Question
1. Eddie Industries issues $1,500,000 of 8% bonds at 105, the amount of cash received from the sale is: a. $1,425,000 b. $1,000,000 c. $1,575,000
1. Eddie Industries issues $1,500,000 of 8% bonds at 105, the amount of cash received from the sale is:
| a. | $1,425,000 | |
| b. | $1,000,000 | |
| c. | $1,575,000 | |
| d. | $1,080,000 |
2. The present value of $40,000 to be received in two years, at 12% compounded annually, is (rounded to nearest dollar)
| a. | $31,888 | |
| b. | $8,112 | |
| c. | $40,000 | |
| d. | $48,112 |
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Auditing And Assurance Services
Authors: Alvin Arens, Randal Elder, Mark Beasley
14th Edition
1256560812, 9781256560814
