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lara [203]
3 years ago
15

Magenta Company purchased a machine from Pink Corporation on October 31, 2018. In payment for the $288,000 purchase, Magenta iss

ued a one-year installment note to be paid in equal monthly payments of $25,588 at the end of each month. The payments include interest at the rate of 12%. The amount of interest expense that Magenta will report in its income statement for the year ended December 31, 2018, is:
Business
1 answer:
Blababa [14]3 years ago
5 0

Answer:

$3,176 , it's two months of interests $1,588 + $1,588

Explanation:

If the company paid each month 1/12 of capital plus interest it means that it's necessary to deduct the total amount of interests paid each month.

The company paid $25,588 and the monthly capital it's $24,000, therefore the company paid on interest an amount of $1,588 each month.

The issue of a one year installment note means that the company repay the principal to the lender in a series of periodic payments, in this case each month pay principal plus interests

In the income statement we have to applied the accrual criteria which means that the company only recognize the interest paid in the past months, November and December.

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Firm A plans to introduce a new smart phone which has a potential market of 1 million customers. The marketing research conducte
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Answer:

a. Price it at $250 and $300 and use a discrimination strategy to reach the two segments of the market

Explanation:

In order to maximize the revenue the price must be applied. But at the same time the first have to use the price discrimination strategy for reaching the two segments

So, The maximized revenue is  

= (1,000,000 × 0.40 × $300 ) + (1,000000 × 0.60 × $250 )

= 120 million + 150 million

= $270 million

SO it would be lies in middle of $250 and $300

Hence, the first option is correct

5 0
3 years ago
What is one main feature of the free enterprise system?
SCORPION-xisa [38]

Answer:

People often use the terms free enterprise, free market, or capitalism to describe the economic system of the United States. A free enterprise economy has five important characteristics. They are: economic freedom, voluntary (willing) exchange, private property rights, the profit motive, and competition

Explanation:

People often use the terms free enterprise, free market, or capitalism to describe the economic system of the United States. A free enterprise economy has five important characteristics. They are: economic freedom, voluntary (willing) exchange, private property rights, the profit motive, and competition

3 0
3 years ago
Read 2 more answers
TLC Credit, Inc. has $35.0 million in consumer loans with an average interest rate of 12.0%. The bank also has $30.0 million in
MissTica

Answer:

$460,000 decrease

Explanation:

The computation of TLC's estimated change in revenues next year is shown below:-

TLC's estimated change in revenues next year = ((Consumer loan × Interest rate) + (Home equity loan × Interest rate) + (Corporate securities × Interest rate)) - ((Increased consumer loan × Decrease rate) + (Increase equity loan × Interest rate) + (Corporate securities × (1 - decreased percentage) × average interest rate))

= (($35.0 million × 0.12) + ($30.0 million × 0.O8) + ($5.0 million × 0.06)) - (($40.0 million × 0.10) +($32.0 million × 0.065) + (5 million × (1 - 20%)  × 0.09))

=$6,900,000 - $6,440,000

= $460,000 decrease

Therefore for computing the TLC's estimated change in revenues next year we simply applied the above formula.

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2 years ago
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Ministry of health and insurance
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3 years ago
What is the lack of cooperation by victims and witnesses in low-income, high crime neighborhoods often called?
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The lack of cooperation of witnesses is often called legal cynicism. <span>Lack of witness cooperation in the high crime rate of low-income communities is due several economic, social and emotional consequence witnessing may cause to them.  This la</span>ck of witness cooperation leads to frustrated cops and delayed court proceedings. 
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