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3 years ago

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Assets acquired in a lump-sum purchase are valued based on:a. Their assessed valuation.b. Their relative fair values.c. The pres

ent value of their future cash flows.d. Their cost plus the difference between their cost and fair values

1 answer:

aniked [119]3 years ago

8 0

Answer:

the correct answer is

b. Their relative fair values.

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Marigold Incorporated sold $295,000 of accounts receivable to Gannon Factors Inc. on a with recourse basis. Gannon assesses a 2%

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Answer:

Dr Cash $257,900

Dr Due from Gannon Factors $17,700

Dr Loss on Sale of Receivables $19,400

Cr Accounts Receivable $295,000

Cr Recourse Liability $13,500

Dr Accounts Receivables $295,000

Cr Due to Customer $17,700

Cr Interest Revenue $5,900

Cr Cash $257,900

Explanation:

Journal entries

Dr Cash $257,900

Dr Due from Gannon Factors $17,700

Dr Loss on Sale of Receivables $19,400

Cr Accounts Receivable $295,000

Cr Recourse Liability $13,500

Dr Accounts Receivables $295,000

Cr Due to Customer $17,700

Cr Interest Revenue $5,900

Cr Cash $257,900

*6% X $295,000 =$17,700

*2% X $295,000 =$5,900 +$13,500=$19,400

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On the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7% bonds to finance its operations of produci

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Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

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4 years ago

Your client, Brooke, decides to start saving for her son's college tuition. Her son was born today and will go to college at age

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Answer:

The present value of the total amount that Brooke needs to have saved at the beginning of her son's first year of college is 31.959,13

Explanation:

Tuition Fees after inflation at

Year 18 = 15000* ( 1+6.5%)18 = 46599.8157

Year 19 = 15000* ( 1+6.5%)19 = 49628.8037

Year 20 = 15000* ( 1+6.5%)20 = 52854.6759

Year 21 = 15000* ( 1+6.5%)21 = 56290.2299

Since discount rate = 10%

So discount factor = 1+r = 1+10% = 1.1

Since fees are paid at beginning of period hence

Present Value of Fees = Fees (year 18)/1.1^18 +Fees at Year 19/1.1^19 +Fees at Year 20/1.1^20 + Fees at year 21/1.1^21 = 46599.8157/1.1^18 + 49628.8037/1.1^19 + 52854.6759/1,1^20 + 56290.2299^21 = 31959.13

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