Q)Suppose that in 2018 the price index was 120 and Ifikile purchased R35 000 worth of bonds. One year later (i.e., in 2019) the price index was 126. Ifikile redeemed her bonds for R39 725. It was noted that Ifikile was in the 40% tax bracket. What was Ifikile’s real after-tax rate of interest to the nearest tenth of a percent
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- Which of the following is the most advantageous for a debtor if he borrowed P15, 000 at 6% from March 15, 2020 to December 20, 2020.? A Ordinary Interest at Actual Time (B) Exact Interest at Actual Time Ordinary Interest at Approximate Time D Exact Interest at Approximate TimeSuppose serials bonds with face value of P1,000,000 scheduled to be retired on December 31, 2024 are retired at 104 on December 31, 2022, two years prior to their redemption date, what amount should Elizabeta report in its 2022 income statement as gain (loss) on early extinguishment of debt?Which of the following is the most advantageous for a debtor if he borrowed P15, 000 at 6% from March 15, 2020 to December 20, 2020.? А Exact Interest at Approximate Time В Exact Interest at Actual Time Ordinary Interest at Approximate Time Ordinary Interest at Actual Time
- Prepare journal entries to capture the following events. Please ignore the interests and bond amortization. Use a tax rate of 20% if you need one. 1.12/15/2021: Purchased $200,000 of Harbox bonds, which is viewed as an AFS investment. 2.12/31/2021: Estimated the fair value of the Harbox investment at $187,000. 3.1/15/2022: Sold the Harbox investment for $162,000 and made all necessary entries to remove the Harbox investment from the accounts: a.Sale of investments: b.Reclassification (For expediency, you don’t need to record the temporary unrealized gains/losses between 12/31/2021 and 1/15/2022, since they will be reversed anyways):Determine the after-tax yield (i.e., IRR on the ATCF) obtained by an individual who purchases a $12,000, 10-year, 10% nominal interest rate bond. Given that interest is paid semi-annually, and the bond was bought after the fifth payment had just been received by the previous owner. The purchase price for the bond was $8,000. All revenues (including capital gains) are taxed at an income rate of 28%. The bond is held to maturity. Give answer to 2 d.p and please don't use excel.1. soru At the end of 2019, The Business with 20% Corporate tax rate has Expenses: TL3.150.000 and Revenues: TL3.375.000. How much is the Tax Payable if the business prepaid income tax of TL15.000 during the accounting period? a.TL30.000 b.TL15.000 c.TL45.000 d.TL60.000
- 1. On October 31, 2019, Strongman Samson borrowed P100,000.00 from Pretty Delilah subject to an interest rate of 6% per year until full payment. If Samson is able to pay both the principal and the interest on March 10, 2020, how much should Samson prepare in order to satisfy his agreement with Delilah?At year-end 2019, Wallace Landscaping's total assets were $2.09 million, and its accounts payable were $430,000. Sales, which in 2019 were $2.2 million, are expected to increase by 15% in 2020. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable. Common stock amounted to $650,000 in 2019, and retained earnings were $315,000. Wallace has arranged to sell $60,000 of new common stock in 2020 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2020. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its net profit margin on sales is 6%, and 60% of earnings will be paid out as dividends.9. On August 20, 2024, Madak Co. decides to invest excess cash of $2,900 by purchasing Wolf, Inc. bonds. At year-end, December 31, 2024, the market price of the bonds was $2,600. The K- investment is categorized as available-for-sale debt Joumalize the adjusting entry needed at December 31, 2024. (Record debits first, then credits. Select the explanation on the last line of the journal entry table) Date 2024 Dec 31 Accounts and Explanation Debit Co Credit
- Required information Skip to question [The following information applies to the questions displayed below.] At the beginning of his current tax year, David invests $11,550 in original issue U.S. Treasury bonds with a $10,000 face value that mature in exactly 10 years. David receives $820 in interest ($410 every six months) from the Treasury bonds during the current year, and the yield to maturity on the bonds is 6.2 percent. Note: Round your intermediate calculations to the nearest whole dollar amount. a. How much interest income will he report this year if he elects to amortize the bond premium?Jay purchased a 90-day $500,000 bank bill (at a simple interest rate) on 15 July 2021. The purchase price was $490,550. He sold this bank bill on 13 August 2021. (b) Assume that John sold this bank bill at a simple interest rate of 3.63% p.a. up to the maturity date of the above bank bill. What is the annualised (simple interest) yield for this investment from 15 July 2021 to 13 August 2021? Round your answer to 3 decimal places in terms of percentage. O a. 15.377% O b. 16.082% O c. 16.511% O d. 16.970%John purchased a 60-day $500,000 bank bill (at a simple interest rate) on 15 July 2021. The purchase price was $490,550. He sold this bank bill on 13 August 2021. (b) Assume that John sold this bank bill at a simple interest rate of 2.69% p.a. up to the maturity date of the above bank bill. What is the annualised (simple interest) yield for this investment from 15 July 2021 to 13 August 2021? Round your answer to 3 decimal places in terms of percentage. a. 20.702% b. 21.986% c. 20.475% d. 21.322%