Required information [The following information applies to the questions displayed below.) On January 1, 2024, Splash City issues $390,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 8% and the bonds issued at $363,499. Required: 1. Using an amortization schedule, show that the bonds have a carrying value of $367,278 on December 31, 2025. (Round your final answers to nearest whole dollar.) Date 01/01/2024 06/30/2024 12/31/2024 06/30/2025 12/31/2025 Cash Paid Interest Expense $ 17,200 $ 16,434 Change in Carrying Value Carrying Value 390,000 468,778

Q: OCF analysis

A: Operating Cashflow Analysis  = Net Income + Depreciation and Amortization- Net Working capital

Q: Differentiate between ROE and ROIC.

A: Return on equity (ROE) is the returns produced by a company on its equity capital. It is expressed…

Q: Explain CMO Mechanics?

A: Collateralized mortgage obligation: It is a financial instrument that raises funds by…

Q: Explain the characteristics

A:

Q: Describe about the LIFO and FIFO method.

A:

Q: Explain IO and PO Strips?

A: Interest only (IO) strips are a financial product shaped by unraveling the principal and interest…

Q: What is Gordon model?

A: Intrinsic value of a stock is based on the internal information of an organization. That is, market…

Q: Write two examples of SWOT analysis

A: 2. SWOT analysis for Sedibeng Breweries Strength: Capital stock: A strong capital base has been…

Q: Examples of  CIRO and PIRO

A: Example of CIRO: A note book valued at $5 CAD is being transported through courier would be exempt…

Q: What islockbox system?

A: Banks provide various services to the organizations such as lock box facility, overdraft facility,…

Q: Describe the functions and powers of ASIC

A: Australian securities and investment commission is a commission made in 1998 of Australian…

Q: Describe WACC and its components.

A: WACC: The weighted average cost of capital (WACC) is a computation of   cost of capitalof a company…

Q: Wat is investment

A: According to the standards, investment can be classified into three categories, i.e. held to…

Q: Explain NAREIT Index?

A: NAREIT Index Rate: It implies the compound dividend yield which is communicated as far as a yearly…

Q: ehat -5 bUsinees

A: Following is the answer to the given question

Q: Define Factoring.

A: Accounts Receivable: It refers to the amount of money due to the company from the debtors.

Q: Describe the PW method?

A: There are different types of methods for comparing the worthiness of the projects. Some of the tem…

Q: What is Miller model?

A: It represents the impact of individual taxes or personal taxes into the valuation of a levered firm,…

Q: Why was EDI devised?

A: EDI: EDI or Electronic data interchange refers to as a system designed to share encrypted…

Q: Show me the function

A: Nominal Return: It is the rate of return earned on an investment prior to any deductions regarding…

Q: Consider REMICs?

A: A real estate mortgage investment conduit (REMIC) is a difficult puddle of mortgage securities…

Q: Identify the gragh?

A: Part a: Total direct material cost increases or decreases in direct proportion to change in activity…

Q: What are the advantages and disadvantages of  LIFO?

A: Last-in-First-Out: In Last-in-First Out method, the costs of last purchased items are considered as…

Q: Who is Allen Stanford

A: Allen Stanford Robert Allen Stanford born on march 24,1950 who were known as primarily by his…

Q: Define white knight

A: A white knight is hostile acquisition security by which a 'friendliness' person or business who…

Q: how to calculate appiled averhead

A: Applied overhead: It includes indirect costs that cannot be directly applied to the product such as…

Q: 1. Descibe JIT production and its features.

A: Just in time production represents the reduction in labor, material, and time so that the cost could…

Q: What is the Baumol model, and how is it used?

A: The Baumol model, also known as the Baumol-Allais-Tobin (BAT) model, is a cash management model. In…

Q: Define SML equation

A: Introduction: Security market line is the diagrammatic depiction of capital asset pricing model to…

Q: I need exact interest

A: Solution:Exact interest method is based on 365 days in a year.As per exact interest method,Interest…

Q: What is a cfar?

A: Cash Flow at Risk (CFAR):Cash Flow at Risk is a term which focuses on the risk of receivables and…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.