1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
brilliants [131]
3 years ago
10

On December 1, 20X1, Money Co. gave Home Co. a $200,000, 11% loan. Money paid proceeds of $194,000 after the deduction of a $6,0

00 nonrefundable loan origination fee. Principal and interest are due in 60 monthly installments of $4,310, beginning January 1, 20X2. The repayments yield an effective interest rate of 11% at a present value of $200,000 and 12.4% at a present value of $194,000. What amount of income from this loan should Money report in its 20X1 income statement?A. $0B. $1,833C. $2,005D. $7,833
Business
1 answer:
zysi [14]3 years ago
3 0

Answer: <em>(C.) $2,005</em>

Explanation:

Given :

Money Co. made a cash outflow of $194,000 for the $200,000 loan Money gave to Home Co.  

The book value of the loan is $194,000.

The stated rate is 11%.

Hence they will receive an effective interest rate of 12.4% on cash outflow.  

∴

Income from the loan = Book value × Effective interest rate × No. of months of the year

= $194,000 × 0.124 × \frac{1}{2}

= $2,004.67

You might be interested in
The principal-agent problem, as applied to the labor market, would have the :
Law Incorporation [45]

Answer:

The answer is B.

Explanation:

An agency relationship is a relationship between the principal and the agent.

A principal employs the service of an agent who acts on behalf of the principal.

An agent must make sure that there is no conflict on interest.

So in labor market, employer is the principal while the worker or employee is the agent.

6 0
3 years ago
The Cutting Department has 6,000 units in process at the end of September that are 100% complete for direct materials. The units
MArishka [77]

Answer:

equivalent units of production = 6,000 units

Explanation:

given data

process at end of September = 6,000 units

direct materials = 100%

direct labor and manufacturing overhead = 70%

solution

we get here equivalent units of production for the conversion cost that is

equivalent units of production = process at end × direct materials complete .........................1

put here value and we get

equivalent units of production = 6,000 units ×  100%

equivalent units of production = 6,000 units

7 0
4 years ago
Gina is about to use a fire
yan [13]

The factor that will determine the fire extinguisher is B. The type of fire.

<h3>What is a fire extinguisher?</h3>

It should be noted that fire extinguisher is important in order to control fire when there's an outbreak.

In order for Gina to use a fire

extinguisher on a small fire, the factor that determines the type of extinguisher she should use is the type of fire.

Learn more about fire extinguisher on:

brainly.com/question/711731

3 0
2 years ago
Fill in the missing numbers in the following income statement:
kakasveta [241]

Answer:

See below

Explanation:

EBIT = Sales - Cost - Depreciation

= $645,000 - $346,500 - $97,200

= $201,300

Taxes = EBIT × 35%

= $201,300 × 35%

= $70,455

Net income = EBIT - Taxes

= $201,300 - $70,455

= $130,845

1. OCF

= Net income + Depreciation

= $130,845 + $97,200

= $228,045

2. Depreciation tax shield

= Depreciation × Tax rate

=$97,200 × 35%

= $34,020

3 0
3 years ago
In the long run, pure competition forces all firms to achieve productive efficiency. In other words, firms must use the ______ p
Anna007 [38]

Answer:

least-cost is the correct answer.

Explanation:

4 0
3 years ago
Other questions:
  • What steps should you take to make sure the delivery of your presentation is successful?
    8·2 answers
  • Taco Hut purchased equipment on May 1, 2018, for $15,000. Residual value at the end of an estimated 8-year service life is expec
    12·1 answer
  • In 2 to 4 sentences, describe how money is channeled from savers to borrowers to investors.
    10·2 answers
  • Because there are some positive aspects of bureaucracy, as proposed by Max Weber, Tammy, a restaurant manager, is interested in
    14·1 answer
  • Austin, Aiden, and Zara wanted to open A2Z Sports Bar that serves a unique offering of beer, weekend entertainment, and a limite
    9·1 answer
  • The __________ effect occurs when people improve some aspect of their behavior or performance simply because they are being asse
    10·1 answer
  • On November 1, 2018, Cullumber Farm entered into a contract to buy a $162000 harvester from John Deere. The contract required Cu
    10·1 answer
  • Profit margin is synonymous with the term _______ and tells whether or not total profit will be positive.
    14·1 answer
  • Suppose a firm produce 20 units per month and has a total variable cost of R3000 per month.If it's average fixed costs are R400
    8·1 answer
  • Michek Company loans Sarasota Company $2,000,000 at 6% for 3 years on January 1, 2020. Michek intends to hold this loan to matur
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!