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amid [387]
3 years ago
5

On October​ 1, 2019, Fashion Jewelers accepted a​ 5-month, 11% note for​ $7,500 in settlement of an overdue account receivable.

The accounting period ends on December 31. Calculate the accrued interest on the note at December​ 31, 2019.​ (Round any intermediate calculations to two decimal​ places, and your final answer to the nearest​ dollar.)
Business
1 answer:
Nataliya [291]3 years ago
7 0

Answer:

The accrued interest on the note at December​ 31, 2019 is $206.25

Explanation:

Fashion Jewelers accepted a​ 5-month, 11% note for​ $7,500.

The amount of interest for 1 year = 11% x $7,500 = $825

The amount of interest for 1 month = $825/12 = $68.75

From October​ 1, 2019 to  December 31, 2019, Fashion Jewelers has accepted the note for 3 months.

The accrued interest on the note at December​ 31, 2019 = $68.75 x 3 = $206.25

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3 years ago
A drink manufacturer finds setting up a plant to make its own bottle caps expensive and technically difficult. Which of the foll
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A) Outsourcing

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In each of the following scenarios, explain and categorize the cost of inflation.a) Because inflation has risen, the J.Crew clot
Kazeer [188]

Answer:

Consider the following explanation

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b) Grandpa has bought annuity which has promised $10,000 a year for the rest of his life. However, higher than expected inflation means grandpa has lesser purchasing power. This is loss of purchasing power and also 'redistribution cost'. In higher inflation borrower tends to get benefit. Here insurance company is at the gain.

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5 0
4 years ago
Fred contributes cash of $350,000 to Strumble Partnership for his 50% interest in the partnership. For his 50% interest Gary con
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Answer:

Gary's Basis in the partnership interest is $155,000

Explanation:

Particulars                                                                                Amount ($)

Adjusted Basis Of Land                                                          250000

Mortage*Share In Percentage ($200000*50%)                    (100000)

Additional Borrowing*Share In Percentage ($50000*50%)   (25000)

#Difference*Share In Percentage ($100000-$40000)*50%     30000

          Basis                                                                                    155000

Difference:

Net Income                                                                                   100000

Distribution Of Each Partner*2 ($20000*2)                                   (40000)

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