1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
svetlana [45]
3 years ago
12

On December 31, 2015, Waterway Industries is in financial difficulty and cannot pay a note due that day. It is a $2900000 note w

ith $290000 accrued interest payable to Carla Vista, Inc. Carla Vista agrees to accept from Waterway equipment that has a fair value of $1440000, an original cost of $2400000, and accumulated depreciation of $1160000. Carla Vista also forgives the accrued interest, extends the maturity date to December 31, 2018, reduces the face amount of the note to $1230000, and reduces the interest rate to 5%, with interest payable at the end of each year.
Nolte should recognize a gain or loss on the transfer of the equipment of


a. $0.

b. $120,000 gain.

c. $180,000 gain.

d. $570,000 loss.


Nolte should recognize a gain on the partial settlement and restructure of the debt of


a. $0.

b. $45,000.

c. $165,000.

d. $225,000.
Business
1 answer:
iris [78.8K]3 years ago
4 0

Answer:

(a) $210,000

(b) $351,500

Explanation:

(a) Given that,

Fair value of equipment = $1,440,000

Face Amount of the note = $1,230,000

Gain on sale:

= Fair value of equipment - Face Amount of the note

= $1,440,000 - $1,230,000

= $210,000

(b) Given that,

Accrued Interest Payable = $290,000

Interest rate = 5%

Gain on the partial settlement and restructure of the debt:

= Accrued Interest Payable + (Face amount of note × Interest rate)

= $290,000 + ($1,230,000 × 5%)

= $290,000 + $61,500

= $351,500

You might be interested in
A policy of permitting the people of a country to buy and sell where they please, without restrictions, is called:
jeyben [28]

Answer: free trade

Explanation:

A policy of permitting the people of a country to buy and sell where they please, without restrictions, is referred to as the free trade.

Free trade allows countries interact with one another and trade the foods and services that they've.

6 0
3 years ago
Identify the features of stocks and bonds
ch4aika [34]

Explanation:

How to "buy at wholesale, sell at retail" like financial institutions

How to navigate today's increasingly volatile markets and manage risk

Common mistakes of the novice investor and how to reduce them

How you can time the market by waiting for opportunity to come to you

A rules-based strategy for trading in any market and any asset class

3 0
3 years ago
Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process Inventory accou
kotykmax [81]

Answer:

1. Overhead rate = Overhead costs / Direct material costs

Overhead rate = $684,000 / $1,900,000

Overhead rate = 0.36

Overhead rate = 36%

2. How much direct labor cost and overhead cost are assigned to this job?

Total cost of job in process                      $71,000

Less: Overhead applied                            $7,920

          ($22,000 * 36%)

Less: Material cost of job in process        <u>$22,000</u>

Direct labor cost                                        <u>$41,080</u>

Hence, direct labor cost is $41,080 and Overhead cost is $7,920

8 0
3 years ago
Convert 32.7 kilograms to centigrams DUE IN 10 MIN
ryzh [129]

Answer:

A IS THE ANSWER

Explanation:

TO CONVERT KG TO CG YOU MULTIPLY YOUR NUMBER BY 100000 SO 32.7 x 100000 = 3,270,000 cg

8 0
2 years ago
FREEE POINTSSS!! DELETING THIS ACC :))
Margarita [4]

Answer:

Thx for the pointsssss

Explanation:

6 0
3 years ago
Read 2 more answers
Other questions:
  • An automobile company assembles cars in a plant and purchases batteries from a vendor in china. the average cost of each battery
    15·1 answer
  • Yes music is the authorized distributor for products of trompa instruments, a popular manufacturer of trumpets and other brass i
    14·2 answers
  • Degelman Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January
    9·1 answer
  • In many​ countries, people hold money as a cushion against unexpected needs arising from a variety of potential scenarios​ (e.g.
    10·1 answer
  • I am 16 1/2, I live in southern California and want to get a job in the summer is there any way to go about that?
    12·2 answers
  • Final exam Donald approves on behalf of Evelyn-but without authorization-a contract with Farouk to build a new silo. Evelyn does
    7·1 answer
  • I own a factory which I could lease for $100,000 per year. Instead I use it for my own business making PlayDo figures. I earn $2
    5·1 answer
  • If you own a business that operates in a certain building then you are liable for the condition of the building.
    13·1 answer
  • Coronado, Inc. uses activity-based costing as the basis for information to set prices for its six lines of seasonal coats.
    15·1 answer
  • Lindsey Paradise is not selected for her sorority of choice at the University of Kansas. She has used all of her time rushing to
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!