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elena-14-01-66 [18.8K]
2 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]2 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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which stage in a work-unit activity analysis focuses on the product, information, or service provided?
maria [59]

The stage in a work-unit activity analysis that focuses on the product, information, or service provided is the output phase, This is further explained below.

<h3>What is the output phase?</h3>

Generally, the output phase is simply defined as manufacturing or output in general.

In conclusion, The final deliverable is defined. The method of measuring the output is investigated.

Read more about the output phase,

brainly.com/question/14863117

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4 0
1 year ago
Stuart Inc. is planning to lease computer equipment for its production and testing departments. Currently, the production and te
mina [271]

Answer:

INCREMENTAL cost allocation method

Explanation:

Incremental cost allocation method is the ranking of individual users of the cost object in such a way that the order of users most responsible for the common cost and then uses its ranking to allocate cost among those users. So they'd be ranked from primary user to first incremental user to second incremental user and so on until the cost have been assigned to all users. It requires one user to be seen as the primary user/party and other users to be seen as incremental user/party.

6 0
3 years ago
Read 2 more answers
Goodwill is: Multiple Choice Amortized over the greater of its estimated life or 40 years. The excess of the fair value of a bus
Svet_ta [14]

Answer:

Goodwill is:

The excess of the fair value of a business over the fair value of all net identifiable assets.

Explanation:

This definition of Goodwill implies that it is usually acquired by the purchaser of another business, when it pays a price higher than the fair market value of the other company's net assets.  It is not a physical asset like property, plant, and equipment, but intangible.

Goodwill arises from a company's good reputation, loyal customers or clientele base, brand identity, talented workforce, and proprietary technology.

Goodwill does not have a definite life and under US GAAP and IFRS standards.  Therefore, it is not amortized like other intangible assets but is evaluated for impairment every year.

8 0
3 years ago
Davita Spencer is a manager at Half Dome Asset Management. She can generate an alpha of 2% a year up to $100 million. After that
Dmitriy789 [7]

Answer:

a.  Zero

b. $200 million

c. $2 million

Explanation:

a. The investor invest regular in portfolio with the positive alpha until the portfolio size has driven alpha to zero.

 

b. Davita return 2% of $100 million = $2 million

1% fee \times X million total under management.

Than, X = $200 million

c. $200 million \times 1% fee given = $2 million

6 0
2 years ago
PHRASE TERM 1. A "plug" for the net effect of the current tax liability and changes in deferred tax assets and liabilities. 2. N
lesya [120]

This question is incomplete, here´s the complete question.  

Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the number for the most correct term.

Terms: Balance sheet classification, Income tax expense, Permanent difference, Temporary difference, Valuation allowance

1. A "plug" for the net effect of the current tax liability and changes in deferred tax assets and liabilities.

2. No tax consequences.

3. "More likely than not" test.

4. Produces future taxable amounts or future deductible amounts.

5. Noncurrent.

Answer:

1. A "plug" for the net effect of the current tax liability and changes in deferred tax assets and liabilities.

Income tax expense

2. No tax consequences. Permanent difference

3. "More likely than not" test. Valuation allowance

4. Produces future taxable amounts or future deductible amounts. Temporary difference

5. Noncurrent. Balance sheet classification

Explanation:

1. A "plug" for the net effect of the current tax liability and changes in deferred tax assets and liabilities. Income tax expense.

A deferred tax asset could be used to lessen taxable income.

A deferred income tax liability is the result of the difference between the income tax expense in the income statement and the income tax payable.

2. No tax consequences. Permanent difference

because

Since a permanent difference can never be erased, it won´t create deferred taxes.

3. "More likely than not" test. Valuation allowance

A valuation allowance is required agains a deferred tax asset if it´s "more likely than not" that part or even all of the deferred tax asset won´t be realized.

4. Produces future taxable amounts or future deductible amounts. Contrary to the permanent difference case, a temporary difference will produce future taxes.

5. Noncurrent. Balance sheet classification

Noncurrent assets appear in a balance sheet as investment, property, plant, equipment, intangible assets.

3 0
2 years ago
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