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Maru [420]
2 years ago
5

On January 1, year 2, Connor Corporation signed a $100,000 noninterest-bearing note due in three years at a discount rate of 10%

. Connor elects to use the fair value option for reporting its financial liabilities. On December 31, year 2, Connor's credit rating and risk factors indicated that the rate of interest applicable to its borrowings was 9%. The present value factors at 10% and 9% are presented below.
PV factor .751 10%, 3 periods
PV factor .826 10%, 2 periods
PV factor .909 10%, 1 periods
PV factor .772 9%, 3 periods
PV factor .842 9%, 2 periods
PV factor .917 9%, 1 periods
At what amount should Connor present the note on the December 31, year 2 balance sheet?
Business
1 answer:
Molodets [167]2 years ago
4 0

Answer:

the amount that should present the note in year 2 is $84,200

Explanation:

The computation of the amount that should present the note in year 2 is shown below:

= Amount of non-interest bearing note × present value factor for 2 years at 9%

= $100,000 × 0.842

= $84,200

hence, the amount that should present the note in year 2 is $84,200

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g The economic perspective focuses largely on marginal analysis, which means analyzing Multiple Choice peripheral elements of a
FromTheMoon [43]

Answer:

<u> The correct answer is:</u> the changes in the situation that would result from a given action.

Explanation:

Marginal analysis is an extremely important tool for the organizational decision-making process, because through this analysis it is possible to compare costs and benefits of a financial strategy, analyzing costs and results in order to increase the company's profitability.

This therefore constitutes a cost-benefit analysis technique, for example, when buying or investing in a product, its benefits and utilities are considered, so for a marginal change to be adopted, the acquired benefits need to outweigh the costs.

6 0
2 years ago
Aseller closed on his house on november 15. the annual tax bill for the current year is $1,475, which will be paid in arrears by
Paladinen [302]

Answer:

$1,291

Explanation:

The computation is shown below:

Per day allocation = $1,475 ÷ 360 days = 4.0972

Now the days of the seller is counted from January to October month i.e

= 10 months × 30 days

= 300 days

And, add the 15 days of November, so the total number of  days is 315 days

So, the seller portion of the tax is

= 315 days ×  4.0972

= $1,291

The calendar year started from January month and we take the same for the above calculation

7 0
2 years ago
A bond with a coupon rate of 7% makes semiannual coupon payments on January 15 and July 15 of each year. The Wall Street Journal
VladimirAG [237]

Answer:

The invoice price of the bond will be $100,127.88

Explanation:

Bonds are nothing but the debt instrument which a company uses to raise capital from the general public, these bonds can be of both short and long term period.

In the question it is given that bond has a coupon period of 182 days which means the bond is of short term period. Coupon rate of 7% means the bond gives the interest of 7% to its holder semiannually every year on January 15 and July 15.

It is given that the ask price for the bond on January 30 is 100.125 percent on par value of the bond which we are assuming to be $1000, which means the ask price is

$1000 X 100.125 = $100,125    ( ASK PRICE)

now we have to calculate the interest, remember the semiannually payment of interest has already been made on January 15 which means we have to find interest for only 15 days which will be taken out on par value

INTEREST = $1000 x 7% x 15 / 30

                 = $1000 x .07 x 1/ 2

                 = $35

INVOICE PRICE = INTEREST X \frac{TOTAL \: NUMBER \: OF \: DAYS}{COUPON \: PERIOD}   + Ask price

        =  $35 X 15 / 182

        = $2.884

Now adding this amount in to ask price

$100,125 + $2.884

= $100,127.88  ( INVOICE PRICE)

7 0
2 years ago
EZ Rental Car offers rental cars in an off-airport location near a major tourist destination in Florida Management would like to
trapecia [35]

Answer:

I used an excel spreadsheet to calculate this:

the least squares regression line:

y = a + bx

y = $2,937 + 3.96x

where y = total cash wash costs and x = rental returns

fixed costs = $2,937 per month

variable cost = $3.96 per car washed            

Download pdf
8 0
2 years ago
The decentralized commercial and office districts that have emerged on the fringes of metropolitan areas near such features as f
grandymaker [24]

Answer:

Edge Cities

Explanation:

  • Edge City is a small city generate in the U.s for a concentration of industry, shopping, and enjoyment on the outside of a conventional city center or city center in what was previously a social housing or rural suburb.
  • Many edge cities form at or near current or proposed intersections of the freeways, and are particularly likely to experience close to major airports.
  • Ridge communities designed for interchanges with freeways have a history of serious traffic problems if any of these highways remains unbuilt.
7 0
2 years ago
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