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
Stella [2.4K]
3 years ago
6

On June 1, 2021, Wildhorse & Sons sold equipment to James Landscaping Service in exchange for a zero-interest bearing note w

ith a face value of $106800, with payment due in 12 months. The fair value of the equipment on the date of sale was $90000. The amount of revenue to be recognized on this transaction in 2021 is
a. $106800.
b. $16800.
c. $90000.
d. $90000 sales revenue and $9800 interest revenue.
Business
1 answer:
Alja [10]3 years ago
8 0

Answer:

d. $90000 sales revenue and $9800 interest revenue.

Explanation:

Note will be recorded on the fair value of equipment and the net difference of the zero interest bearing bond and the fair value of he equipment will be recorded as the interest income.

Amount of sale = $90,000

Interest amount = $106,800 - $90,000 = $16,800

As only 7 months have been passed until end of 2021 from the date of sale

only interest of 7 months is recognized.

Interest income recognised in 2021 = $16,800 x 7 /12 = $9,800

You might be interested in
Last year, Natalie submitted her idea for a redesigned bicycle seat on the Fast Flyers Bikes website. She learned this week that
Tems11 [23]

Answer:

microblogging

Explanation:

Natalie has submitted her idea in a website. Her idea was supported by greater number of people. Natalie did not expected that her idea would gain such significance and will be voted as winning.

4 0
2 years ago
Problem 5-35 Comparing Cash Flow Streams [LO 1] You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They
Minchanka [31]

Answer:

PV of 1st option = $185,015.50

PV of 2nd option = $192,683.78

Explanation:

Computing the present value of the monthly payments, we use the formula PV = \frac{A(1-(1+r)^{-n}) }{r}

Where PV = present value of the monthly payments

A = monthly salary

r = monthly interest rate = 6%/12 = 0.5% = 0.005

n = number of months = 24 months

PV of the 1st option, $8,200 monthly for the next 2 year

PV = \frac{8,200(1-(1.005)^{-24}) }{0.005} = $185,015.50.

PV of the 2ns option, $6,900 monthly + $37,000 signing bonus

PV = \frac{6,900(1-(1.005)^{-24}) }{0.005}+37,000 = $155,683.78 + $37,000 = $192,683.78.

7 0
3 years ago
Shiffon Electric Group wants to enter the European market via a wholly owned subsidiary where there are already well-established
Aleonysh [2.5K]

The most suitable mode of entry for Shiffon Electric into the European market will be through <u>acquisition</u>.

<h3>What is an acquisition?</h3>

This is a business arrangement whereby a company purchases most or all of another company's shares to gain control of that company.

Thus, this business arrangement will allow Shiffon Electric Group to enter into the market effectively and have market share despite number of well-established incumbent enterprises.

Read more about acquisition

<em>brainly.com/question/24519774</em>

5 0
2 years ago
Merging and milking brands are examples of? creating brand extensions. increasing brand loyalty. liquidating brands from a produ
kompoz [17]

Merging and milking brands are examples of creating brand extensions.

Brand extension refers to the process in which a firm markets a new product by using its established brand names. It is a way to take advantage of the company’s already established brand equity to increase the market and reach of the new product.

The assumption is that consumer loyalty, familiarity, brand popularity and reputation of the producer will ensure that the product is readily integrated into the market. Product extension can further help in expanding the reach of the product to new markets and consumer base, and increase overall profit margins as a result.

To learn more about brand extensions: brainly.com/question/13949619

#SPJ4

5 0
1 year ago
Summerdahl Resort’s common stock is currently trading at $36 a share. The stock is expect- ed to pay a dividend of $3.00 a share
Zigmanuir [339]

Answer:

<u>Cost of common equity is 0.1333 or 13.3%</u>

Explanation:

P= D1/(r-g)

D1=3.00

g= 0.05

P=36

Here we have ,

3.00/(r-0.05) = 36

r-0.05= 3/36= 0.08333

r= 0.1333= 13.33%

6 0
3 years ago
Read 2 more answers
Other questions:
  • Key practices in the partnering approach to managing contracted relationships include
    15·1 answer
  • Bank account register definition
    6·1 answer
  • Craft, Inc. normally produces between 120,000 and 150,000 units each year. Producing more than 150,000 units alters the company'
    8·1 answer
  • Joe makes an hourly salary of $8.10 for 40 regular hours of work. For each hour worked over 40 hours, he is paid at a rate of $1
    13·1 answer
  • Before the case of Macpherson v Buick Motor Car in 1916, the law based liability for injuries due to a defective product on:____
    11·1 answer
  • The ethics code at the company where quincy works sets forth a strict "no tolerance" policy for accepting gifts from suppliers o
    10·1 answer
  • Garrison Shops had a SUTA tax rate of 3.7%. The state's taxable limit was $8,000 of each employee's earnings. For the year, Garr
    13·1 answer
  • Suppose that a young couple has just had their first baby and they wish to insure that enough money will be available to pay for
    8·1 answer
  • Even when competitive firms are unable to calculate marginal revenue product directly, _________________________________________
    13·2 answers
  • Which athlete received the largest contract in the history of sports? mike trout lionel messi patrick mahomes lebron james.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!