What must the broker do after the termination of an agency relationship?

At the beginning of 2021, VHF Industries acquired a machine with a fair value of $4,803,660 by issuing a three-year, noninterest

Serga [27]

Answer:

a. What is the effective rate of interest implicit in the agreement?

I used an Excel spreadsheet and the RATE function:

PV = 4,803,660

FV = 6,000,000 (optional)

Nper = 3

Payment = -2,000,000

Rate = 12%

b. Prepare the necessary journal entry.

Dr Machinery 4,803,660

Dr Discount on notes payable 1,196,340

Cr Notes payable 6,000,000

c. Suppose the market value of the equipment was unknown at the time of purchase, but the market rate of interest for notes of similar risk was 11%. Prepare the journal entry to record the purchase of the equipment.

we would need to determine the present value, again using an Excel spreadsheet and the PV function:

PV = $4,887,429.43 ≈ $4,887,429

Dr Machinery 4,887,429

Dr Discount on notes payable 1,112,571

Cr Notes payable 6,000,000

8 0

3 years ago

1. A company acquires all of the assets and liabilities of another company. Which statement is false? A. The acquired company no

Scilla [17]

Answer:

The answer is D.

Explanation:

When a company is acquiring a company, it is buying all the assets and liabilities of the acquired company.

The acquiring company will report the intangible asset(Goodwill). It is a purchased goodwill. Goodwill is the difference between purchase price and the net asset of the acquiring company.

Acquiring company will no longer exist because the acquired is buying all of the acquiring company's share.

All the assets and liabilities will be valued and reported at fair value to show the current market price.

It is not necessary for acquiring company to revalue all its assets and liabilities.

8 0

3 years ago

( 13 points) Providing adjustable height desks to employees who need a wheelchair is an example of

Hunter-Best [27]

providing adjustable height desks to employees who need a wheelchair is

A) A tangible incentive

7 0

3 years ago

Read 2 more answers

If your nominal wage rises from $10 to $12 while the CPI rises from 150 to 180 will your real wage increase, decrease, or stay t

dimaraw [331]

Answer:

A. Stay the same

Explanation:

We need to compare the rate of price change and the rate of inflation.

Rate of price change = <u> $12 - $10</u> x 100

$10

=2/10 x 100

=0.2 x 100

=20%

inflation rate= <u>CPI year 2- CPI year</u> 1 x 100 %

CPI year 1

=180 -150 x 100

150

=30/150 x 100

=0.2 x 100

=20%

The price change are the inflation rate are the same.The real wages will stay the same

4 0

3 years ago

Read 2 more answers

g efg manufacturing has a product that sells for $15 per unit, and the marginal cost is $5.00. a. compute the lerner index for e

Hitman42 [59]

Answer:

(a) 0.667 (b) The Lerner index helps in estimating of the market power of a firm. it measures the percentage markup that a firm is able to charge.

The conditions where this market power last in the long-run are; the pricing power, Factor mobility, Barrier to entry or exist.

Explanation:

Solution

Given that:

(A) The Lerner index is computed below:

Lerner index = (P-MC)/P

Thus,

($15-$5.00)/$15

=10/15

= 0.667

(B) The Lerner index assist in measuring of the market power of a firm. it measures the percentage markup that a firm is able to charge.

Index spans from a low value (0) to a higher value of (1)

When a firm has a higher value of index, it is able to charge over it;s marginal cost and thus has a greater monopoly power

Other conditions where market power last in the long run is as follows:

The pricing power
Factor mobility
Barrier to entry or exist

6 0

4 years ago