1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
konstantin123 [22]
3 years ago
15

On February 1, 2020, Sheridan Company factored receivables with a carrying amount of $710000 to Pharoah Company. Pharoah Company

assesses a finance charge of 4% of the receivables and retains 6% of the receivables. Relative to this transaction, you are to determine the amount of loss on sale to be reported in the income statement of Sheridan Company for February. Assume that Sheridan factors the receivables on a with recourse basis. The recourse obligation has a fair value of $3500. The loss to be reported is _____
Business
1 answer:
valkas [14]3 years ago
6 0

Assume that Sheridan factors the receivables on a with recourse basis. The recourse obligation has a fair value of $3500. The loss to be reported is
($710000 × 0.04) + $3500 = $31900.
You might be interested in
Melbourne Company uses the perpetual inventory method. Melbourne purchased 500 units of inventory that cost $4.00 each. At a lat
ra1l [238]

Answer:

$1,200

Explanation:

Calculation to determine what the amount of ending inventory appearing on the balance sheet will be:

First step is to determine the units in ending inventory

Units in ending inventory=500 units + 600 units – 800 units sold

Units in ending inventory= 300

Now let determine the Ending inventory

Ending inventory=300 units x $4.00

Ending inventory = $1,200

Therefore the amount of ending inventory appearing on the balance sheet will be:$1,200

5 0
3 years ago
As part of the initial investment, Ray Blake contributes equipment that had originally cost $96,100 and on which accumulated dep
Delicious77 [7]

Answer: $47,900

Explanation:

From the question, we are told that part of the initial investment, Ray Blake contributes equipment that had originally cost $96,100 and on which accumulated depreciation of $72,075 has been recorded.

We are further told that assuming similar equipment would cost $164,400 to replace and the partners agree on a valuation of $47,900 for the contributed equipment, we are told to calculate the amount that would be debited to the equipment account.

It should be noted that in a partnership, when the partners contribute an asset, during the recording of the asset in the partnership book, it is recorded based on the agreed valuation price.

In this case, the partners agree on a valuation of $47,900 for the contributed equipment. Therefore, the amount that should be debited to the equipment account will be $47,900.

7 0
4 years ago
Dragon Autos Inc., an automobile company based in the country of Bear Island, made a capital investment of $300,000 to set up pr
Irina18 [472]

Answer:

Foreign direct investment

Explanation:

Foreign direct investment (FDI) refers to a situation where a firm from country A invests in business in country B. Generally speaking FDI takes place when a firm acquires at least 10% of a business in another country.

In this case Dragon Autos is a company that is based in Bear Island (country A) that is investing $300,000 in the country of Westerland (country B).

FDI amounts to $253.6 billion in the US economy.

5 0
3 years ago
Emma Pebble and Chase Stone formed a partnership in a landscape business. Under their arrangement, Emma actively manages the com
Elena L [17]

Answer:True

Explanation:A limited partnership is a form of partnership business between two or more patners in which the major partner which is the general patner has controllable interests in the running of the business and making the managerial decision while the other partner(s),which is the limited partner has only a limited liability equating to the amount invested by him/her.But in the case of the general partner,he/she has unlimited liability of the business debt.Also,the limited partner(s) core&only objective is just about making profit/returns of his/her own initial investment.

So in the case of Emma Pebble and Chase Stone,Emma is the general partner who actively takes part in the running of the business,thus bearing the major risks&liablities,while Chase is the limited partner whose only interest is to partake in profits from his initial investment.

8 0
3 years ago
In addition to well-designed executive compensation packages, two other motivational forces can align the interests of managers
Harman [31]

Answer:  Let the manager know that a takeover is possible if he or she doesn’t perform well.

Explanation:

Agency problems refer to when managers take actions that benefit them instead of the shareholders of the company.

There are quite some ways to reduce the incidence of this happening and one of those is to let the manager know that a takeover is possible if they do not perform well.

Managers do not particularly like takeovers because the new owners of the company tend to get rid of the company's management who will be viewed as the reason for the company's failure or lack of growth. This will also impart on their reputations as good managers.

8 0
3 years ago
Other questions:
  • (8 points) Portland and Aleland are two identical countries. Beer manufacturers in each country compete under monopolistic compe
    10·1 answer
  • Biochemical Corp. requires $720,000 in financing over the next three years. The firm can borrow the funds for three years at 10.
    8·1 answer
  • Your grandfather wants to establish a scholarship in his father’s name at a local university and has stipulated that you will ad
    12·1 answer
  • What is the stage that follows recession and depression
    5·1 answer
  • Determine the amount of money accumulated in 5 years with an initial deposit of $10,000, if the account earned 12% compounded mo
    13·1 answer
  • In a few sentences, explain how a credit score affects creditworthiness and the cost of credit.
    9·1 answer
  • When creating a budget, you should use...
    7·1 answer
  • 20
    10·1 answer
  • Different compounding periods, are used for different types of investments. In order to properly compare investments or loans wi
    7·1 answer
  • Bramble Corp. uses flexible budgets. At normal capacity of 19000 units, budgeted manufacturing overhead is: $57000 variable and
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!