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
lianna [129]
3 years ago
15

On September 30, 2018, Corso Steel acquired a patent from Thermo Steel. The agreement specified that Corso will pay Thermo $1,00

0,000 immediately and then another $1,000,000 on September 30, 2020. An interest rate of 8% reflects the time value of money for this type of loan agreement.
What amount of interest expense, if any, would Corso record on December 31, 2019, the company’s fiscal year end?
a. $68,687.
b. $80,000.
c. $60,000.
d. $69,959.
Business
1 answer:
Reika [66]3 years ago
3 0

Answer: $69,959

Explanation:

The amount of interest expense, that Corso will record on December 31, 2019, the company’s fiscal year end will be calculated thus:

First, we calculate the present value of payment which will be made on September 30,2020 and this will be:

= $1000000 × 0.857339

= $857339

Then, the interest expense on December 31,2018 will be:

= $857339 × 8%/12 × 3

= $17147

Therefore, the Interest expense on December 31,2019 will be:

= ($857339 + $17147) × 8%

= $874486 × 0.08

= $69959

You might be interested in
An investment project requires an initial investment of $100,000. The project is expected to generate net cash inflows of $28,00
Mamont248 [21]

Answer:

the payback period of the project is 3.57 years

Explanation:

The computation of the payback period is shown below;

Payback period:

= Initial investment ÷Cash inflows

= $100,000 ÷ $28,000

= 3.57 years

We simply divided the initial investment by the cash inflows so that the project payback period could come

Hence, the payback period of the project is 3.57 years

6 0
3 years ago
Which best describes the relationship between total utility and marginal utility?.
Whitepunk [10]

Answer:

While total utility measures the aggregate satisfaction an individual receives from the consumption of a specific quantity of a good or service, marginal utility is the satisfaction an individual receives from consuming one additional unit of a good or service.

8 0
2 years ago
Your boss has purchased a new laptop for business use and has asked you to make sure the data he plans to store on the laptop is
wlad13 [49]

Answer:

A. Use BitLocker Encryption with the TPM chip

B. Secure Boot option

Explanation:

Trusted Platform Module or TPM chip is a tool used to produce reliable and unusual cryptographic codes and save them in an encrypted form to be utilized to validate hardware accessories. The cryptographic systems are encrypted and can be decrypted only by the TPM chip, which designed and encrypted them. <em>BitLocker</em> software uses a TPM chip to control the encryption of the computer data. Since the key saved in the TPM is distinctive, the BitLocker software can quickly verify the encrypted TPM and do not pass the decryption to another computer.

The method of Secure Boot is where the Operating System boot pictures and code are verified against the hardware before they are authorized to be used in the actual boot process.

If my boss uses both the encryption and secure boot, the data will become secure.

4 0
3 years ago
Walker Clothing Store has a balance in the Accounts Receivable account of $390k at the beginning of the year and a balance of $4
lesantik [10]

Answer:  The average collection period of the receivables in terms of days was 73 days.

Explanation:

Given that,

Accounts Receivable at the beginning of the year = $390,000

Accounts Receivable at the end of the year = $410,000

Net credit sales during the year = $2,000,000

Average collection period of the receivables in terms of days:

Average accounts receivables = \frac{410000 + 390000}{2}

= 4,00,000

Net credit sales = \frac{2000000}{400000} = 5

∴ Accounts receivable days = \frac{365}{5}

= 73 days

The average collection period of the receivables in terms of days was 73 days.

4 0
3 years ago
Thomlin Company forecasts that total overhead for the current year will be $11,597,000 with 164,000 total machine hours. Year to
Pepsi [2]

Answer: c.$71 per machine hour

Explanation:

The Pre-determined Overhead rate is the rate Thomlin Company forecasted that the company would incur total overhead for the current year.

They forecasted total overhead of $11,597,000 with 164,000 total machine hours.

Since the rate is based on Machine Hours the rate would be,

= Total Forecasted Overhead / Total Forecasted Machine Hours

= 11,597,000 / 164,000

= 70.71

= $71

4 0
3 years ago
Other questions:
  • Which of the following people are structurally unemployed? Select all answer options that apply. Choose one or more: A. A worker
    15·1 answer
  • Which of the following acronyms refers to the safety procedure that workers should use when performing maintenance or repair on
    14·1 answer
  • A company’s dividend policy refers to the manner in which a firm distributes its earnings to shareholders. Georia Industries Inc
    9·1 answer
  • Which of the following is a true statement about closing the books of a corporation?A)Expenses are closed to the Expense Summary
    7·2 answers
  • Does inflation benefit the lender or borrower?
    14·1 answer
  • Assume bonds payable are amortized using the straight-line amortization method unless stated otherwise.
    6·1 answer
  • Which of the following is a question you should ask your boss regarding individual performance evaluations?
    8·1 answer
  • Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $110,000 and fair market value of $165,000). Simon i
    9·1 answer
  • Corrigan was the sole proprietor of Tastee Burgers, a restaurant. In 2018, Bergdahl allegedly suffered from food poisoning after
    8·1 answer
  • The inventory costing method that identifies each item in ending inventory with a specific purchase and invoice is the:______.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!