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qwelly [4]
3 years ago
5

The Pastel Paint Company recently loaned $300,000 to KIX 96, a local radio station. The radio station signed a noninterest-beari

ng note requiring the $300,000 to be repaid in three years. As part of the agreement, the radio station will provide Pastel with a specified amount of free radio advertising over the three-year term of the note. The focus of this case is the valuation of the note receivable by Pastel Paint Company and the treatment of the "free" advertising provided by the radio station. Your instructor will divide the class into two to six groups depending on the size of the class. The mission of your group is to reach consensus on the appropriate note valuation and accounting treatment of the free advertising.
Required:
1. Each group member should deliberate the situation independently and draft a tentative argument prior to the class session for which the case is assigned.
2. In class, each group will meet for 10 to 15 minutes in different areas of the classroom. During that meeting, group members will take turns sharing their suggestions for the purpose of arriving at a single group treatment.
3. After the allotted time, a spokesperson for each group (selected during the group meetings) will share the group’s solution with the class. The goal of the class is to incorporate the views of each group into a consensus approach to the situation.
Business
1 answer:
VladimirAG [237]3 years ago
7 0

Answer:

Following are the queries to these question:

Explanation:

Reporting entering for recording the note received

Permissible notes (face amount)........................................................  \$300,000

Cash................................................................................................... \$300,000

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2. An entrepreneur must make sure to budget carefully since they oversee their own company's finances.
Fynjy0 [20]

Answer:

True .....this is because the entrepreneur is the risk bearer of the business...he is liable for any profit/loss.

8 0
2 years ago
The following information is for a collateralized mortgage obligation (CMO). Tranche A of $50 million receives quarterly payment
Verdich [7]
<h3>Answer:</h3><h3>Tranche A interest $50m*9%*3/12                          $1,125,000                                                </h3><h3>Tranche B interest $100m*10%*3/12                       $2,500,000                                                        </h3><h3>Tranche C interest $50m*11%*3/12                           $1,375,000</h3><h3>Principal balances:</h3><h3>Tranche  A        $47 million</h3><h3>Tranche B          $100 million</h3><h3>Tranche C           $50 million</h3><h3 /><h3 /><h3>Explanation:</h3><h3>The approach in debts securitization is that the most senior tranche,tranche A in  this question receives any payment  received in excess of periodic payment of interest.</h3><h3>On that basis,the quarterly payments can be shared between the three tranches as follows:</h3><h3>Total quarterly   payment    received                       $8000,000</h3><h3>Tranche A interest $50m*9%*3/12                            ($1,125,000)                                                </h3><h3>Tranche B interest $100m*10%*3/12                       ($2,500,000)                                                        </h3><h3>Tranche C interest $50m*11%*3/12                           ($1,375,000)                                        </h3><h3>Balance left                                                                  $3,000,000</h3><h3>As earlier reiterated, the balance of $3 million would be used to redeem part of tranche A,hence in tranche A is $47 million($50m-$3m):</h3><h3>Principal balances:</h3><h3>Tranche  A        $47 million</h3><h3>Tranche B          $100 million</h3><h3>Tranche C           $50 million</h3>

8 0
3 years ago
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klasskru [66]

Answer:

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Raw material is the basic material from which a product is made or it can be defined as materials or substance in the primary production or manufacturing of goods

6 0
3 years ago
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padilas [110]

Answer:

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3 0
3 years ago
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cricket20 [7]

Answer:

The correct option is C,due diligence

Explanation:

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Pedro has just carried a due diligence by committing an industry expert to examine closely the prospective business.

5 0
3 years ago
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