On October 1, 2020, Wenn Company purchased 800 of the $1,000 face value, 8% bonds of Loy, Inc., for $936,000, including accrued interest of $16,000. The bonds, which mature on January 1, 2027, pay interest semiannually on January 1 and July 1. Wenn used the straight-line method of amortization and appropriately recorded the bonds as available-for-sale. On Wenn's December 31, 2021 balance sheet, the carrying value of the bonds is a. $920,000.

b. $912,000.

c. $908,800.

d. $896,000.

d. $896,000.

Explanation:

The computation of the carrying value of the bond is shown below:

The amount after excluding the interest part is

= $936,000 - $16,000

= $920,000

The premium amount is

= $920,000 - 800 × $1,000

= $920,000 - $800,000

= $120,000

Now the premium amortizaton is

= $120,000 × 15 ÷ 75

= $24,000

So, the carrying value is

= $920,000 - $24,000

= $896,000

hence, the correct option is d. $896,000

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.