Answer:
$0
Explanation:
Data provided in the question
Borrowed amount from the bank = $90,000
Annual interest rate = 8%
Maturity date = March 31, 2019
Since it is mentioned in the question that, the interest and the principal were paid in cash on the maturity date so for the amount of cash that Abardeen had to pay for 2018 interest would be zero as the principal and the interest is paid for 2018
<u>Solution:</u>
Deffered revenue means when an organization receives the payment prior to the goods delivered to conusmer. In the given case, business receives $3000 on 1, January for ten month service (From january to October).
<u>The revenue per month needs to be calculated:</u>
Revenue per month = Revenue for ten months divided by Total number of months
By putting the figures we get,
Revenue per month = $3000 divided by 10 = $300 per month
An adjusting entry needs to be passed:
Date Particulars debit credit
31st jan Unearned Revenue $300
Service Revenue $300
( Service revenue that has been collected in advance)
Answer: The new confidence index is 0.7143
Explanation: Consumer confidence index which is known as the confidence index is an index used for estimating the economy of the U.S, it is published by the conference board which shows the decree of excitement in peoples's activities on their savings and spendings.
To calculate the new confidence index;
STEP1: Add the bond increase to the current bond;
6% + 1% = 7%
4% + 1% = 5%
STEP 2: FIND THE NEW CONFIDENCE INDEX
5% ÷ 7% = 0.7143
The old confidence index can also be calculated as
4% ÷ 6% = 0.6667
Answer:
open an new office because the expected marginal benefit ($12.5 million over 5 years) is greater than the estimated marginal cost ($7 million)
Explanation:
The computation is shown below;
Given that
Total marginal benefit = 12.5 million
And, the Total marginal cost = 7 million
Based on the above information
We can see that the new office should be opened as the marginal benefit would be more than the marginal cost
Therefore the first option is correct
And, the rest of the options would be incorrect
Answer:
Increase interest deductions for the limited partners.
Explanation:
In the given scenario the general partner refinances an existing $5,000,000 mortgage on a $10,000,000 property to the original amount of $8,000,000. The interest rate on both mortgages is the same.
Refinancing a loan means that more money is disbursed to the borrower before the termination of the loan.
When a loan is refinanced at the same interest rate the borrower pays more interest.
For example if the mortgage remains at $5,000,000 the interest paid on this principal will be lower.
When the loan is refinanced to $8,000,000 at the same Interest rate the interest paid will be higher because principal is higher.
So the general partner aims to increase the amount of interest paid.
