Answer:
The note payable will be presented in the financial statement at the face amount minus a discount calculated at the imputed interest rate.
Explanation:
The imputed rate is the rate at which the present value of the face amount of the note will be equal to the amount at which it is originally recorded.
Notes issued or received in exchange for goods or services that do not bear interest at a fair rate are reported at an amount equal to the fair value of the note, the fair value of the goods or services, or the present value of the note using a fair interest rate, whichever is more readily determinable.
The difference between the recorded amount and the face value is considered a discount and the applicable interest rate regardless of which method is used to value the note.
Because of this, the note is reported at its face amount minus a discount calculated at the imputed interest rate.
Answer:
60%
Explanation:
To calculate the percentage assigned to cost of goods sold
, we should use the formula:
= 60%
Therefore, the percentage assigned to Cost of goods sold is 60%
Hi there
What we need first is the book value of the equipment
The book value is
originally costing - accumulated depreciation
100,000−65,000=35,000
Since the sale price is 40000 and the book value is 35000 This result a gain of 5000 (40000-35000)
Good luck!
