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
Rufina [12.5K]
3 years ago
9

On October 1, 20X1, a company purchased a piece of land by agreeing to pay the seller $450,000 in two years. If the company had

borrowed the money from a bank to pay the seller immediately, management estimates the bank would have required interest of 9%. Calculate the amount of interest expense the company would record for its year ending December 31, 20X1 (rounded to the nearest dollar).
a. $40,500.
b. $9,289.
c. $10,125.
d. $8,522.
Business
1 answer:
Vitek1552 [10]3 years ago
7 0

Answer:

The answer is c. $10,125.

Explanation:

interest rate = 9%

loan amount= 450000

time = 0.25years

Interest charge = 450000* 0.25 * 0.09 =$10,125.

The interest  charge will be $10,125 because the loan was taken in October and the financial year  ends in December, which makes it 3 months which is 0.25 years.

You might be interested in
Choose TWO of the responses that describe disadvantages of Roth IRAS
insens350 [35]

Answer:

You pay taxes upfront

the maximum contribution is low

Explanation:

UTP quiz

6 0
2 years ago
Dogs R Us has two product lines: collars and leashes. Income statement data forecasted for next year is as follows: COLLARS LEAS
Temka [501]

Answer: -$2,565

Explanation:

Operating Income with the Leashes line is $11,000.

If the Leashes line is dropped, the operating income would be:

= Sales of Collars - Variable expenses - Fixed expenses of Collars - Residual fixed expenses pf Leashes

= 210,000 - 135,000 - 56,000 - (38,000 - 27,435)

= $‭8,435

Change in Total income =  Income without Leashes - Income with LEASHES

= 8,435 - 11,000

= -$2,565

8 0
3 years ago
Lisah, Inc., manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $5,700 from sales $201,0
Sunny_sXe [5.5K]

Answer:

The computation of given question is below:-

Explanation:

                                 Continue          Eliminate     Net income/Loss

Sales                         $201,000         $0                ($201,000)

Variable cost            $176,000          $0                $176,000

Contribution margin $25,000          $0                 ($25,000)

Fixed cost                  $30,700          $20,000       $10,700

Net income/ loss       ($5,700)          ($20,000)      ($14,300)

In Net Income, Eliminating the product line is leading to Decrease by $15,400, the product line should be continued.

7 0
2 years ago
Many of today's supervisors are having to learn to manage in a world of constant:
Stella [2.4K]
The answer that will complete the sentence above is change. It is because change has affected a lot of things as well as the area of marketing or business. With change, things changes completely or differently depending on the new things that are being discovered and are arising as time passes by. Supervisors are expected to learn to manage these changes for they are the ones who supervises their team and to do that, they should know how to adapt in these changes for the benefit of their team or company.
8 0
2 years ago
Yesterday, the president of RB Enterprises received a phone call from DLK, a competitor. DLK is a sole proprietorship. An unexpe
luda_lava [24]

Answer:

Speculative

Explanation:

Investors/ traders normally use this tactic to hold cash so as to make the best use of any investment opportunity that may come up

Keeping all money invested doesn't always provide the best solution  all the time. Maintaining some  amount of liquidity in one's portfolio is one of the top priorities for an investor. Generally, investors keep a fair amount of such cash with them so as to earn higher profits.

.In such a situation as RB enterprises was put in , the cash kept  aside by the them equips him to exploit such an attractive investment opportunity. This is known as speculative motive.

7 0
3 years ago
Other questions:
  • At the end of year 1, Rome Inc. held debt securities classified as available-for-sale securities. The securities were carried at
    7·1 answer
  • What are three techniques stockholders can use to motivate managers to maximize their stock’s long-run price? Should managers fo
    5·1 answer
  • Marta, the public relations manager of a local library, is meeting with the news media regarding a new reading program for child
    8·1 answer
  • Why are job referrals valuable to both job seekers and employers?​
    10·1 answer
  • Spencer wants to work in a field that relates to alternative energy sources. His research suggests these careers (see list below
    10·1 answer
  • What were the impacts of the fur trade on society in terms of economics, culture, technology, nature, and the government? Did Ro
    12·1 answer
  • The beliefs, attitudes, and behavior associated with a person or group; a way of life.
    12·1 answer
  • abuat Corporation, which has only one product, has provided the following data concerning its most recent month of operations: S
    10·1 answer
  • What is the approximate present value of $1 that will be paid to you in 3 years if the interest rate were 5 percent?
    5·1 answer
  • A merger that joins two companies involved in different but related levels of an industry is a(n) ______ merger.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!