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larisa86 [58]
1 year ago
6

On October 1, Black Company receives a 9% interest-bearing note from Reese Company to settle a $20,000 account receivable. The n

ot is due in six months. At December 31, Black should record interest revenue of
a. $0
b. $450
c. $900
d. $1800
Business
1 answer:
Anna007 [38]1 year ago
4 0

Answer:

B. $450

Explanation:

Interest rate = 9% = 0.09

Account receivable = $20,000

Interest = 0.09 x 20,000

= $1,800

At December 31, Black should record interest revenue of

1,800 x (90/360)

= 1,800 x 0.25

= $450

The answer is $450

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An annuity with an infinite life is called​ a(n) ________. A. perpetuity B. deep discount C. primia D. option
Tasya [4]

Answer:

The correct answer is letter "A": perpetuity.

Explanation:

Annuities are regularly-provided income hired through insurance. Those payments can be provided within a short or long period of time until an undetermined date. That is the reason why annuities are also called perpetuities. Annuities are taxed at regular income tax rates.

3 0
2 years ago
Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are p
PilotLPTM [1.2K]

Answer:

The number of units the company would have to manufacture during the year would be 780,000 units

Explanation:

To find out how much purchase is made, first we have to calculate the production level. The equation for production level is shown below:

Production level = Closing stock of finished goods + Sales - Opening stock of finished goods

= 76,000 + 730,000 - 26,000

= 780,000 units

Rest cost like opening and ending balance of raw material , required gram is irrelevant for computation part. Thus, it is not considered.

Hence, The number of units the company would have to manufacture during the year would be 780,000 units

8 0
2 years ago
Karen, an automobile mechanic employed by an auto dealership, is considering opening a fast-food franchise. If Karen decides not
vova2212 [387]

Answer:

The right solution is "Not Deductible".

Explanation:

If everyone's investigation for a company or starting a company fails, costs classified into two broad categories besides you:

  • Unless you're a person and your effort to start a company isn't successful, there are 2 kinds of investments you have had in attempting to develop yourself in the company.
  • The expenses clients used to have before you made an intention to open a particular business. These would be personal but non-deductible charges. They include other expenses incurred throughout a regular search for something like a company or equity investment opportunity or perhaps a thorough investigation into it.
  • The expenditures you have in your effort to purchase or launch a particular venture. Such charges are capital expenditures, and that as a capital loss, you will subtract them.
6 0
2 years ago
Which two of these are essential for completing an initial mortgage loan application?
Vitek1552 [10]

*Your name.

*Your income.

*Your Social Security number (so the lender can check your credit)

*The address of the home you plan to purchase or refinance.

*An estimate of the home's value.

*The loan amount you want to borrow.

4 0
1 year ago
Suppose that the standard deviation of quarterly changes in the prices of a commodity is $0.65, the standard deviation of quarte
Natasha_Volkova [10]

Answer:

The optimal hedge is 0.642 and it means that the size of the future positions should be 64.2% of the exposure of the company in a 3 month-hedge.

Explanation:

optimal hedge ratio

= coefficient of correlation*(standard deviation of quarterly changes in the prices of a commodity/standard deviation of quarterly changes in a futures price on the commodity)

= 0..8*(0.65/0.81)

= 0.642

Therefore, The optimal hedge is 0.642 and it means that the size of the future positions should be 64.2% of the exposure of the company in a 3 month-hedge.

6 0
2 years ago
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