On January 1, 2019, Shay Company issues $410,000 of 12%, 20-year bonds. The bonds sell for $399,750. Six years later, on January 1, 2025, Shay retires these bonds by buying them on the open market for $430,500. All interest is accounted for and paid through December 31, 2024, the day before the purchase. The straight-line method is used to amortize any bond discount. 1. What is the amount of the discount on the bonds at issuance?
2. How much amortization of the discount is recorded on the bonds for the entire period from January 1, 2019, through December 31, 2024?
3. What is the carrying (book) value of the bonds as of the close of business on December 31, 2024?
4. Prepare the journal entry to record the bond retirement.

Druganaut company buys a $21,000 van on credit. the transaction will affect the

Consider a two-firm industry. firm 1 (the incumbent) chooses a level of output q1. firm 2 (the potential entrant) observes q1 and then chooses its level of output q2. the demand for the product is p = 100 - q, where q is the total output sold by the two firms which equals q1 +q2. assume that the marginal cost of each firm is zero. a) find the subgame perfect equilibrium levels of q1 and q2 keeping in mind that firm 1 chooses q1 first and firm 2 observes q1 and chooses its q2. find the profits of the two firms-? 1 and ? 2- in the subgame perfect equilibrium. how do these numbers differ from the cournot equilibrium? b) for what level of q1 would firm 2 be deterred from entering? would a rational firm 1 have an incentive to choose this level of q1? which entry condition does this market have: blockaded, deterred, or accommodated? now suppose that firm 2 has to incur a fixed cost of entry, f > 0. c) for what values of f will entry be blockaded? d) find out the entry deterring level of q1, denoted by q1b, as a function of f. next, derive the expression for firm 1

Which term refers to the cost that motivates an economic decision