Answer:
61,198.47
Explanation:
First we solve for the present value of the note receivables at January 1st, 2021 As we are asked for the interest revenue on the 2021 incoem statment
Maturity $750,000.00
time 2.00
rate 0.10000
PV 619,834.7107
now, we calcualte the interest considering the 10% implicit interest
619,834.7107 x 0.10 = 61,198.47
This will be the interest revenu for the year 2021
SNOW WHITE AND THE SEVEN DWARFS BY ANNE SEXTON
Answer:
Testing process...?
Would have been better if given options...
Answer: $2,400
Explanation:
The best transfer price is the related cost to the division in question and this is usually the Variable cost of production.
Since there is excess capacity, we can assume that no benefits will be lost in transit.
To calculate therefore, we simply add up all the Variable costs of production.
= Direct labor + Direct Material + Variable Overhead.
= 1,300 + 700 + 400
= $2,400
$2,400 is the best transfer price to avoid transfer price problems.
