1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
mr_godi [17]
3 years ago
11

On January 1, 2020, Ann Price loaned $216216 to Joe Kiger. A zero-interest-bearing note (face amount, $280000) was exchanged sol

ely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2022. The prevailing rate of interest for a loan of this type is 9%. The present value of $280000 at 9% for three years is $216216. What amount of interest income should Ms. Price recognize in 2020
Business
1 answer:
Anna007 [38]3 years ago
3 0

Answer:

$19,459.44

Explanation

Interest expense in 2020 = Loan amount * Prevailing rate of interest

Interest expense in 2020 = $216216 * 9%

Interest expense in 2020 = $19,459.44

So, $19,459.44 is the amount of interest income that Ms. Price should  recognize in 2020

You might be interested in
The cases of Enron and Bernard Madoff go beyond a question of ethics because in both cases ________. no harm was intended and th
Triss [41]

Answer:

laws were clearly broken

4 0
4 years ago
Read 2 more answers
Fact Pattern 18-B1
Roman55 [17]

Answer:

D) substantial, but not complete, performance

Explanation:

Even though Moses breached his contract with Noelle, most part of the contract was performed. The most significant part of the contract was the apartment itself, not the air conditioning system. For a material breach to exist Moses should have failed to perform in a greater way, not just the air conditioning. Probably Noelle should get a discount on the price of the apartment so that she can get the air conditioning system installed.

The fact that Noelle stopped paying for the apartment just because of this is a little overreacting. For example, if I buy a used car and the previous owner forgets to give me the spare tire, I cannot stop paying because it may be worth money but proportionally it's a small amount.

6 0
3 years ago
1. Discuss the following statement: "Corporations are not really run by their owners."
sergij07 [2.7K]
<span><span>1. </span>Discuss the following statement: "Corporations are not really run by their owners." Corporations are run by everyone who works for the corporation and without everyone working together, it will not run smoothly and bring in revenue.
</span> <span>
2. Why might an investor choose to become a partner in a limited partnership instead of purchasing the stock of an open corporation? If an investor decided to join in a limited partnership instead of purchasing the stock on an open corporation they would have less to do with the business side as they would in an open corporation. When an investor joins in a limited partnership they have less management responsibility and little to no liability besides their initial investment.
</span> <span>
3. Is growth a good thing for all firms? How does management know when a firm is ready to grow? Growth is not a good thing for all firms. Depending on what a company is looking to achieve long term, the financial assets they have now to achieve their growth and other goals are all subject to what the company is able to do with the finances and staffing they have. When a corporation is trying to decide whether or not they should grow, management will examine all aspects of the company to make sure they align with the growth plan.
</span> <span>

4. If you were to start a business, which ownership form would you choose? What factors might affect your choice? If I were to start a business, I would probably choose a limited liability company (LLC) as the ownership form and structure. An LLC is where the members within the company are not held personally liable for the company’s debts or liabilities. Think ownership form works well if you were to join forces an open up a business with a friend or family member. An LLC keeps the tax side of the business easier as allowing the individuals to be self-proprietors. When considering factors that may change this decision they would include: who I am going in business with, what I am in business for, my end goals, current goals and current financial status. </span>
3 0
4 years ago
Which of these statements about liquidity traps is false? Firms are unlikely to undertake investment during liquidity traps beca
nika2105 [10]

Answer:

The correct answer is: firms are unlikely to undertake investment.

Explanation:

The liquidity trap is a situation described in the Keynesian economy according to which, liquidity injections into the private banking system by the central bank do not lower interest rates or inject money into the economy and therefore do not stimulate economic growth as claimed by monetarism.

The liquidity trap occurs when people accumulate cash because they expect an adverse event, such as deflation, reduction in aggregate demand and GDP, an increase in the unemployment rate or a war. People are not buying, companies are not borrowing and banks are not lending either because they do not have enough solvency since the economic outlook is uncertain and investors do not invest because the expected returns on investments are low.

The most common characteristics of a liquidity trap are interest rates close to zero and fluctuations in the monetary base that do not translate into fluctuations in general price levels.

3 0
3 years ago
Of the 200 employees at Company A, 70 work part-time and the rest work full-time. If 140 of the employees like their jobs and 10
Sergeu [11.5K]
130 full time workers like there job
4 0
3 years ago
Other questions:
  • Complete the sentences to identify the primary and secondary audience of Lee’s business message.
    13·1 answer
  • _______ is the efforts of independent individuals, groups, and organizations to protect the rights of consumersa) sustainability
    14·1 answer
  • In the long run, if the firm decides to keep output at its initial level, what will it likely do? stay on but decrease to the po
    11·1 answer
  • The section of the continuity plan that provides instructions for all personnel is the:
    10·1 answer
  • Which of the following types of business does not require an attorney to set up?
    11·2 answers
  • According to the two-factor theory, ________. Group of answer choices there exists a hierarchy of needs within every human being
    6·1 answer
  • Rent control is a type of what?
    6·1 answer
  • Harriet and Harry Combs (both 37 years old) are married and both want to contribute to a Roth IRA. In 2019, their AGI before any
    8·1 answer
  • During the fiscal year ended June 30, 20X9, the city of Moorhead constructed a new courthouse that was budgeted to cost $5,000,0
    14·1 answer
  • 48. Although SellSmart brings together buyers and sellers and helps negotiate exchanges, it does not actually take title to any
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!