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Dmitry [639]
4 years ago
12

For which buyer would a lender most likely approve a $200,000 mortgage?

Business
2 answers:
Yakvenalex [24]4 years ago
8 0

Available options:

  1. a person with a credit score of 800 with a large amount of debt who has recently switched to a lower-paying job
  2. a person with a credit score of 760 with a small amount of debt who has had steady employment for many years
  3. a person with a credit score of 650 with a large amount of available credit who has a low-paying, but steady job
  4. a person with a credit score of 600 with a small amount of available credit who has recently switched to a high-paying job

Answer:

2) a person with a credit score of 760 with a small amount of debt who has had steady employment for many years

A credit score higher than 660 is considered good, above 720 is very good and above 800 is extremely good. Banks will usually lend money to individuals with a good credit score, but the interests and other specific terms might not be as good as for individuals with very good or excellent credit scores.

The problem with the individual in option 1 is that he/she already has a lot of debt and probably has been recently fired and is switching to a lower paying job. The combination of less income plus high monthly payments is never good. You must remember credit scores are based on historical data, and things can change very quickly.

While the individual in option 2 has a very good credit score, doesn't have a lot of debt and has been steadily employed for several years, this is a really combo for banks.

jolli1 [7]4 years ago
5 0
I think the answer is B: a person with a credit score of 760 with a small amount of debt who has had steady employment for many years. 

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Depreciation Methods On January 2, 2018, Skyler, Inc. purchased a laser cutting machine to be used in the fabrication of a part
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Answer:

Part A  

1. Straight-line.    

Year   Depreciation expenses ($)  

2018  228,750  

2019  228,750  

2020  228,750  

2021  228,750  

2. Double-declining balance.  

Year   Depreciation expenses ($)  

2018  460,000  

2019  230,000  

2020  115,000  

2021  110,000  

3. Units-of-production. (Assume annual production in cuttings of 200,000; 350,000; 260,000; and 110,000.)    

Year   Depreciation expenses ($)  

2018  198,913  

2019  348,098  

2020  258,587  

2021  109,402  

Part B  

1. Straight-line.    

Year   Depreciation expenses ($)  

2018  114,375  

2019  228,750  

2020  228,750  

2021  228,750  

2022  114,375  

2. Double-declining balance.  

Year   Depreciation expenses ($)  

2018  230,000  

2019  345,000  

2020  172,500  

2021  86,250  

2022  81,250  

3. Units-of-production. (Assume annual production in cuttings of 200,000; 350,000; 260,000; and 110,000.)    

Year   Depreciation expenses ($)  

2018  99,457  

2019  273,505  

2020  303,342  

2021  183,995  

2022  54,701  

Explanation:

Note: See the calculation in the attached excel file.

Download xlsx
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Answer:

cash 16,930

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Explanation:

Pozzi works his accounting under cash basis. This means it do not recognize any interest revenue over the past of time. It will recognize the gain on the loan entirely at maturity, when the cash is received.

Therefore his journal entry at maturity will be:

a debit to cash forthe received amount

a credit to note receivable, to write-off the balance

and a credit to interest revenue to recognize this gain.

3 0
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