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
SOVA2 [1]
3 years ago
14

On Kyle Thomason’s $400,000.00 loan, the lender charges a 2-point service charge. In this situation, how much will Kyle have to

pay for this service charge at closing, and how would such a charge appear on the statement?
a) $800.00, as a debit to the buyer.
b) $8,000.00 as a credit to the buyer.
c) $8,000.00 as a debit to the buyer.
d) $80,000.00 debit to the buyer.
Business
2 answers:
bearhunter [10]3 years ago
6 0

Answer:

The answer is C

Explanation:

This is an interest expense.

In accounting, the rule is as follows:

Debit side increases asset and expenses while credit side decreases liability, shareholders' equity and sales or revenue.

Credit side decreases asset and expenses while credit side increases liability, shareholders' equity and sales or revenue.

2 points on $400,000 means the interest charge is 2 percent on $400,000.

So we have 0.02 x $400,000

$8,000.

It will be a debit side because it is an increase in expense.

likoan [24]3 years ago
5 0

Answer:

c) $8,000.00 as a debit to the buyer.

Explanation:

Point is referred to the percentage of anything. 1 point means 1%. 2 point service charges mean 2%of service charges of the total amount.

Amount of Loan = $400,0000

Service charges rate = 2 points / 2%

Service charges = $400,000 x 2% = $8,000

Service charges amount is paid by Kyle is an expense which is shown as debit as an expense

You might be interested in
The following is an example of _____ stop by our store this Saturday between 2 and 4 to get a free gift
Y_Kistochka [10]

Answer: a call to action

Explanation:

6 0
3 years ago
Which of the following choices is not an example of a common payroll deduction?
Zepler [3.9K]

Answer:

C

Explanation:

3 0
3 years ago
In unregulated monopoly: a consumers are confronted with a price that is lower than marginal cost. b consumers are confronted wi
dsp73

Answer:

c. because P > MC, a basic condition for efficiency is violated.

Explanation:

An unregulated monopoly is a market in which monopoly holders have control over goods and services, giving them the ability to do whatever they like. Under unregulated monopoly, having a free market is impossible as price gouging is always evident.

In unregulated monopoly a basic condition for efficiency is violated because price is greater than marginal cost (P > MC).

Where P is the price and MC is the marginal cost of goods.

3 0
3 years ago
Which of the following sectors should be restructured?
Marianna [84]
I really don’t know
6 0
3 years ago
A couple is required by their lender to have a down payment of 20% of the purchase price of the home they want to buy. if the co
Sedbober [7]
The answer is C because i just took the test and the answer was C so put C down and i bet 100% you'll get it right
5 0
3 years ago
Other questions:
  • - Safety (Security) Stock:
    7·1 answer
  • MARKING BRAINLIST!!! THE NAMES HAVE TO BE REALLY GOOD!
    11·2 answers
  • As the number of people holding college degrees increases, assuming the demand for college educated labor stays constant, the wa
    7·1 answer
  • Value-stream mapping_____________.a. is a variation of time-function mapping.b. examines the supply chain to determine where val
    10·1 answer
  • Owner of JavaJoint: Over the past year, the coffee store has become a daily hang-out for more and more teenagers. Many of our ad
    11·1 answer
  • Salad Express exchanged land it had been holding for future plant expansion for a more suitable parcel of land along distributio
    10·1 answer
  • 1. If Bodin Company plans to sell 480,000 units during the year, compute the number of units the firm would have to manufacture
    7·2 answers
  • An example of a cost that is likely to have a direct relationship with products being manufactured is
    14·1 answer
  • Infomercial are _than commercials.
    14·2 answers
  • The income effect indicates that a ______ price increases the purchasing power of income, enabling consumers to purchase ______
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!