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Andre45 [30]
2 years ago
15

Straight Industries purchased a large piece of equipment from Curvy Company on January 1, 2019. Straight Industries signed a not

e, agreeing to pay Curvy Company $480,000 for the equipment on December 31, 2021. The market rate of interest for similar notes was 9%. The present value of $480,000 discounted at 9% for five years was $311,967. On January 1, 2019, Straight Industries recorded the purchase with a debit to equipment for $311,967 and a credit to notes payable for $311,967. How much is the 2020 interest expense, assuming that the December 31, 2019 adjusting entry was made
Business
1 answer:
Damm [24]2 years ago
3 0

Answer:

$30,604

Explanation:

The computation of the interest expense for the year 2020 is as follows:

2019 interest expense is

= Equipment amount × rate of interest

= $311,967 × 9%

= $28,077

The Dec 31 2019 liability of book value is

= $311,967 + $28,077

= $340,044

Now the interest expense for the year 2020 is

= $340,044 × 0.09

= $30,604

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Explanation:

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While Secondary market, are places to sell securities to a secondary (second) buyer from the current security owner who bought from the primary market.

The primary market is dependent on the secondary market since it is the demand from the secondary market that determines the asset valuation of the primary market.

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3 years ago
Webster's has sales of $649,000 and a profit margin of 7.2 percent. the annual depreciation expense is $102,600. what is the amo
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3 years ago
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Answer:

A) Coordiantion, is the correct option

Explanation:

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2 years ago
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Answer:

Can you add a picture?

Explanation:

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Answer:

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Explanation:

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