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AVprozaik [17]
3 years ago
8

Pharoah Company borrowed $1470000 from U.S. Bank on January 1, 2019 in order to expand its mining capabilities. The 5-year note

required annual payments of $382842 and carried an annual interest rate of 9.5%. What is the amount of expense Pharaoh must recognize on its 2020 income statement
Business
1 answer:
nikklg [1K]3 years ago
6 0

Answer:

$116,546.76  

Explanation:

Loan amount=$1470000

interest expense in 2019=$1470000*9.5%=$139,650  

annual repayment=$382,842

Balance of the loan as the end of 2019=loan amount-annual repayment+interest expense

Balance of the loan as the end of 2019=$1470000-$382,842+$139,650  

balance of the loan as of the end of 2019=$1,226,808  

2020 interest expense=balance as the end of 2019*interest rate

2020 interest expense=$1,226,808 *9.5%

2020 interest expense=$116,546.76  

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4 years ago
If a chart indicates that both the Dow Jones Industrial Average and the advance/decline line have been increasing since January,
pantera1 [17]

Answer:

B. Continue to rise

Explanation:

Since if the chart represents the DJIA and the line of advance or decline rises since the month of January and still it continues to be rise so the market should considered that the more and more stocks are increasing in terms of price rather than dropping

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3 years ago
Net capital spending: Multiple Choice is equal to ending net fixed assets minus beginning net fixed assets. is equal to zero if
seropon [69]

Answer:

Is equal to zero if the decrease in the net fixed assets is equal to the depreciation expense

Explanation:

Net capital spending in domain of finance can be regarded as net amount that is been spent by a firm for the purpose of acquiring fixed assets at a particular period of time, this gives indication regards the growth of that fixed assets of that particular company. During the expansion phase there is usually high amount of net capital spending. It should be noted that Net capital spending Is equal to zero if the decrease in the net fixed assets is equal to the depreciation expense

3 0
3 years ago
Prescott Bank offers you a five-year loan for $53,000 at an annual interest rate of 7.75 percent. What will your annual loan pay
Whitepunk [10]

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$13,186.84

Explanation:

Use the Time Value of Money Techniques to Solve the Problem

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8 0
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Money encourages specialization by decreasing the .
Vaselesa [24]

Money encourages specialization by decreasing the exchange cost.

The correct option is B.

<h3>What is the exchange cost?</h3>

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Learn more about exchange cost

brainly.com/question/16854858

8 0
2 years ago
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