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Bumek [7]
3 years ago
8

Leaf Co. purchased from Oak Co. a $20,000, 8%, 5-year note that required five equal, annual year-end payments of $5,009. The not

e was discounted to yield a 9% rate to Leaf. At the date of purchase, Leaf recorded the note at its present value of $19,485. What should be the total interest revenue earned by Leaf over the life of this note?A. $5,560B. $8,000C. $5,045D. $9,000
Business
1 answer:
Shtirlitz [24]3 years ago
6 0

Answer:

A. $5,560

Explanation:

The computation of the total interest revenue is shown below:

= Five-year payments received of note payable - present value of note payable

where,  

Five-year payments received of note payable =  Annual year payment received × number of years

= $5,009 × 5 years

= $25,045

And, the present value of the note payable is $19,485

Now put these values to the above formula

So, the value would equal to

= $25,045 - $19,485

= $5,560

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Swifty Corporation had the following selected transactions.
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Answer:

Missing word <em>"Indicate the effect each transaction has on the accounting equation, (Assets = Liabilities + Stockholders' Equity), using plus and minus signs."</em>

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1. Increase(+)         No Effect            Increase(+)

2. Decrease(-)       No Effect            Decrease(+)

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3 years ago
The replacement of a planning machine is being considered by the Reardorn Furniture Company.​ (There is an indefinite future nee
belka [17]

Answer:

During the first year, the marginal cost equals approximately the minimum EUAC cost. This is why the minimum cost of EUAC to maintain the defender throughout the year is $21,000. Since the minimum EUAC cost to maintain the defender the first year is less than the minimum EUAC cost to the challenger, the defender should not be substituted. This means, it is not economically feasible to make the replacement at this time.

Explanation:

According to the exercise, it is necessary to evaluate to know if it is economic to replace the defender by the challenger. For the calculation, the defender's information is: the defender's market value up to $3000. The expenses are $20000. The information regarding the challenger is: the installation cost $30000, the annual expenses $ 16000, the surrender value $ 2000, the economic life is 12 years, and the interest rate before taxes is 15%.

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4 0
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Answer:

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