On January 1, year 2, Connor Corporation signed a $100,000 noninterest-bearing note due in three years at a discount rate of 10%
. Connor elects to use the fair value option for reporting its financial liabilities. On December 31, year 2, Connor's credit rating and risk factors indicated that the rate of interest applicable to its borrowings was 9%. The present value factors at 10% and 9% are presented below. PV factor 10%, 3 periods .751 PV factor 10%, 2 periods .826 PV factor 10%, 1 period .909 PV factor 9%, 3 periods .772 PV factor 9%, 2 periods .842 PV factor 9%, 1 period .917 At what amount should Connor present the note on the December 31, year 2 balance sheet?
B. through negotiations between the parties involved.
Explanation:
correct answer is through negotiations between the parties involved because According to Coase theory, priority rights are best defined by negotiation between the parties involved and there is no transaction cost in negotiations.
The Coase theory states that when transaction costs are low, both parties can negotiate and reach an effective outcome in the presence of an outsider.
Refusing to hire a minority. It is illegal to discriminate based on race, gender, etc. The other options are valid reasons to choose not to hire someone
