On February 1, 2018, Pat Weaver Inc. (PWI) issued 10%, $1,00…

On February 1, 2018, Pat Weaver Inc. (PWI) issued 10%, $1,000,000 bonds for $1,116,000. PWI retired all of these bonds on January 1, 2020, at 102. Unamortized bond premium on that date was $92,800. I am asking you to speculate on how much gain or loss should be recognized on this bond retirement. The gain or loss will be a comparison how much you pay at retirement compared to how much liability will be eliminated.

John’s kidneys have failed and he is on the wait-list for a…

John’s kidneys have failed and he is on the wait-list for a kidney transplant. If he gets a transplant, there is a chance that he will not survive the operation; if he survives the operation, there is a chance that the transplant is not successful, i.e. his body does not accept the new kidney. His doctor gives him the following information for his condition: 90% of patients survive the operation. Of the patients who survive, 60% of transplants are successful while 40% are not. What is the probability that John survives the operation and the transplant is successful?