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Firdavs [7]
3 years ago
12

On December 31, 2014, Flint Corporation sold for $100,000 an old machine having an original cost of $180,000 and a book value of

$80,000. The terms of the sale were as follows:
$20,000 down payment
$40,000 payable on December 31 each of the next two years
The agreement of sale made no mention of interest; however, 9% would be a fair rate for this type of transaction. What should be the amount of the notes receivable net of the unamortized discount on December 31, 2012 rounded to the nearest dollar? (The present value of an ordinary annuity of 1 at 9% for 2 years is 1.75911.)
a. $70,364
b. $90,364.
c. $80,000.
d. $140,728.
Business
1 answer:
Elina [12.6K]3 years ago
7 0

Answer:

a. $70,364

Explanation:

We must determine the present value of the notes receivable using the 9% discount rate.

PV of accounts receivable = $40,000 / 1.09 + $40,000 / 1.09² = $36,697.25 + $33,667.20 = $70,364.45

When a notes receivable is issued and carries no interests, you have to record the present value of the notes receivable in order to determine the amount that should be recorded as interest income in the future. In this case, interest income = $80,000 - $70,364 = $9,636

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Answer:

"CBAs" would be the appropriate answer.

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6 0
3 years ago
The Jolly Partnership reported the following items for the current year: Income from clients $190,000 Short-term capital gains 1
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Answer:

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Explanation:

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So the ordinary income for Jolly Partnership is:

Income from clients $ 190,000

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4 0
4 years ago
According to the Buy America Act, if a company wishes to win a contract from a U.S. government agency to provide some equipment,
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Answer:Local content requirements (LCRs

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6 0
3 years ago
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Transactions in a Job Order Cost System Five selected transactions for the current month are indicated by letters in the followi
jeka94

Each of five transactions can be defined as follows:

a) Authorization for use of materials (both direct and indirect).

b) Work used in the factory  (both direct and indirect).

c) Factory over-the-counter application to employment.

d) Fulfilled jobs.

e) Goods selling costs.

Following are the description of the transaction:

For a)

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For c)

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For d)

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For e)

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Learn more:

brainly.com/question/21487187

8 0
3 years ago
Which accurately describes an english achievement during the industrial revolution that improved mining production? andrew meikl
Deffense [45]
<span>The answer is james watt created an improved steam engine to pump water out of mines 
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Due to Watt's deisgn, the machine could almost doubled in productivity and it started to be developed for other industries beside minings</span>
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4 years ago
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