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Setler79 [48]
2 years ago
9

Central Valley Construction (CVC) purchased $80,000 of sheet metal fabricating equipment from Buffalo Supply on January 1, 20X1.

CVC paid $15,000 cash and signed a five-year, 10% note for the remaining $65,000 of the purchase price. The note specifies that payments of $13,000 plus interest be made each year on the loan’s anniversary date. CVC made the required January 1, 20X2, payment but was unable to make the second payment on January 1, 20X3, because of a downturn in the construction industry. At this time, CVC owed Buffalo Supply $52,000 plus $5,200 interest that had been accrued by both companies. Rather than write off the note and repossess the equipment, Buffalo Supply agreed to restructure the loan as one payment of $50,000 on January 1, 20X5, to satisfy the restructured note. Use the following links to the present value tables to calculate answers. (PV of 1, PVAD of 1, and PVOA of 1) (Use the appropriate factor(s) from the tables provided.)
Required:
Prepare the entries CVC and Buffalo Supply would make on January 1, 20X3, to record the restructuring. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)
Business
1 answer:
lys-0071 [83]2 years ago
4 0

Answer:

......................

Explanation:

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kramer

Answer:

Per unit customer costs = $4.5 per unit

Explanation:

Under activity based costing cost are allocated based on per activity rate.

Customer return processing activity rate = $45 per return

Shipping activity rate = $10 per shipment

for Product 1

Total cost of shipment and return will be as follows:

Shipment = 1,200 X $10 = $12,000

Returns = 150 X $10 = $1,500

Total = $12,000 + $1,500 = $13,500

Total units = 3,000

Per unit customer costs = $13,500/3,000 units = $4.5 per unit

4 0
2 years ago
Gia Company has the following information​ available: Cash pledged as collateral $ 2 comma 000 comma 000 U.S. Treasury bill due
stepan [7]

Answer:

$4,400,000

Explanation:

Cash Pledged                              $2,000,000

Treasury bill due in one month  $2,000,000

Cash in checking account           $400,000

Cash and Cash Equivalents         $4,400,000

Please note that treasury bill due after 90 days or maturing after 90 days are not considered cash equivalents.

6 0
2 years ago
Read 2 more answers
Caroline runs her own business selling horse related products (saddles, boots, bridles, etc.). She is considering investing $70,
Katyanochek1 [597]

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The present value the expected costs of the new security and data management system is $-75,062.5

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Kindly check attached picture for explanation

6 0
2 years ago
Carlos is a 25% owner of CEBJ Builders, a company that specializes in residential construction. The other 75% of CEBJ is owned b
yulyashka [42]

Answer:

$99,500

Explanation:

Adjusted gross income before considering the rental loss $118,000.

Less generated a loss of $18,500

Adjusted gross income $99,500

Carlos qualifies under the real estate professional exception due to the fact that he spends more than 50% of his personal service time in real property trade and the amount of time spent in real property trade is higher than 750 hours, he is as well the sole owner and spends more than 100hours.

Therefore the rental activity is not considered passive and he is allowed to offset the $18,500 loss against his active and portfolio income which is why Carlos'sadjusted gross income after considering the loss is $99,500 ($118,000 -$18,500)

7 0
2 years ago
You have two choices for how you are going to spend Saturday evening. You can go to the pub with your friends, which will cost y
icang [17]

Answer:

b. The economic cost of going to the pub is £40.

Explanation:

The correct option is - b. The economic cost of going to the pub is £40.

Reason -

Economic cost = Cost actually incurred to choose an option + opportunity cost

Now,

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Opportunity cost is the value of next best alternative forgone.

Now,

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∴ we get

Economic cost of going to the Pub= £30 + £10 = £40

3 0
2 years ago
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