On January 1, 2017, Clayton Company issues $640,000, 15 year, 8% bonds (paying semiannual interest on 6/30 and 12/31) for $765,443, when the annual market rate of interest is 6%. If the company uses the effective interest method of amortization, what will be the amount of interest expense recorded on the December 31, 2017 Income Statement? (HINT: Will include the total interest expense recorded with both the June 30 payment and the December 31 payment).

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

Zane's vanes is a service that restores old weather vanes. zane has just spent $125 purchasing a 1920s-era weather vane which he expects to restore and sell for $500 once the work is completed. after having spent $125, zane realizes that he will need to spend an additional $200 on materials to complete the restoration. alternatively, he can sell the weather vane without restoring it for $200. what is his marginal benefit if he sells the weather vane without restoring it?

Suppose a new "payment technology" allows individuals to make payments using u.s. treasury bonds (i.e., u.s. treasury bonds are immediately cashed when needed to make a payment and that balance is transferred to the payee). how do you think this payment technology would affect the transactions component of the demand for money? a. this would lead to a decreased need to hold cash for transactions; however, the transactions demand for money would remain unchanged. b. this would lead to a decreased need to hold cash for transactions, thus the transactions demand for money would decrease. c. this would lead to an increased need to hold cash for transactions, thus the transactions demand for money would increase. d. this technology would not change the transactions component of the demand for money.