Happy company produces and sells bath equipment. On July 1, 2016, Happy company issued $44,000,000 of 5-year, 10% bonds at a market interest rate of 8%. Interest of the bond pay quarterly on Oct 31, Dec 31, March 31 and June 30. The Fiscal year of the company is the calendar year. a) Determine the Present Value of the bond payable.
b) Journalize the entry to record the amount cash proceeds from the issuance of the bond on July 1, 2016.
c) Journalize the second quarterly interest payment on Dec 31, 2016 and the amortization/discount of the bond, using the effective interest rate.
d) What is the amount book Bond Payable at the end Dec 31, 2018?

Wo firms, a and b, each currently dump 50 tons of chemicals into the local river. the government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. it costs firm a $100 for each ton of pollution that it eliminates before it reaches the river, and it costs firm b $50 for each ton of pollution that it eliminates before it reaches the river. the government gives each firm 20 pollution permits. government officials are not sure whether to allow the firms to buy or sell the pollution permits to each other. what is the total cost of reducing pollution if firms are not allowed to buy and sell pollution permits from each other? what is the total cost of reducing pollution if the firms are allowed to buy and sell permits from each other? a. $3,000; $1,500 b. $4,500; $3,500 c. $4,500; $4,000 d. $4,500; $2,500