Answer:
B. debit Notes Receivable for the face value of the note.
Explanation:
Whenever a note is receivable, it is an asset as the amount will be collected in the future, that is with exchange of such asset there is a benefit defined in terms of cash to be received by the the company.
Therefore, it will be a debit and not the credit.
Whenever a notes receivables with interest bearing element is received then the asset is carried at face value, that is recorded at face value.
As the interest to be received is part of income and not asset, therefore, notes receivables will be recorded at face value.
The correct option is:
B. debit Notes Receivable for the face value of the note.
Answer:
Operating income 75,000
EBT 57,000
Net income ncome 34,200
Explanation:
Sales revenue 300,000
Cost of goods sold (160,000)
G&A expenses (40,000)
Selling expenses <u> (25,000) </u>
Operating income 75,000
loss on sale (22,000)
interest revenue 4,000
EBT 57,000
income tax expense
57,000 x 40% = (22,800)
Net income ncome 34,200
Answer: Franchise agreement
Explanation: Before a third party can be licensed to use a proprietary software, document, brand name or other licensed materials, goods, product or trademark, there must be an agreement between the franchisor (Theodore and James) and the franchisee ( organizations or individuals who wish to use the franchisor's product) called the franchise agreement. These provides a legal bond between both parties which outlines terms and conditions of use pertaining to the franchisor's brand name or proprietary product. The franchisee offers something in return for the grant which is usually a Monetary package.
Answer:
13%
Explanation:
Given that,
Investment (100% equity) = $700,000
EBIT = $140,000
Tax rate = 35%
Earnings after tax:
= Investment (100% equity) + Earnings before interest and taxes - Tax (35%)
= $700,000 + $140,000 - ($140,000 × 0.35)
= $840,000 - $49,000
= $91,000
ROE = Earnings after tax ÷ Investment
= $91,000 ÷ $700,000
= 13%
Expected Payoff = Probability of Heads * Payoff to you + Probability of Tails * Payoff
Expected Payoff to you = 50% * $2 + 50% * -$1 = $1 + (-$0.5) = $0.50.
$0.50 is the expected payoff (return) of this bet.
Expected value is a measure of what you can expect in the long run for each game. The game payment is the expected value of the game minus the cost. If you play the game repeatedly and get an average of about $ 2.20, and it costs only $ 2 to play, the expected payment is $ 0.20 per game.
To calculate the expected payoff, you need to multiply each result by an estimate of its probability and then sum the products. In this example, there is a 10% chance of a 5% drop with a -0.5% result.
Learn more about the expected payoff here: brainly.com/question/14209505
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