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
Alex Ar [27]
3 years ago
15

Karin Company's loan is due on July 1, 2018. What conditions must Karin meet (at a minimum) so that the note can be classified a

s a long-term liability on the company's balance sheet at December 31, 2017
Business
1 answer:
Sindrei [870]3 years ago
8 0

Answer: D. A & C

Explanation:

A long term liability is one that is due to be paid in a period longer than a year. The loan is due in less than a year so the only way to classify it as a long term liability is to make it a loan that will extend past a year. This can be done through refinancing which is to replace the current loan with another loan.  

Karin's company therefore would need to demonstrate that the obligation can be refinanced on a long-term basis by them and they must also have the intention to do so as well.

You might be interested in
Marketers describe the way a consumer processes information to arrive at brand choices as ________.
myrzilka [38]

Alternative evaluation is what Marketers characteristic the way the consumer make information to arrive at brand choices as alternative evaluation.  After buying a product, the consumer will be satisfied or dissatisfied and will engage in post purchase behaviour. The relationship between the consumer's expectations and the product's perceived performance determines whether the buyer is satisfied or dissatisfied with a purchase.

5 0
4 years ago
On November 30, Year 1, Parlor, Inc. purchased for cash at $15 per share all 250,000 shares of the outstanding common stock of S
zepelin [54]

Answer:

$275,000

Explanation:

Goodwill in business combination arises when the price paid in acquiring a business exceeds the fair value of the acquired business net assets . The fair value is used rather than the carrying amount to ensure fairness and an unbiased result

<u>Workings</u>

Purchase consideration = 250,000*15 =3,750,000

Percentage acquired = 100%

Fair value of net asset = 3,000,000+400,000+75,000= 3,475,000

Goodwill = 3,750,000=3,475,000 =275,000

6 0
4 years ago
Vanessa bought a house for $268,500. She has a 30 year mortgage with a fixed rate of 6.25%. Vanessaâs monthly payments are $1,59
Musya8 [376]

Answer:

Ans. A) $9,314.45

Explanation:

Hi, first we have to bring to present value the monthly payments to be made for 30 years (360 months). In order for this to be useful, we have to convert this annua compounded monthly rate (6.25%) to an effective rate, that is 6.25% / 12 = 0.5208%. Now, when we find this present value, we are going to substract it from the price of the house and that is the value of the down payment. But let´s just go ahead and do it together.

We have to use this formula to bring to present value the $1,595.85 monthly payments, for 30 years (360 months) at a rate of 6.25% (0.5208% monthly).

PresentValue=\frac{A((1+r)^{n}-1) }{r(1+r)^{n} }

It should look like this

PresentValue=\frac{1,595.85((1+ 0.005208 )^{360}-1) }{0.005208(1+0.005208)^{360} }

Present Value=259,185.55

Now, let´s go ahead and find the down payment.

DownPayment=Price-PresentValue

DownPayment=268,500-259,185.55= 9,314.45

So, the answer is a). $9,314.45

Best of luck.

5 0
3 years ago
when banker expects a rise in interest rates in the fututre then the best strategy for the present is
oksano4ka [1.4K]

Answer:

Increase duration of the bank assets

Explanation:

Because When the duration of assets is longer than the duration of liabilities, this allows for a the duration gap is positive. And so even if interest rates rise, assets will lose more value than liabilities, hence reducing the value of the firm's equity.

7 0
3 years ago
In its first month of operations, Marigold Corp. made three purchases of merchandise in the following sequence: (1) 240 units at
trapecia [35]

Answer:

A= $1120

Explanation:

6 0
3 years ago
Other questions:
  • While working at a clothing store, rachel was asked by a customer if they had any "fresh" clothes. rachel remarked that this sto
    11·1 answer
  • A company issues $24900000, 5.8%, 20-year bonds to yield 6% on January 1, 2020. Interest is paid on June 30 and December 31. The
    10·1 answer
  • Which statement is correct? In the short run, the pure monopolist will maximize total profits by producing at that level of outp
    8·1 answer
  • Imagine that you earned $8,425 in one year. If the government enforces a 15% income tax, how much money would you owe in taxes a
    8·2 answers
  • What are some questions you may ask when reevaluating a goal? (Choose all that apply.)
    6·1 answer
  • Game theory is:A. a strategy that requires cooperation when multiple parties are involved.B. a methodology to accomplish winning
    14·1 answer
  • During 2018, P Company discovered that the ending inventories reported on its financial statements were incorrect by the followi
    13·1 answer
  • Renzo wants to buy a cell phone that is within his budget. The sales person cannot lower the price of a chosen cell phone any fu
    10·1 answer
  • High-Low Method The manufacturing costs of Rosenthal Industries for the first three months of the year follow:
    15·1 answer
  • you have been hired to conduct a job analysis at a local fast food chain. after completing your analysis, you conclude that the
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!