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zysi [14]
3 years ago
11

On January 1, 2021, Wright Transport sold four school buses to the Elmira School District. In exchange for the buses, Wright rec

eived a note requiring payment of $515,000 by Elmira on December 31, 2023. The effective interest rate is 8%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.): Required: 1. How much sales revenue would Wright recognize on January 1, 2021, for this transaction
Business
1 answer:
gavmur [86]3 years ago
7 0

Answer:

Sales revenue = $408,823.60

Explanation:

we must first determine the present value of the note:

PV = $515,000 / (1 + 8%)³ = $515,000 / 1.08³ = $408,823.60

discount on the note = $515,000 - $408,823.60 = $106,176.40

the journal entry should be:

January 1, 2021, school buses sold to Elmira School District

Dr Notes receivable 515,000

    Cr Sales revenue 408,823.60

    Cr Discount on notes receivable 106,176.40

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A proposed new investment has projected sales of $585,000. Variable costs are 44 percent of sales, and fixed costs are $187,000;
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Answer:

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Explanation:

The Pro- forma income Statement

Working Note:

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8 0
3 years ago
Consider the multi-factor APT with two factors. The risk premiums on the factor 1 and factor 2 portfolios are respectively 5% an
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Answer:

Option (B) 5.5%

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Data provided in the question :

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Expected return = 14%

Now,

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or

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6 0
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Under __________ requirements, the union must apply the terms of contract equally to all bargaining-unit employees. question 15
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