Why does the interest method of amortizing a discount or premium use the market rate in calculating
Question:
Why does the interest method of amortizing a discount or premium use the market rate in calculating interest expense to be recorded?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 40% (10 reviews)
The interest method is used s...View the full answer
Answered By
ANDREW KIPRUTO
Academic Writing Expert
I have over 7 years of research and application experience. I am trained and licensed to provide expertise in IT information, computer sciences related topics and other units like chemistry, Business, law, biology, biochemistry, and genetics. I'm a network and IT admin with +8 years of experience in all kind of environments.
I can help you in the following areas:
Networking
- Ethernet, Wireless Airmax and 802.11, fiber networks on GPON/GEPON and WDM
- Protocols and IP Services: VLANs, LACP, ACLs, VPNs, OSPF, BGP, RADIUS, PPPoE, DNS, Proxies, SNMP
- Vendors: MikroTik, Ubiquiti, Cisco, Juniper, HP, Dell, DrayTek, SMC, Zyxel, Furukawa Electric, and many more
- Monitoring Systems: PRTG, Zabbix, Whatsup Gold, TheDude, RRDtoo
Always available for new projects! Contact me for any inquiries
4.30+
1+ Reviews
10+ Question Solved
Related Book For
College Accounting A Practical Approach
ISBN: 9780134729312
14th Edition
Authors: Jeffrey Slater, Mike Deschamps
Question Posted:
Students also viewed these Business questions
-
On January 1, 2011, Denver Company sold land that originally cost $400,000 to Boise Company. As payment, Boise gave Denver a $600,000 note. The note bears an interest rate of 4% and is to be repaid...
-
On January 1, 2015, Denver Company sold land that originally cost $400,000 to Boise Company. As payment, Boise gave Denver a $600,000 note. The note bears an interest rate of 4% and is to be repaid...
-
On January 1, 2013, Denver Company sold land that originally cost $400,000 to Boise Company. As payment, Boise gave Denver a $600,000 note. The note bears an interest rate of 4% and is to be repaid...
-
A unity negative feedback loop has the loop transfer function We know from the underlying physics of the problem that the parameter a can vary only between 0 (a) The steady-state tracking error due...
-
Transcorp has made a purchase of goods from a foreign firm that will require payment of FC380,000 six months later. Transcorp wishes to make definite the amount of dollars it will need to pay the...
-
29 32 25 26 27 28 56989012 0 pts Start! 30 31 33 34 35 36 37 38 39 let myName = 40 41 42 43 44 45
-
Which of the following is designed to identify entry of a nonexistent customer account number? a. sequence check c. completeness check b. field check d. validity check
-
Karen has filed a voluntary petition for a Chapter 7 proceeding. The total value of her estate is $35,000. Ben, who is owed $18,000, has a security interest in property valued at $12,000. Lauren has...
-
How would you explain why operation management's role in business today is so important.
-
1. Using Appropriate examples and illustrations, compare and contrast the following: Fraud, Theft, Scam, and Misstatement. 2. Discuss the respective roles that each of the factors/elements in the...
-
The straight-line method of amortizing a bond discount or premium will result in an uneven amount of discount or premium that increases or decreases expense each period. Agree or disagree? Why?
-
Journalize the following transactions: 1. Issued three $35,000, 8% bonds that mature in 12 years at face value on May 1. 2. Paid semiannual interest on October 31. 3. Bonds retired at end of 12 years.
-
Suppose that David Samuel wants to invest in three company shares: APPL, FB, and IBM. He decides to do some market research before he invests his money in these shares. The following table provides...
-
Hentz Industries plans to enclose three parallel rectangula areas for sorting returned goods. The three areas are within one large rectangular area and 1200 yds of fencing is available. What is the...
-
An investor made the following trades. Bought a share of stock for $45 Bought a put option, X=45 for $4 Wrote a call option, X=50 for $5 If the stock price is $60 at the expiration of the options,...
-
Product Blue Product Red Selling 1 2 . 0 0 2 4 . 0 0 Variable cost 4 . 0 0 8 . 0 0 Contribution margin 8 . 0 0 ...
-
Key figures for Apple and Google follow. $ millions Cash and equivalents Accounts receivable, net Inventories Retained earnings Cost of sales Revenues Total assets Required: Apple $ 48,844 22,926...
-
"Sales increased by 20%, so cash inflows must also have increased by 20%." Do you agree with this statement? Why or why not?
-
Select a policy issue and evaluate its impact and select one issue of interest from the White House Issues. 1. Develop a brief overview of the selected issue. 2. Recommend one type of public policy...
-
U.S. households have become smaller over the years. The following table from the 2010 GSS contains information on the number of people currently aged 18 years or older living in a respondent's...
-
Jay Simons, the accountant of See Co., wanted to buy a new computer software package for his general ledger. He couldnt do it because all funds were frozen for the rest of the fiscal period. Jay...
-
Jay Simons, the accountant of See Co., wanted to buy a new computer software package for his general ledger. He couldnt do it because all funds were frozen for the rest of the fiscal period. Jay...
-
Complete the following from the general journal of Moore Company. a. Year of journal entry b. Month of journal entry c. Day of journal entry d. Name(s) of account(s) debited e. Name(s) of account(s)...
-
Redwood Industries has EBIT of $450 million, interest expense of $175 million, and a corporate tax rate of 35%. The total of Rosewood's net income and interest payments is closest to:
-
Jayden is evaluating purchasing a sandwich shop from his friend. Currently, the shop sells sandwiches for $10 each with a variable cost of $3 per sandwich. The fixed costs for the shop are $1,400....
-
To create a sample program personnel budget and to evaluate your budget. Scenario: You are the director of a small early childhood program, forecasting for your upcoming year. Your program will have...
Study smarter with the SolutionInn App