Answer:The answer is a
Explanation:
A contract is an agreement between two or more parties which contains the terms and conditions of the contract and which also serve as an evidence that the two parties in the contract has a duty to perform to each other. The terms and conditions of the contract can be enforced in the court of law in case of a breach of contract which may come from either parties in the contract agreement. While, a contract interference is a kind of breach of contract in which one vendor put a pressure on the organization in which they offer service to withdraw from the contract the organization earlier had with one of their competitors in the market. This contract interference can occur when a vendor either force or put a financial inducement on the organization with a view to make them consider their proposal to the organization to eventually agree to abandon the contract they had with their competitors in favour of getting the contract instead of their competitors who should get the contract.
Therefore, from what we can deduce from the question under review, it is clear that A plus linen has engage in contract interference by offering John C Lincoin hospital $5 for every 100 pound of linen they send to them by dropping their current linen service.
Answer:
Option C Credit to Unearned Management Fees for $62,000
Explanation:
The reason is that the unearned managment fees are liabilities and so are credit in nature just like other liabilities. It is also the requirement of accrual accounting system that says the revenue and expenses must only be recorded when they are realized. Which means the revenue share for example which is $1000 must be recorded as revenue when we will deliver our customers services of one month. It doesn't matter if the revenue amount is not received in cash. So delivering your share is compulsory here to recognize sales or services.
Answer:
They should use interest rate of 7.7%
Explanation:
The rate (let's call it r) should be that the annual interest of the $15,000,000 that they borrow through isssuing bond is $1,150,000
Then 15*10^6 * r = 1,150,000 => r = (1.15*10^6)/(15*10^6) = 0.077 or 7.7%
<u>Note:</u> $1,150,000 is the annual amount they could set aside for paying interest, so they should use 7.7%. If it's lower than what market requires they will have to sell the bond at a discount. If it's higher than is required they the bond would be bought at a higher price than par-value.
