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Shkiper50 [21]
3 years ago
6

On January 1, 20X4, Parke Company borrowed $360,000 from a major customer evidenced by a non-interest bearing note due in three

years and Parke did not elect the fair value option. Parke agreed to supply the customer's inventory needs for the loan period at lower than market price. At the 12% imputed interest rate for this type of loan, the present value of the note is $255,000 at January 1, 20X4. What amount of interest expense should be included in Parke's 20X4 income statement
Business
1 answer:
Sonbull [250]3 years ago
5 0

Answer:

Parke Company

The amount of interest expense should be included in Parke's 20X4 income statement is:

= $30,600.

Explanation:

a) Data and Calculations:

3-year Non-interest bearing note payable = $360,000

Imputed interest rate for this type of loan = 12%

Present value of the loan = $255,000

Interest expense as of December 31, 20X4 = $30,600 ($255,000 * 12%)

b) The interest expense is based on the present value of the loan and not on the future value of the note payable.  Therefore, the interest expense for each of the three years will not be the same amount but will continue to increase as the present value changes from one year to the next.

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saul85 [17]

Answer: The answer is Laissez - faire leadership style

Explanation:

Leadership : This can be defined as the ability which makes a manager to exert a positive influence over the behaviour of their subordinates. It is a process by which managers direct the affairs of the organizations with a view to achieve the overall objective of the organization. Leadership is the aspect of management that has to do with the human beings.. every manager will have a different approach to leadership depending upon the managers personality, traits, early training, abilities, and experience. The following are the leadership styles

Autocratic leadership style : This is a kind of leadership style in which power is in the hands of one authority whose word is a law.it is a leadership style in which orders are issued and are expected to be obeyed without question. All decisions in this kind of leadership are those of the leaders little or no discussion does not take place with the subordinates.

Democratic leadership style:This is a kind of leadership style in which the leaders or managers share their decision making activities with their subordinates as much as possible while they do not give up their ultimate responsibility or authority. In this leadership style much decision making is done through discussion either formally or informally.

Laissez -faire : This is a kind of leadership style which focuse on the delegation of duties to subordinates without providing little or no supervision to monitor the performances such subordinates on the job. This kind of leadership style is used when subordinates are experienced, well trained, such that they required little or no supervision in doing their job.

Bureaucratic leadership style : This is a kind of leadership style which focuse mostly on rules and procedures as it is written in which subordinates are therefore expected to follow such rules and procedures spelt out for them by the managers to the latter in the performance of duties in the organization

8 0
3 years ago
What is the main goal of career and technical student organizations (CTSOs)? How do they help students achieve their goals?
blsea [12.9K]

Answer:

This is a two part question and therefore has been answered in two separate headings below.

Explanation:

<u>Main Goal of CTSOs</u>

Career and technical student organizations (CTSOs) goal is to strengthen student learning by using methods such as real-life applications, text book instructions, personal and leadership development skills.  

This means that their work forms as an essential part of the classroom syllabus and guide, which in return helps to build student's career skills and  views through taking part in these sessions and applying them in real life scenarios and/or work experience through Career program.

<u>Help Students to Achieve their Goals</u>

Career and technical student organizations (CTSOs) helps students achieve their goals by providing them a career path, study program and opportunities in order to gain the knowledge, skills and abilities that are needed to be successful in their career by way of CTSOs programs, events and activities.

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4 0
3 years ago
Williford Enterprises has purchased common stock from several companies and has classified them as long-term investments. If the
Tomtit [17]

The way they will record the dividends if they use the fair value method vs. the equity method is A. They will report dividends as income under the fair value method but as a reduction in the investment under the equity method.

<h3>What is a Stock?</h3>

This refers to the shares of a company that denotes a certain ownership percentage for each buyer of the stock.

Hence, we can see that Williford Enterprises has purchased common stock from several companies and has classified them as long-term investments and option A best shows how they would record the dividends.

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Answer:

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7 0
2 years ago
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Answer:

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Explanation:

Year Annual payment Discount factor  Present value  

1 $28,000          0.965250965 $27,027.03  

2 $32,000          0.931709426         $29,814.70  

3 $66,000          0.899333423         $59,356.01  

4 $99,000          0.868082454 $85,940.16

Total present value                                         $202,137.90  

The discount factor should be computed by  

= 1 ÷ (1 + interest rate)^years  

where,  

rate is 3.6%  

Year = 0,1,2,3,4 and so on  

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