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exis [7]
3 years ago
15

On February 1, 2020, Sheffield Corporation factored receivables with a carrying amount of $740000 to Ivanhoe Company. Ivanhoe Co

mpany assesses a finance charge of 4% of the receivables and retains 6% of the receivables. Relative to this transaction, you are to determine the amount of loss on sale to be reported in the income statement of Sheffield Corporation for February. Assume that Sheffield factors the receivables on a with recourse basis. The recourse obligation has a fair value of $3500. The loss to be reported is
Business
1 answer:
Mrac [35]3 years ago
3 0

Answer:

$33,100

Explanation:

Calculation to determine what The loss to be reported is

Using this formula

Loss=(Factored receivables*finance charge)+Fair value

Let plug in the formula

Loss=($740,000 × .04)+ $3,500

Loss= $29,600+$3,500

Loss=$33,100

Therefore The loss to be reported is $33,100

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The night before a midterm exam, you decide to go to the movies instead of studying for the exam. You score 60 percent on your e
Aleks [24]

Answer:

10% of exam score

Explanation:

Opportunity Cost is the cost of next best alternative, foregone (sacrifised)  while making a choice.

Example : If a person has option to have an apple or an orange, & choses to have apple. The opportunity cost of having an apple is the sacrifised orange.

Given : A night before mid time exam, spent while watching movies - later lead to fall in exam grade from 70 % to 60%

The opportunity cost of movies watched, is the sacrifised grade of exam, which would have gotten, if the time would have spent in studying. The corresponding grade lost = 70% grade achievable - 60% grade achieved. Hence, the opportunity cost = 10% of exam score.

4 0
3 years ago
At December 31, 2020, Desert Company reports the following balances for its liability accounts:   7% note payable issued 10/1/20
LekaFEV [45]

Answer:

Desert Company

The amount of notes payable that should be recorded as a current liability will be $520,000.

Explanation:

The 8% notes payable had been refinanced to a long-term notes payable.  But, the 7% notes payable was still being negotiated for refinancing.  Since the refinancing had not been agreed, the notes payable would still have a balance of $520,000.  However, a note in accounts could state the fact that the notes payable was being negotiated for refinancing.

5 0
3 years ago
A non-governmental, not-for-profit organization held the following investments: Investment Cost Fair value (beginning of the yea
zysi [14]

Answer:

c. $24,850

Explanation:

A non-governmental, not-for-profit organization held the following investments: Investment Cost Fair value (beginning of the year) Fair value (end of the year) Stock A (100 shares) $50 per share $45 $51 Stock B (200 shares) $40 per share $41 $49 ; Bonds Cost $9,000 Fair value (beginning of the year) Fair value (end of the year)$10,000 $9,950

The amount that should be the total value of investments reported in the year-end statement of financial position? will be the fair value of the investments at the end of the year becaue investments by financial reporting standards are carried at fair values unlike physical assets carried at costs

Stock A = 100 Shares x fair value end of year of $51 = 5,100

Stock B = 200 Shares x fair value end of year of $49 = 9,800

Bond @ Fair value end of year...........................................= 9,950

Total............................................................................................$24,850

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3 years ago
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Vitek1552 [10]
The Y in APY means yearly, the answer is APY
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3 years ago
What is the major advantage of processing information automatically?
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4 years ago
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