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3 years ago

Al's obtained a discount loan of $78,500 today that requires a repayment of $98,000, 3 years from today. What is the APR

Business

2 answers:

Andrei [34K]3 years ago

8 0

Answer:

R = 8.2803%

Rounded: 8%

Explanation:

Solving our equation:

r = (1/3)(98000/78500) - 1) = 0.08280255

r = 0.08280255

Converting r (decimal) to R a percentage

R = 0.08280255 * 100

= 8.2803%

Hope this helped! :D

kondor19780726 [428]3 years ago

6 0

R= 1/3 open bracket ( 98000/98500) -1)
R=0.8280255
0.8280255 x 100

=8.82803%

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Answer:

The correct answer is b. The letter of intent is an invitation to negotiate, which is not an offer.

Explanation:

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3 years ago

On January 1, Cullumber Corporation purchased a 25% equity in Helbert Corporation for $182,000. At December 31, Helbert declared

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Answer:

January 1

Debit : Investment in Helbert Corporation $182,000

Credit : Cash $182,000

Being Investment in Associate

<em>Elimination Journal:</em>

Debit : Investment in Associate ($236,500 x 25%) $59,125

Credit : Share of Profits ($236,500 x 25%) $59,125

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Debit : Cash ($47,900 x 25%) $11,975

Credit : Dividend Income ($47,900 x 25%) $11,975

Being Dividend Income Received from Associate

<em>Elimination Journal:</em>

Debit : Dividend Income $11,975

Credit : Investment in Associate $11,975

Explanation:

Cullumber Corporation 25% equity in Helbert Corporation represents an investment in Associate. This is because, Cullumber Corporation has significant control of Helbert Corporation ( more than 20% voting rights).

Note : I have also included consolidation elimination journals !

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3 years ago

A company sells a product for $3. Direct materials are $1.80 per unit. The company prepares a flexible budget at two sales volum

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Answer:

$150 for budgeted direct materials and $180 for budgeted direct materials.

Explanation:

You take direct materials of 1.80 x sales volume of 50 units= budgeted direct material $90

To find a sales volume of 60 units, you take $1.80 of direct material X sales volume of 60 units= budgeted direct material of 108.

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2 years ago

Which of the following would be considered common financing activities: Sale of Common Stock Purchasing fixed assets Payment of

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Answer:

The correct answer to the following question is D) both options A ( sale of common stock ) and C ( payment of cash dividend ) would be considered as common financing activities.

Explanation:

Financing activities, whenever we talk about this, we refer to cash flow from financing activities , where cash flow is a form of financial statement which shows changes in balance sheet accounts and income statements accounts affect a company's cash and cash equivalents, and cash flow from financing activities is one of the three components of cash flow statement , where we will record all the cash inflows and outflows from the company which are related to financing activities. IN this type of activities we will include sale and purchase of stock, issuing of stocks, borrowing and repaying of short term and long term loans and also payment of dividends.

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3 years ago

Luke sold a building and the land on which the building sits to his wholly owned corporation, Studemont Corp., at fair market va

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Answer:

A. $126,500

B. $44,000

Explanation:

A. Calculation for What is the amount and character of Luke's recognized gain or loss on the building

First step is to calculate the Adjusted basis

Adjusted basis=$437,500-$91,500

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Now let calculate the Ordinary Gain / (Loss) recognized

Ordinary Gain / (Loss) recognized=$472,500-$346,000

Ordinary Gain / (Loss) recognized=$126,500

Therefore the amount and character of Luke's recognized gain or loss on the building will be $126,500

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Less Cost of land $177,000

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($221,000-$177,000)

Therefore the amount and character of Luke's recognized gain or loss on the land will be $44,000

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3 years ago