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ycow [4]
2 years ago
9

Ames, Inc., has $1 million of notes payable due June 15, Year 2. At the financial statement date of December 31, Year 1, Ames si

gned an agreement to borrow up to $1 million to refinance the notes payable on a long-term basis. The financing agreement called for borrowings not to exceed 80% of the value of the collateral Ames was providing. At the date of issue of the December 31, Year 1, financial statements, the value of the collateral was $1.2 million and was not expected to fall below this amount during Year 2. In its December 31, Year 1, balance sheet, Ames should classify the notes payable asShort-Term Obligations, Long-Term ObligationsA. $0, $1,000,000B. $40,000, $960,000C. $200,000, $800,000D. $1,000,000, $0
Business
1 answer:
Delvig [45]2 years ago
7 0

Answer: B. $40,000, $960,000

Explanation:

The long term obligation will be 80% of the collateral value which will be:

= 80% × $1.2 million

= 0.8 × $1,200,000

= $960,000.

Therefore, the short term obligation will be:

= $1,000,000 - $960,000

= $40,000

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Answer and explanation:

Democracy is the state in which individuals of a community make decisions collectively being the interest of most people prioritized. A pure form of democracy is difficult to find even in countries that highly promote equal rights such as the United States.

The Democracy Index is a composite that measures democracies in 167 countries scoring them from 1 to 10 (10 is the highest grade). In 2019, The U.S. was positioned in the 25th place in the list of most democratic countries. <em>Norway </em>is placed in the first place followed by <em>Iceland</em>.

In such a case, <em>we should recommend our friend to take a look at the Democracy Index where he or she will find out that the U.S. is not one of the fairest nations in the world. Its government functioning and political participation are aspects where the U.S. needs improvement.</em>

6 0
3 years ago
In January of 2018, the Phillips Company purchased a patent at a cost of $100,000. In addition, $10,000 in legal fees were paid
soldi70 [24.7K]

Answer:

The answer is: $113,000

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