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Paladinen [302]
3 years ago
12

Greenwell Farm Equipment sells a tractor to Farmer for $130,000 on January​ 1, 2019. The tractor is delivered that day. Greenwel

l agrees that the Farmer may delay the payment for 2 years. The market rate of interest is 10​%. Refer to Greenwell Farms. How much interest revenue will Greenwell report over the life of this​ contract? (Do not round intermediary​ calculations, and round your final answer to the nearest whole​ number.) Use the formula approach
Business
1 answer:
agasfer [191]3 years ago
7 0

Answer:

Present value of interest is $5,062 and future value is $5,796        

Explanation:

The formula for finding the Present value of the interest reported as revenue is calculated as under:

Present Value of $40,000 receivable in 2 years = $40,000 / (1+7%)^2

Present Value of $40,000 receivable in 2 years = $34,938

The difference of the future value receivable and present value of the future amount receivable is the interest's present value which is given as under:

Interest Present value = $40,000 - $34,938 = $5,062

Using the compounding formula, the future value of the interest that will be recorded in the financial statement will be = $5,062 * (1 + 7%)^2 years

Future value of interest = $5796

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Decision making can be performed by individuals or groups and includes employees as well as operational, middle, and senior managers. There are four stages in decision making: intelligence, design, choice, and implementation.

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3 years ago
Anne is a full-time student at UCLA buts works part-time as a waitress at a diner near her dormitory. She earns an hourly wage b
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Answer:

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3 years ago
If a company is considering the purchase of a parcel of land that was acquired by the seller for $90,000 is offered for sale at
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Answer:

$147,000

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On September 15, 2021, the Scottie Company board of directors declared a 8% stock dividend on common shares. The shares are to b
iren [92.7K]

Answer:

Date         General Journal                             Debit           Credit

Sept 15     Stock dividend                           $2,342,400

                 (1,200,000*8%*24.4)

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                          Paid in capital in excess of par-              $1,862,400

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Oct 1         No Journal entry

Oct 10       Common Stock dividend             $480,000

                 distributable  

                           Common Stock                                          $480,000

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Which account would you have a debit card linked to?
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