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elena-14-01-66 [18.8K]
3 years ago
8

On January 1, 2020, Ann Price loaned $212355 to Joe Kiger. A zero-interest-bearing note (face amount, $275000) was exchanged sol

ely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2022. The prevailing rate of interest for a loan of this type is 9%. The present value of $275000 at 9% for three years is $212355.
What amount of interest income should Ms. Price recognize in 2020?
Business
1 answer:
Evgesh-ka [11]3 years ago
3 0

Answer:

$19,112

Explanation:

Data provided as per the question below:

Price loaned = $212,355

Rate of percentage = 9%

The computation of interest income is shown below:-

Interest income = Price loaned × Rate of percentage

= $212,355 × 9%

= $19,112

Therefore for computing the interest income we simply multiply the price loaned with rate of percentage.

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Z-Mart appropriately uses the installment sales method of accounting for its installment sales. During 2013, Z-Mart made install
Tresset [83]

Answer:

                                        Dr.                  Cr.

Sale

Account Receivable    $300,000

Inventory                                          $210,000

Deffered Gross Profit                      $90,000

Payment Receipt

Cash                             $135,000

Account Receivable                        $135,000

Profit Recognition

Deffered Gross Profit  $40,500

Relaized Gross Profit                      $40,500

Explanation:

On sale a receivable is recorded and goods has been transferred to customer and its cost is been deducted from inventory. The Gross profit is deferred until the receipt of payment.

Deferred Profit = $300,000 x 30% = $90,000

Inventory cost = $300,000 - $90,000 = $210,000

Cash received from the customer, profit proportionated to the the cash receipt is realized gross profit.

Realized Profit = $135,000 x 30% = $40,500

5 0
3 years ago
Deep earth extraction inc. operates a facility near estuary bay. discharging waste from the facility into the bay can result in:
icang [17]

Discharging waste from the facility into the bay can result in a. <u>penalties </u><u>and damages</u>.

Many companies are known to discharge their wastes in an estuary bay. Such companies are subjected to heavy penalties by the government and also as there are aquatic organisms in a bay, the toxic compounds from the water can cause damaging results to the bay ecosystem.

Hence, companies such as Deep earth extraction inc, they discharge waste in the bay, and there are penalties and damages that they have to afford due to the risk they had caused to the bay. All companies should make sure to have a proper disposal system where other life forms and the earth is not damaged by the toxic wastes.

To learn more about waste, click here:

brainly.com/question/19152477

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8 0
1 year ago
The cost C and the revenue R for a brokerage firm depend on the number T of transactions executed. (Both C and R are measured in
marusya05 [52]

Answer:

C(T) = $730 + $25T

R(T) = $35T

T = 193 transactions

Explanation:

Given that:

C = cost ; R = revenue ; T = number of transactions

Amount paid per transaction = $25

Cost keeping office open = $730

Amount collected on each transaction = $35

(a) Find a formula that gives C as a function of T.

C(T) = Cost of keeping office open + (cost per transaction × number of transactions)

C(T) = $730 + $25T

(b) Find a formula that gives R as a function of T.

R(T) = (Amount collected per transaction * number of transactions)

R(T) = $35T

(c) Find the number of daily transactions that are needed to make the revenue $1200 more than the cost.

R = C + 1200

Substitute the value of R and C into the equation:

35T = 730 + 25T + 1200

35T - 25T = 730 + 1200

10T = 1930

T = 1930 / 10

T = 193 transactions

6 0
3 years ago
George, a wealthy investor, is uncertain whether he should invest in taxable or tax-exempt bonds. What tax and nontax factors sh
3241004551 [841]

Answer:

The classification including its subject in question is outlined in the section given elsewhere here.

Explanation:

1...

<u>Tax</u>

  • Tax-Exempt Bonds: Municipal bonds gain financially by being able to benefit from income and sales taxes. This will give the company the added value with just paying taxes whenever the moment arises.
  • Taxable Bonds: Nonetheless, taxable bonds allow the borrower to pay county and national taxation, and therefore are usually sold to ventures that do not help the common person.

<u>Rate of Return</u>

  • Tax-Exempt Bonds: Municipal bonds, and perhaps tax-exempt treasuries, bring a lower cost of capital than that of the subject to tax paid great also because the investment company was also tax-exempt.
  • Taxable Bonds: Taxable investors consider a rate of profitability for the market. Because this yield is greater than those of mutual funds, measurements of yields are necessary on a constant schedule.

<u>Net Taxable Income </u>

  • Tax-Exempt Bonds: Throughout comparative analysis with either a municipal bond, developers could receive less profit with a taxable contract however if designers earn a lower profit margin.
  • Taxable Bonds: In comparison to something like a municipal bond, we might also receive less money with such a subject to tax contract even however we are accruing a higher rate of return.

<u>Yield Comparison </u>

  • Tax-Exempt Bonds: The proportion of tax deductible-equivalent production will always be lower than that of the subject to tax production.
  • Taxable Bonds: The portion of taxable-equivalent production would always be significantly greater than that of the exempt yield. It's indeed attributable to the deduction of residential mortgage taxes.

2...

  • The description prepaid benefit applies to any payment received in conjunction with and therefore is specifically due to, a debt that lasts past every end of the following term in which that payment is obtained. We implement the accounting method of the accounts under managerial statements.
  • Incorporation throughout Gross Income gets to decide underneath the accrual ability to earn instead of just receiving the products. Payment method income taxpayers cause prosecutorial misunderstanding over all the natural environment of revenue recognition.
  • The simplification of most courts assumes that revenue may accrue before or on before receipt but have never during the. Extra cash collected to proceed with productivity is therefore taxable instead of receiving.
6 0
3 years ago
When you buy a _____ you are loaning money to an organization
Pavlova-9 [17]
<span>D Index fund I know this is the right answer</span>
5 0
3 years ago
Read 2 more answers
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