29. Which of the following terms describes the process of recording expense for

Question

29. Which of the following terms describes the process of recording expense for natural resources A. Depletion B. Amortization C. Depreciation D. None of the above Answer 30, 31, and 32 on your exam. CIRCLE YOUR FINAL ANSWER 30. California Coasters issues a bond with a stated interest rate of 10%, face value of S50.000, and due in 5 years. Interest payments are made semi-annually. The market rate for this type of bond is 10%. What is the issue price of the bond? (worth 3 points) amuel just received his first job after graduating as a loan officer at a local bank. His gross salat 8,000 annually. Following is tax related information for Samuel and his employer: (Worth 4 p ome Tax Rate 15%

Explanation / Answer

Answer 29 is A.

Depletion is the recording expense for natural resources.

Amortization is write-off depreciation, premium, goodwill, etc.
Depreciation is wear and tear of machinery or equipment due to usage.

Answer 30.

Face Value = $50,000

Annual Coupon Rate = 10%
Semiannual Coupon Rate = 5%

Annual Interest Rate = 10%
Semiannual Interest Rate = 5%

Semiannual coupon rate and semiannual interest rate are equal. So, bonds are issued at face value.

Issue Price of the Bond is $50,000

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.