the e...
Q: When using the indirect method to prepare the operating section of a statement of cash flows, which ...
A: Solution: Under indirect method of statement of cash flows, operating activities section is starts f...
Q: Bruell Electronics Co. is developing a new product, surge protectors for high-voltage electrical flo...
A: Number of units to be sold to earn target profit = (Additional fixed cost + Target profit)/ contribu...
Q: All cash available, except the amount withheld for future expenses, is distributed at the end of eac...
A: Realisation A/c Date Particulars Date Particulars Amount Jan To Assets 46000 Jan...
Q: Q3) Suppose that on November 15th, 2021 a company purchased ( i.e. Ilong) one May 2022 live cattle f...
A: A futures contract is a derivative instrument to purchase or sell an underlying asset on a future da...
Q: e balance is P
A: Introduction Net Income: Total revenue less all other expenditures and costs (including any other ...
Q: How much is the income tax due assuming the use of the 8% optional tax?
A: Optional tax rate is the optional which the tax payer can choose to be taxed on that rate when the c...
Q: 4 Use the following to calculate pretax income (IBT): $ 5,000 Sales revenue Interest revenue 300,000...
A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...
Q: Sunland Leasing Company agrees to lease equipment to Coronado Corporation on January 1, 2020. The fo...
A: Lease payments are the obligated payments for the lessee to be paid to the lessor for using the asse...
Q: e is P12M. If th
A: The company has a gross income for this coal of P220 per ton for the first 2 years and P300 per ton ...
Q: n January 1, 20x1, an entity issues 9%, 3-year, P3,000,000 bonds at a price that reflects a yield ra...
A: The question is based on the concept of Financial Management. When the YTM is greater than the coupo...
Q: On January 1, 2022, Lucas Company acquired 85% of outstanding shares of Luna Corp. The consideration...
A: Solution Working note - 1- NCI beginning 750000 NCI income 534750 NCI share dividend -28...
Q: 27. Which of the following is an advantage of captive leasing companies over the other players in t...
A: Captive lease company: It implies to a leasing business that is operated and controlled by the subsi...
Q: e fo
A: Tax refers to the mandatory charge levied by the government over the income gained by an entity.
Q: Q. 42. Calculate Proprietary ratio from the following: 12,80,000 7,20,000 5,60,000 3,30,000 2,20,000...
A: The ratio analysis helps to analyze the financial statements of the business. Proprietary ratio = Sh...
Q: The comparative partial balance sheets of Barry Company, for Years 1 below in condensed form. Year 2...
A: Barry Company Cash Flow Statement (Indirect Method) For the year ended December 31, Year 2 Cas...
Q: Which statement of financial position accounts are most affected by financing activities? a. Non-c...
A: Changes in non current assets are reflected in cash flow from investing activities Changes in non cu...
Q: Data table More info Before including the current year's gain and loss, Sandy and Dan had $38,000 an...
A: Partnership refers to the form of business in which two or more partners are ready to manage and ope...
Q: Jackie is currently in need of cash and plans to sell some of his capital assets. Which of the foll...
A: Capital gain tax is a tax on sale of captial assets of the business. Capital ...
Q: 1 Rahat is a trader. The following transactions took place in March 2021. March 3 Cash sales, $580, ...
A: Three columnar Cash book is the ledger inclusive of three column discount, cash and bank. It has the...
Step by step
Solved in 3 steps with 2 images
- May is a 45-year-old academic dean who has just inherited a large sum of money. Having knowledge on investment, she’s well aware of theconcept of duration and decides to apply it to her bond portfolio. In particular, Jasmine intends to use P1 million of her inheritance to purchase Treasury bonds, she is considering four bonds:a. An 8.5%, 13-year bond that’s priced at P1,045 to yield 7.47%b. A 7.875%, 15-year bond that’s priced at P1,020 to yield 7.60%c. A 20-year stripped Treasury that’s priced at P202 to yield 8.22%d. A 24-year, 7.5% bond that’s priced at P955 to yield 7.90% Find the duration and the modified duration of each bond. Find the duration of the whole bond portfolio if Jasmine puts P250,000 into each of the four Treasury bonds. Find the duration of the portfolio if Jasmine puts P360,000 each into bonds a and c and P140,000 each into bonds b and d. Which portfolio—2 or 3—should Jasmine select if she thinks rates are about to head up and she wants to avoid as much price…In 2016 Beth purchased a 10-year, 3.20% p.a. semi-annual paying coupon bond with a Face Value (FV) of $2 000 000, as she was attracted by the fixed income stream in order to fund her retirement expenses. d) Elon, a Wall street portfolio manager, informed Beth that she should consider investing in his portfolio instead. He said his portfolio is perfect for someone who is looking to retire within the next 6 MONTHS. His portfolio has the following allocation of assets: Asset Class Allocation Shares in Small Companies (High Risk) 0% Shares in Blue Chip Companies (Low Risk) 20% Bonds 50% Cash 30% Does Elon have a point? Why or why not?Meroy Karthik is a bank executive who has just inherited a large sum of money. Having spent several years in the bank’s investments department, he is well aware of the concept of duration - convexity and decides to apply it to his bond portfolio. In particular, Meroy intends to use RM1 millions of his inheritance to purchase two Malaysian Treasury Bonds: Prepare the duration and the modified duration table of each bond. Find the duration of the portfolio if Meroy allocates 70 percent into Bonds GO190001 and 30 percent into Bond MO190002.
- Isabel prefers to purchase bonds that contain a sinking fund provision to protect her from any potential loss of her invested capital. She purchased a 20-year, $20,000 sinking fund bond with a 12% coupon, paid seml-annually, for $18,900. If the company calls the bond after 10 years, and the call penaity requires a payment of $30 per $1,000 of face value, what are the yeilds to maturity and yeild to call on this bond? -previous answered questions were wrong, show calculations.In 2016 Beth purchased a 10-year, 3.20% p.a. semi-annual paying coupon bond with a Face Value (FV) of $2 000 000, as she was attracted by the fixed income stream in order to fund her retirement expenses. c) Beth decided to sell the bond from part a) and is considering her investment options. A friend suggested that she invests the proceeds by buying a short-term debt instrument. Explain two advantages of short-term debt instruments.A woman wishes to invest $14,000 in three types of bonds: municipal bonds paying 8% interest per year, bank investment certificates paying 9%, and high-risk bonds paying 13%. For tax reasons she wants the amount invested in municipal bonds to be at least three times the amount invested in bank certificates. To keep her level of risk manageable, she will invest no more than $4000 in high-risk bonds. How much should she invest in each type of bond to maximize her annual interest yield? [Hint: Let x = amount in municipal bonds and y = amount in bank certificates. Then the amount in high-risk bonds will be $14,000 − x − y.] municipal bonds $______ bank certificates $______ high-risk bonds $______
- Anne has €60,000 in cash that she plans to invest in Apple stock, which is currently selling at €50 per share. She plans to buy the stock on margin by borrowing 40% of the total investment from her broker, How many shares of Corning will she purchase?Samantha told you that she invested $1,000 in a portfolio of large-company stocks five years ago and reinvested the dividends. Her investment grew to $3,456 as of today. Had she invested that same amount in a Government of Antigua bond she would have received $2,500 even if she reinvested the 10% coupons paid on the bonds. Given this information, why anyone would want to invest in bonds rather than stocks?George recently received a great stock tip from his friend, Mason. George didn’t have any cash on hand to invest, so he decided to take out a $30,000 loan to facilitate the stock acquisition. The loan terms are 8 percent interest with interest-only payments due each year for five years. At the end of the five-year period the entire loan principal is due. When George closed on the loan on April 1, 2021, he decided to invest $21,000 in stock and to use the remaining $9,000 to purchase a four-wheel recreation vehicle. George is unsure how he will treat the interest paid on the $30,000 loan. In 2021, George paid $1,800 interest expense on the loan. (Hint: Visit https://www.irs.gov/ and consider IRS Publication 550.) What amount may he deduct as interest in 2021?
- Your friend told you that she invested $1,000 in a portfolio of large-company stocks 5 years ago and also reinvested the dividends. Herinvestment grew to $3,456 as at today. Had she invested that same amount in a Government of Grenada bond she would have received $2,500even if she reinvested the 10 percent coupons paid on the bonds. Given this information, critically discuss why anyone would want to invest inbonds rather than stocks?An investment broker that Ava trusts recommended that she purchase a $50,000, 15-year municipal bond that generates a dividend of 4% per year payable quarterly. She will pay a discounted amount of $45,000 now for the bond. In general, Ava hopes to make 8% per year compounded quarterly on her investments. Using the PW value, determine if this is a financially advantageous investment for her. Solve with factors. The present worth is $ . This a financially sound investment. Need accurate answer and give answer fastGeorge recently received a great stock tip from his friend, Mason. George didn't have any cash on hand to invest, so he decided to take out a $44,000 loan to facilitate the stock acquisition. The loan terms are 8 percent interest with interest-only payments due each year for five years. At the end of the five-year period, the entire loan principal is due. When George closed on the loan on April 1, 2023, he decided to invest $39,600 in stock and to use the remaining $4,400 to purchase a four-wheel recreation vehicle. George is unsure how he will treat the interest paid on the $44,000 loan. In 2023, George paid $2,640 interest expense on the loan. What amount may he deduct as interest in 2023?
