Answer:
$ 39,165.00
Explanation:
the amount expected from customer in one year is the face value of the note receivable plus interest i.e $40,000*105%=$42,000
The interest on discounting is :
$42,000*9%*9/12=$2,835
The amount of cash that Ireland would receive from the Cloverdale Bank is the amount that Cloverdale would on maturity of the note receivable i.e $42,000, less the discount on the note of $2,385
cash received=$42,000-$2,835=$ 39,165.00
Cloverdale would pay $ 39,165.00 on September 2021 to Ireland Corporation
Let's start it this way. Since a market system is a system of profit and loss, naturally, both profit or loss will play a vital role in the equation or system. Capitalist economies depend on markets when it comes to their economic activities. The market's role is to serve as a basis for them in determining what profitable activities and enterprises should the people invest on.Without the presence of loss in the equation of a market system, these people will not be able to determine where they should invest and/or withdraw from. Therefore, people base their decision of using their resources through knowing first the profit and loss. The loss will help them go away from companies or activities which will bring the losses.The downside for using the government in shielding companies from having losses is that the government will be abused by these companies. Since all companies will naturally want to not experience having losses.
D a is the correct answer I’m pretty sure
Answer:
Avoidable interest is $272,064.
Explanation:
Compute the interest on new notes payable, using the equation as shown below:
Interest = Principalof 13% note payable × Rate of interest
=$1,059,300×13%
=$137,709
Hence, the interest of new notes payable is $137,709.
Compute the interest of outstanding notes payable using the equation as follows:
Interest = Outstanding principal × Weighted average interest rate
=$1,268,700×10.59%
=$134,355
Hence, the interest of outstanding principal which is needed to be considered for the calculation of avoidable interest is $134,355
Avoidable interest is $272,064.
Answer:
$30,000
Explanation:
Given that,
Equipment Cost = $175,000
Allowed depreciation = $55,000
Selling price of Equipment = $150,000
Total Value of Assets:
= Equipment Cost - Allowed depreciation
= $175,000 - $55,000
= $120,000
Income from sell of Equipment:
= Selling price of Equipment - Total Value of Assets
= $150,000 - $120,000
= $30,000
So, According to Section 1245 generate ordinary income of $30,000.
