On January 1, Year 1, Melas Corporation purchased a machine from Wade, Inc. by issuing a 4%, $360,000, three-year note that requires interest to be paid semiannually. The machine could have been purchased at a cash price of $340,497. Interest of $7,200 was payable semiannually on June 30 and December 31. The annual market rate of interest was determined to be 6%. What is the amount of interest that Melas will report for the six months ended June 30, Year 1

$1,045.05

Explanation:

If a Note is issues below the face value, it is issued on discount. This discount is recorded and amortized on Note's period to maturity. This amortized Discount will be added to the the coupon payment to calculate the interest expense for the year.

Discount on Note = $360,000 - $340,497 = $19,503

Amortized Discount = $19,503 / 3 = $6,501

Interest Expense = Coupon Payment + Amortized Discount = ($360,000 x 4%) + $6,501 = $20,901 per year = $1,045.05 per six month

the correct answer would be b, when, queen, calder hall and london.

explanation:

we always capitalize words when a paragraph or sentence is starting, when an important name is used, when a place is being written, or simply when a noun is used, etc. so in this sentence, sentence is starting from 'when', so it will be written in capital letters. secondly, queen is considered to be an important person, so it will also be written in capital letter. next, the name of the town is mentioned, i-e calder hall, which will also be written in capital letters. in the last,   city name is being used, 'london', which will also be written in capital letters. so option b is the most appropriate one.

d. the economy will face inflation.