A $100,000 5-year 6% bond is issued on January 1, 2021. The bond pays interest annually. The market rate is 7%. What is the selling price of the bonds, rounded to nearest dollar?
A.$104,213
B.$100,000
C.$95,900
D.$ 4,100
Which is correct regarding the effect of tax rate changes on income tax expense, assets, and liabilities?
A. When a company makes no sales and has no expenses such that its pre-tax income is zero, a change in tax rate always results in zero net income.
B. When the tax rate increases, the increase in deferred tax liabilities creates tax expense.
C. Enterprises need to take account of changes in future tax rates legislation only if it has been passed into legislation and not if it is only considered "substantively enacted."
D. When the tax rate decreases, the decrease in deferred tax liabilities creates a tax expense.