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Question - On January 1, 2005 Able Company purchased all of the stock of Baker Company. On January 1, 2010, Able purchased a piece of equipment for $50,000. This equipment is expected to last 8 years with $2000 salvage. On January 1, 2011 Able sold the equipment to Baker for $50,000. Baker believes the equipment has 7 remaining years and a 2000 salvage. On January 1, 2013 Baker sold the equipment to Cat company for $35,000.
Required: Prepare the journal entries for able, baker and consolidated for 2011, 2012, and 2013.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.
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