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guapka [62]
3 years ago
10

At the end of June, the Marquess Company factored $200,000 in accounts receivable with Homemark Finance. Homemark immediately re

mitted to Marquess cash equal to 90% of the factored amount. Factor will remit the excess to Marquess, an the remaining receivables has the estimated fair value of $15,000. The transfer is made without recourse. Homemark charges a fee of 3% of receivables factored. What amount of loss on sale of receivables would Marquess record in June?
a. $6,000.
b. $4.500.
c. $1,500.
d. $0.
Business
1 answer:
sladkih [1.3K]3 years ago
8 0

Answer:

a. $6,000

Explanation:

Calculation to determine What amount of loss on sale of receivables would Marquess record in June

Using this formula

Loss on sale of receivables=Accounts receivable factored *Fee percentage of receivables factored

Let plug in the formula

Loss on sale of receivables =$200,000 × 3%

Loss on sale of receivables = $6,000

Therefore the amount of loss on sale of receivables that Marquess would record in June is $6,000

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Fishermen’s Corp. is considering purchasing a boat. If the boat was purchased, it is expected to receive $20,000 at the end of t
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Answer:

The boat today is worth 100,440 dollars

Explanation:

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\frac{20,000}{(1 + 0.08)^{1} } = PV  

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1 20000  18, 518

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5 0
3 years ago
A local philanthropist made an unconditional pledge to donate $100,000 to a not-for-profit organization to be paid in five equal
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Answer:

The correct answer is C)

Explanation:

A pledge in this context is a vow or a promise to make a donation or give something at a future date. It may be vocalized or communicated in writing.  

The Financial Accounting Standards Board (FASB), sets out the criteria for recognizing a pledge or a promise as follows:

  1. Relevance— If the promise is important enough to make a difference in the users  decisions,  then it ought to be recognized
  2. Definitions—If the item satisfies the definition of a component of a financial statement, then it ought to be recognized;
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It is clearly stated that where the certainty or reliability of a promise or a vow is difficult that measure, it is better to decline from recognizing such a pledge.

                 

Cheers!                      

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3 years ago
During 2011, Simon Kidman, the sole shareholder of a calendar year S corporation, received a distribution of $75,000. On Decembe
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= $1,000

Long Term Capital gain is therefore $1,000.

3 0
3 years ago
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