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mina [271]
3 years ago
5

Proverbial Corp. signed a 6-year note relating to the purchase of a new delivery fleet; annual payments are due at the end of th

e year. Proverbial's effective interest rate is 8%. At the time of purchase, the company recorded the fleet at $200,000. At the end of the first year, the net book value has decreased to $160,000, while the carrying value of the note is $164,000. Interest expense relating to the second year should be
Business
1 answer:
Vladimir [108]3 years ago
7 0

Answer:

$13,120

Explanation:

The interest expense attributable to the second year is the carrying value of the note at the beginning of second year(at the end of the first year) multiplied by the effective annual rate in order to determine the cost of the loan to the company

interest expense in year 2=$164,000*8%

interest expense in year 2=$13,120

The interest expense would be shown as financial charge in the income statement for the second year

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just olya [345]

Answer:

a.

Explanation:

Based on all the answers that were provided the statement that is correct is that the bid price in a hostile takeover is generally above the price before the takeover attempt is announced, because otherwise there would be no incentive for the stockholders to sell to the hostile bidder and the takeover attempt would probably fail. Which pretty much explains itself, except for that a hostile takeover is when a person or another business tries to purchase a business by going directly to the shareholders themselves.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

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3 years ago
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2 years ago
​Drive-Ins borrowed money by issuing $ 2 comma 500 comma 000 of 8 % bonds payable at 96.5. Interest is paid semiannually. Requir
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The money could have been a tip.

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2 years ago
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lukranit [14]

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Fulfilling client's expectations

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The Project Management Institute (PMI) aims to develop the project management profession.

PMI definition proposed by Meredith and Mantel has included client satisfaction as a criteria for project success.

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2 years ago
Which of the following is used to explain the process managers go through in determining the reasons for effective or ineffectiv
inessss [21]

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8 0
2 years ago
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