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dmitriy555 [2]
3 years ago
6

On January 1, MM Co. borrows $340,000 cash from a bank and in return signs an 8% installment note for five annual payments of $8

5,155 each. 1. Prepare the journal entry to record issuance of the note. 2. For the first $85,155 annual payment at December 31, what amount goes toward interest expense
Business
1 answer:
Fiesta28 [93]3 years ago
4 0

Answer:

Required 1

<u>January 1</u>

Cash $340,000 (debit)

Note Payable $340,000 (credit)

Required 2

$27,200  goes toward interest expense.

Explanation:

<u>Issuance of the Note :</u>

Assets of Cash are increasing, the Liabilities are also increasing.

<u>Payment at December 31 :</u>

The Annual Payment comprises of Capital Repayment and Interest Expense.

Prepare an amortization schedule using the details of the Note highlighted below to separate the Capital Repayment and  Interest Expense Component :

PV = $340,000

PMT = - $85,155

N = 5

i = 8%

P/yr = 1

FV = $0

Note Schedule is attached !

Download pdf
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Explanation:

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Given the question above, since the country changes its corporate tax laws so that domestic businesses build and manage more business in other countries, it means that the net capital outflow of that country falls and the net capital outflow of other countries rise.

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3 years ago
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Question Options:

A) economic order quantity

B) partial productivity

C) multifactor productivity

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4 years ago
Beige Corporation, a C corporation, purchases a warehouse on August 1, 2007, for $1 million. Straight-line depreciation is taken
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Answer and Explanation:

The computation of the amount and character of the gain recorded is shown below:

1. Recognized gain would be

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2. Now as per the section 1245 the potential recapture is $411,750

3. Now extra section 291 ordinary income in the case when it is a corporation

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III. A spiral model.

An options-based planning can be defined as a strategic management process which typically involves the maintenance of flexibility by investing simultaneously in a little amount (manner) in various alternative plans.

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