Blog

On January 1, 2024 Eagle Corp. issued $3,500,000, 10 year, 8% bonds.  The bonds pay interest semi-annually.  At the time of issuance the market rate of interest is 12%.  Calculate the issue price of the bond. You must use the honorlock calculator to solve the problem. (Use the appropriate factor tables and round to the nearest dollar).   Answer:  $_______

Eagle Corp. purchased a new piece of equipment on January 1, 2024.  The equipment had a list price of $90,000, however the seller agreed to allow Eagle Corp. to pay for the equipment in 6 yearly installments of $20,000 on December 31 of each year.  Assuming the note incurs interest at 12% annually, what amount should Eagle Corp. debit the equipment account for on the date of purchase? You must use the honorlock calculator to solve the problem. (round to the nearest dollar).   Answer:  $_______

On January 1, 2024 Eagle Corp. issued $4,000,000, 10 year, 12% bonds.  The bonds pay interest semi-annually.  At the time of issuance the market rate of interest is 8%.  Calculate the issue price of the bond.  You must use the honorlock calculator to solve the problem. Use the appropriate factor tables and round to the nearest dollar).   Answer:  $_______

Eagle Corp. issues a $1,267,948, 10%, 4 year notes payable on January 1, 2024.  The note will be repaid in four annual installments of $400,000, each payable at the end of the year (i.e. $400,000 at the end of 2024, $400,000 at the end of 2025, $400,000 at the end of 2026, and $400,000 at the end of 2027).  What is the amount of interest expense that should be recorded by Eagle Corp. in the second year (i.e. on the income statement for the year ended December 31, 2025)? You must use the honorlock calculator to solve the problem. (round to the nearest dollar).   Answer:  $_______

Which of the following is a benefit of creative destruction? 

Case Study Scenario John Smith, a 68-year-old patient with a history of COPD, arrives in the emergency department with increasing shortness of breath, wheezing, and a productive cough with yellow sputum. His vital signs show BP 145/90, HR 105, RR 30, temperature 99.1°F (37.3°C), and SpO₂ 88% on room air. ABG results reveal PaO₂ 60 mm Hg, PaCO₂ 50 mm Hg, pH 7.35 with a WBC count of 12,000/mm³.

Must show work on scrap paper.  Label the question number. Answer the question. Remember

Must show work on scrap paper.  Label the question number. Solve the equation.          

A 7-year-old child frequently argues with adults, refuses to follow rules, deliberately annoys others, and blames others for their mistakes. These behaviors have persisted for over six months and cause significant problems at home and school. Which of the following is the most likely diagnosis? 

Eagle Corp. needs to raise $1,000,000 to expand the company.  Eagle Corp. is considering the issuance of either:   $1,000,000 of 7% bonds payable at par to borrow the money; or 100,000 shares of common stock issued at $10 per share.   Before any new financing, Eagle Corp. expects to earn net income of $400,000, and the company already has 100,000 shares of common stock outstanding.  Eagle Corp. believes the expansion will increase income before interest and income tax by $100,000.  The income tax rate is 30%.  Which choice of raising capital should Eagle Corp. use if they are concerned with earnings per share? You must use the honorlock calculator to solve the problem. (round to the nearest penny).