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
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

You might be interested in
During a reporting period, a computer manufacturing company used raw materials of $50,000, had direct labor costs of $75,000, an
sammy [17]
<span>To calculate the cost of goods sold we use the following formula:
 beginning inventory + the cost of goods purchased or manufactured = cost of goods available ending inventory.
 Since there was no beginning balance in inventory account and all goods were sold we can assume that cost of goods = total costs for the period. Adding up all costs for the period comes to $173,000.</span>
3 0
3 years ago
In the advertising industry, terms such as new advertising, orchestration, and seamless communication were used to describe the
kolezko [41]

Answer:

The correct answer is letter "B": integration.

Explanation:

Advertising integration refers to bundling all mediums of communication possible business can use to promote its goods or services. This strategy reinforces the firm market position by repeating its advertising message constantly creating consistency and reducing the stress of having to create a different marketing approach for each advertising channel.

4 0
3 years ago
Tax laws permit installment sales, which are recognized in the year of sale for financial reporting purposes, to be reported in
Lera25 [3.4K]

Answer:

lower; higher.

Explanation:

Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.

The different types of tax include the following;

1. Income tax: a tax on the money made by workers in the state. This type of tax is paid by employees with respect to the amount of money they receive as their wages or salary.

2. Property tax: a tax based on the value of a person's home or business. It is mainly taxed on physical assets or properties such as land, building, cars, business, etc.

3. Sales tax: a tax that is a percent of the price of goods sold in retail stores. It is being paid by the consumers (buyers) of finished goods and services and then, transfered to the appropriate authorities by the seller.

Generally, installment sales are permitted or allowed by the tax laws in a country. Typically, they are recognized in the year of sale for the purpose of financial reporting. Also, installment sales for any goods or services are to be reported in the tax return, at a later time when cash is received from the customer (buyer).

This results in a deferred tax liability because taxable income is lower than financial income in the year of sale, and higher than financial income in later years when collected.

7 0
2 years ago
The ____ is the amount earned on an investment for a given period of time.
hichkok12 [17]

Answer:

Investment income.

Explanation:

Investment income is income that comes from interest payments, dividends, capital gains collected upon the sale of a security or other assets, and any other profit made through an investment vehicle. Generally, individuals earn most of their total net income each year through regular employment income.

hope this helped broski =))

3 0
3 years ago
Assume that in a private, closed economy consumption is $240 billion and investment is $50 billion, both at the $280 billion lev
adell [148]

Answer:

D. unplanned increases in inventories of $10 billion will occur

Explanation:

5 0
3 years ago
Other questions:
  • By how much did annualized consumption decline in november of 2008 when gdp was $14 trillion?
    12·1 answer
  • Do you think that some has rights to intellectual property in today’s world?
    15·1 answer
  • At the beginning of the year, manufacturing overhead for the year was estimated to be $477,590. At the end of the year, actual d
    7·1 answer
  • When a standalone organization is created and owned by two or more parent companies together, the strategic alliance is referred
    9·1 answer
  • Gator Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $489,000, va
    9·1 answer
  • You purchased a roundtrip ticket to a friend's wedding in Cleveland on Saturday for $400, but on Sunday you discover your return
    5·1 answer
  • Which is not a factor that can cause a change in supply?
    7·2 answers
  • Bruce Company reported net income for 20X1 of $100,000. The company reported depreciation expense of $17,500 and amortization of
    5·1 answer
  • Economic justice was not a mainstream concept before the Great Depression. The predominant economic theory advocated a laissez-f
    10·1 answer
  • What are the three phases in purchasing process
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!