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Gre4nikov [31]
4 years ago
10

Sunland Company borrowed $1,028,960 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition,

the company had outstanding all year a 10%, 5-year, $2,013,900 note payable and an 11%, 4-year, $3,826,400 note payable. Compute the weighted-average interest rate used for interest capitalization purposes.
Business
1 answer:
Lynna [10]4 years ago
4 0

Answer:

10.66%

Explanation:

The computation of the weighted-average interest rate is shown below:

Particulars                                         Principal                     Interest

10%, 5-year note payable               $2,013,900                $201,390

11%, 4-year note payable                $3,826,400                $420,904

Total amount                                   $5,840,300                $622,294

So, the weighted-average interest rate would be

= $622,294 ÷  $5,840,300

= 10.66%

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4 0
4 years ago
Donna runs an inn and charges $300 a night for a room, which equals her cost. Sam, Harry, and Bill are three potential customers
alina1380 [7]

Answer:

a. $25

Explanation:

According to the given situation, the computation of deadweight loss of the tax is shown below:-

Deadweight Loss = 1 ÷ 2 × 1 × ($350 - $300) = 1 ÷ 2 × ($50)

Or, Deadweight Loss = 1 ÷ 2 × ($50)

Or,  Deadweight Loss = $25

Therefore the correct option is a. $25

We simply considered the above values so that the deadweight loss of the ta could come

6 0
3 years ago
John works in the accounting department but travels to other company locations. He must present the past quarter's figures to th
satela [25.4K]

Answer: Availability of data

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In the given case John forgot to update the power point presentation leading to non availability of data that he needed to present. The first step in any process of presentation is data availability, so therefore, we can conclude that john will not be able to give his presentation.

6 0
3 years ago
If a firm belives tht some of its debtors may default and it should act on this by making sure tht all possible losses are recor
Maurinko [17]

Answer: Conservatism

Explanation: The conservatism concept can be ncept may be explained as an accounting principle which ensures that an organization tends to be very careful in handling its finances, with the conservatism concept, financial management often lean towards an approach which tends to play down future gains and concentrate more on potential chances of losses in the future. With such approach the organization tends to be very prudent in its financial management. In other words, conservatism shifts toward a tendency to understate its asset or income rather than overstate its asset.

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3 years ago
Cardco Inc. has an annual accounting period that ends on December 31. During the current year a depreciable asset that cost $46,
nexus9112 [7]

Answer:

$3,433.33

Explanation:

Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.

It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset

Mathematically,  

Depreciation = (Cost - Salvage value)/Estimated useful life

Annual depreciation

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In the current year, the asset would only be depreciated for 4 months

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= $3,433.33

6 0
3 years ago
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