g On January 1, 2020, Fotso Corporation issued 5 year bonds with a face value of $200,000 and coupon rate of 12% interest, payable semiannually on June 30 and December 31. The market rate of interest at the time of issuance was 14%, and the bonds were issued at a discount of $14,047. Using the effective-interest method, the amount of discount that should be amortized on December 31, 2020, is

amortization of bond discount December 31 = $1,087.88

Explanation:

bonds' issue price = $200,000 - $14,047 = $185,953

amortization of bond discount June 30 = ($185,953 x 7%) - ($200,000 x 6%) = $1,016.71

amortization of bond discount December 31 = ($186,969.71 x 7%) - ($200,000 x 6%) = $1,087.88

total interest expense Decmber 31 = $13,087.88

yes the correct answer was

b.the increased supply will create a surplus.    

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.