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Stels [109]
3 years ago
8

On January 1, 2020, HD Corp. paid $60,000 and issued a 5-year noninterest bearing note payable with a face value of $120,000 in

exchange for a piece of equipment. The applicable interest rate is 8%. HD Corp depreciates over a straight-line basis and utilizes the effective interest method to record interest expense. The equipment is expected to be in service for 8-years at which point it will be worthless.
Required:
What is the carrying value of the note payable on 12/31/2021?

a. $120,000
b. $88,204
c. $75.136
d. $95.260
e. $89,335
Business
1 answer:
AVprozaik [17]3 years ago
6 0

Answer:

b. $88,204

Explanation:

The computation of the carrying value of the note payable is shown below:

= Present value of the notes + interest

= $120,000 × 0.680583 + ($120,000 × 0.680583 × 8%)

= $81,670 + $6,534

= $88,204

hence, the second option is correct

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Which of the following statement is not true about derivative contracts?
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Answer:

a. A long position is a bet that the number is going to fall while a short position is a bet that the number will rise in the future.

Explanation:

The derivative contract is a contract in which the contract is to be done between two or more parties regarding the value i.e. depend upon the financial asset i.e. underlying. It involves the bonds, commodities, etc

So according to the given options, the option a is correct as long position is a bet in which the number is to be decline while on the other hand in the short position the number would increase

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3 years ago
“don’t waste any time in mourning—organize.”
Vsevolod [243]
truth, the expression is part of a telegram sent to Bill Haywood, in which Joe wrote, "Goodbye, Bill, I die like a true blue rebel. Don't waste any time mourning. Organize!" It wasn't Joe's last telegram; he sent another in which he implored Haywood, "Could you arrange to have my body hauled to the state line to be buried? I don't want to be found dead in Utah.
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4 years ago
Select all that apply. Select the items that describe what most likely happens when the Federal Reserve increases the money supp
11111nata11111 [884]

Answer:

Businesses borrow more money.

Consumption increases.

Explanation:

The Federal Reserve is the body responsible for conducting monetary policy in the US. Monetary policy basically consists of two actions. The increase / decrease in the money supply in the economy and the increase / decrease in the interest rate. These actions may happen together, but they are technically independent.

When the Federal Reserve increases the supply of money in circulation, more money is circulated through loans and personal spending. This is considered a policy of stimulating the economy and can be done independently of interest rate changes, although the reduction of interest is also a stimulus monetary policy that can be done in conjunction with the increase in the money supply.

5 0
3 years ago
Lossing Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overh
timofeeve [1]

Answer:

$1,188 unfavorable

Explanation:

Volume variance = Budgeted fixed overhead cost - Fixed overhead applied to work in process.

$89,640 ÷ 8,300 machine hours

= $10.8 per machine hours

= $89,640 - ( 8,190 machine hours * $10.8 per machine hours )

= $89,640 - $88,452

= $1,188 unfavorable

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3 years ago
Sharon joined a team that was responsible for boosting sales on last year's electronic models. The team began in January and was
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Answer:

A. Punctuated equilibrium

Reason:

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3 years ago
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