Recent content by Dr.Ly

Suppose the Federal government had a budget deficit of $80 billion in year 1 and $90 billion in year 2, but had budget surpluses of $40 billion in year 3 and $20 billion in year 4. Also assume that it used its budget surpluses to pay down the public debt. At the end of these 4 years, the Federal...

Interest costs are included in the cost of an asset in conjunction with 1. long-term assets being purchased. 2. long-term assets acquired for speculative purposes. 3. long-term assets being constructed. 4. natural resources and intangible assets. Which of the following would be...

On December 31, 2007, the balance sheet of Gamma Corporation reported bonds outstanding with a face value of $2,000,000 and a related unamortized premium of $60,000. Interst is payable semiannually on January 1 and July 1. a. Prepare an entry in journal form without explanations to record the...

Suffolk Corporation issued $100,000 of 20 year, 6 percent bonds at 98 on one of its semiannual interest dates. The straight line method of amortization is to be used. What is the total interest cost of the bonds? 1. $117,500 2. $120,000 3. $118,000 4. $122,000 Knollwood Corporation...

Flint Corporation issues $1,000,000 of 30 year, 8 percent bonds at 106. Interest is paid semiannually and the straight line method is used for amortization. Assume that the bonds are issued on an interest date. a. What amount was received for the bonds? b. How much interrest is paid each...

Which of the following is a likely result of the dramatic decrease in the price of microprocessor chips to computer manufacturers in the last two decades? A. A decrease in the supply of diskettes B. An increase in the demand for computers C. An increase in the supply of computers D. An increase...