On 12-31-21, Austin entered into an agreement that required Austin to pay a supplier $4,000 every year on 12-31 until 12-31-30. The agreement required Austin to make the first annual payment on 12-31-24. Assume the market rate of interest for Austin is 6%. As of 12-31-21 what was the present value of Austin's obligation?
Q: At the beginning of the period, the Cutting Department budgeted direct labor of $128,000, direct…
A: First, we need to calculate the budgeted cost per hour for each cost item. This is done by dividing…
Q: E8-20 (Algo) Computing and Reporting the Acquisition and Amortization of Three Different Intangible…
A: Step 1: Solution:Requirement 1)Computation of the acquisition cost of each intangible asset. AB1…
Q: A6
A:
Q: A9 please use table.......
A: THANK YOU
Q: Early in 2021, Robbinsville Press was organized with authorization to issue 100,000 shares of $100…
A: Step 1:Partial balance sheet as of December 31, 2024: Particulars Amount Amount Shareholders Equity…
Q: provide correct answer
A: so Option C ($28,975 favorable) is the correct answer THANK YOU
Q: help please answer in text form with proper workings and explanation for each and every part and…
A: Step 1:1) Working: Depreciation expense = (Initial cost - Residual value) / useful life = ($57,000 -…
Q: average rate of return, cash payback period, net, present value method for a service company The…
A: The average rate of return is the average annual amount expected from an investment. Calculating it…
Q: Presented below is information related to equipment owned by Novak Company at December 31, 2025.…
A: To calculate the impairment of an asset, take the carrying value of the asset (its historical cost…
Q: Provide Answer
A: The operating cycle is a measure of the time it takes a company to convert its cash into inventory,…
Q: Skor Co. leased equipment to Douglas Corp. on January 2, 2011, for an 8-year period expiring…
A: In a sales-type lease, the lessor (Skor Co. in this case) recognizes the profit or loss on the sale…
Q: Cooper Construction Company sells a used crane to Alpha Construction for $94,000. The crane, which…
A: Let's go through the requirements step by step:### Requirement a. Compute the gain from the sale.The…
Q: None
A: To compute for goodwill, we subtract the purchase price (or the consideration transferred) to the…
Q: please step by step solution.
A: AnswersSolutionGuidethe formula for the current ratio is: current assets / current liabilitieshence,…
Q: Need Help please
A: Activity based costing: Overhead allocation under activity based costing is based on cost pools and…
Q: The following data from the just completed year are taken from the accounting records of Mason…
A: Certainly! Let's go through a detailed explanation of each step required to prepare the schedule of…
Q: 15 Devito & Co. issued bonds on January 1, 2018. At January 1, 2023 the balances are as follows: A…
A: A) To record the interest payment, simply debit interest payable then credit cash for $1,200,000. B)…
Q: 3. The reliability function (7) of a system, where time is in units of hours, describes the time to…
A:
Q: Need answer
A: If you have any questions let me know in comment box thankyou for your question.
Q: go.3
A: 1) Calculation of Break Even in Total Units, and Number of Units of Squares and Circles Must Be…
Q: Required Information [The following Information applies to the questions displayed below.] The…
A: Step 1: Calculation of the Cost of goods manufactured: GARCON COMPANY PEPPER COMPANYDirect…
Q: Which of the following statements about corporate social responsibility (CSR) is false? O a. CSR…
A: The false statement about CSR is: d. CSR activities may include waste and pollution minimization but…
Q: net present value — unequal lives Dakota mining company has two competing proposals: a diamond core…
A: The Net present value of two proposals are under :- Diamond Core DrillHydraulic ExcavatorPresent…
Q: Tidal Wave is considering purchasing a water park in Fort Worth, Texas, for $2,100,000. The new…
A: Requirement 1:(a) Compute the payback period (in years).The payback period is the time it takes for…
Q: All of the following statements regarding asset impairments are true EXCEPT which one? O After…
A: Asset impairment occurs when the carrying amount of an asset exceeds its recoverable amount. The…
Q: An asset is considered impaired if: O the fair market value of the asset exceeds the carrying value…
A: In accounting, an asset is considered impaired when its carrying amount (book value) is greater than…
Q: Ivanhoe Incorporated had the following transactions involving current assets and current liabilities…
A: Approach to solving the question:To solve this problem, we need to calculate the current ratio for…
Q: George Kyparisis makes bowling balls in his Miami plant. With recent increases in his costs, he has…
A: Given: The input and output of a month in the last year and now: Last year Now Cost per unit…
Q: Mohammed Corporation's comparative balance sheet for current assets and liabilities was as follows:…
A: Compute changes from Y1 to Y2: AR = 16,200 - 15,400 = 800 increasedInventory = 70,200 - 70,900 =…
Q: Need Correct answer from option
A: 1. Calculate Return on Assets (ROA):ROA = Net Income / Total AssetsROA =20,000 / 240,000 = 0.0833 or…
Q: No chatgpt used i will give 5 upvotes typing please
A: Given information:Consumption (C)Disposable Income…
Q: Give me Answer all
A: Answer to Q-25 Cash Flow: The movement of cash or money in and out of the organization is termed…
Q: A plant asset was acquired on January 1, 2008, has a cost of $24,000 and a salvage value of $6,000.…
A: There are three main methods of depreciation: straight-line, declining balance, and…
Q: Caitlin, Tiffany, and Nicholas invested a total of $540,000 in the ratio of 8 : 6 : 4 to start a…
A: Given that, Caitlin, Tiffany, and Nicholas invested a total of $540,000 in a ratio of 8 : 6 : 4,…
Q: A company that uses a perpetual inventory system purchased inventory on account and later returned…
A: In this scenario, a company has purchased inventory on account, meaning they have not yet paid for…
Q: At the beginning of the period, the Cutting Department budgeted direct labor of $128,000, direct…
A: A flexible budget adjusts or flexes for changes in the volume of activity. The flexible budget is…
Q: Walmart Inc. Consolidated Statements of Income Fiscal Years Ended January 31, (Amounts in millions,…
A: Part 2: Explanation:Step 1: Calculate the dividend payout ratio.\[ \text{Dividend Payout Ratio} =…
Q: Some schools of thought distinguish between the decision process (that is, the techniques and the…
A: There are many different processes and methods involved in the decision-making process, which is a…
Q: For 2023, Wilma has properly determined that her taxable income is $36,000, including $3,000 of…
A: Please refer below for complete computations:$3000 unrecaptured section 1250 gain will be taxed at…
Q: None
A: Step 1: Introduction to Accounting Equation:An accounting equation helps in understanding the…
Q: FootWorks purchases shoes for $28 each pair and sells them at a regular price of $44 each pair. a.…
A: Given:Cost price per pair = $28Selling price per pair = $44Profit per pair = $5.25Overhead expense…
Q: Compute the taxable income for 2023 in each of the following independent situations:…
A: SOLUTION.To compute the taxable income for each of these individuals for 2023, we follow these…
Q: At September 1, 2010, Kern Enterprises reported a cash balance of $45,000. During the month, Kern…
A: The initial cash balance reported by Kern Enterprises on September 1, 2010, is $45,000. This is the…
Q: Nictus Limited produces electrical blankets. The blankets are sold for R 750 per unit and variable…
A: Step 1: Total net profit can be calculated by subtracting the total fixed costs from the…
Q: dgdfdgdhfgff
A: It looks like your message might have been incomplete or accidentally sent. How can I assist you…
Q: PLEASE PUT THE FOLLOWING STEPS IN THE ACCOUNTING CYCLE IN ORDER: GENERAL JOURNAL/GENERAL LEDGER/ 10…
A: The first step in the accounting cycle is to record the transactions in the General Journal. This is…
Q: Amanda wants to take the next four years off work to travel around the world. She estimates her…
A: Requirement 1: Funding Travels with 12% InterestSince Amanda's savings earn interest, we can't…
Q: Martins Grobbler is a courier services company. The company needs to replace a few of its old…
A: To calculate the weighted average cost of capital (WACC) for Martins Grobbler, we'll follow these…
Q: None
A: Here's the breakdown for why $4,200 might be the intended answer:Interest Expense with Amortization:…
Q: ! Required information Use the following information for the Quick Study below. (Algo) [The…
A: Part 2: Explanation:Step 1: Calculating flexible budget amounts- Sales: \( \$469,200 \times…
![On 12-31-21, Austin entered into an agreement that required Austin to pay a supplier $4,000 every year on 12-31 until 12-31-30. The agreement
required Austin to make the first annual payment on 12-31-24. Assume the market rate of interest for Austin is 6%. As of 12-31-21 what was the
present value of Austin's obligation?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcaac65c6-fbc3-4d23-bc38-da6bda30c023%2Fc340560c-2801-478b-b3c0-a1a38e006d0c%2F7ccpciv_processed.jpeg&w=3840&q=75)
Unlock instant AI solutions
Tap the button
to generate a solution
Click the button to generate
a solution
- Use the following information for the next two questions:On January 1, 20x1, ABC Co. obtained a five-year, ₱1,000,000 variable-rate loan with interest paymentsdue at each year-end and the principal due on December 31, 20x5.As protection from possible fluctuations in current market rates, ABC Co. enters into an interest rateswap for the whole principal of the loan. Under the agreement, ABC Co. shall receive variable interestand pay fixed interest based on a fixed rate of 8%. Swap payments shall be made at each year-end.The following are the current market rates: Jan. 1, 20x1 8% Jan. 1, 20x2 9% Jan. 1, 20x3 12% 62. How much is the fair value of the interest rate swap on December 31, 20x1? (Indicate whether it is aderivative asset or liability.)a. 32,397 assetb. 32,397 liabilityc. 46,884 assetd. 53,223 liability63. How much is the fair value of the interest rate swap on December 31, 20x2? (Indicate whether it is aderivative asset or liability.)a. 83,294 assetb. 83,294…Zoro Company enters into a contract to sell Product A and Product B on July 1, 2020 for an upfront cash payment of P250,000. Product A will be delivered at the end of the year, and Product B will be delivered the following year. Zoro Company sells Product A for P80,000 and Product B for P240,000. 1. How many performance obligations are there in the contract? 2.what is the transaction price? 3.how much is revenue to be recognized in 2020? 4. how much is revenue to be recognized in 2021?On January 1, 2021, Chua Company purchased a piece of equipment with a list price of P6,000,000. The contract stipulates that Chua pays a down payment of P2,000,000 with the balance due in ten equal semi-annual installments of P518,018 on June 30 and December 31. At the time of purchase, the prevailing interest rate on such contracts was 10%. How much would be debited as equipment? a. P4,000,000 b. P5.180.000 c. P6,000,000 d. P6,180, 183
- The Jasmine Tea Company purchased merchandise from a supplier for $28,700. Payment was a noninterestbearing note requiring Jasmine to make five annual payments of $7,000 beginning one year from the date of purchase. What is the interest rate implicit in this agreement?On January 1, 20x1, ABC Co. obtained a five-year, ₱1,000,000 variable-rate loan with interest payments due at each year-end and the principal due on December 31, 20x5. As protection from possible fluctuations in current market rates, ABC Co. enters into an interest rate swap for the whole principal of the loan. Under the agreement, ABC Co. shall receive variable interest and pay fixed interest based on a fixed rate of 8%. Swap payments shall be made at each year-end. The following are the current market rates: Jan. 1, 20x1 8% Jan. 1, 20x2 9% Jan. 1, 20x3 12% 16. How much is the fair value of the interest rate swap on December 31, 20x1? (Indicate whether it is a derivative asset or liability.) a. 32,397 asset b. 32,397 liability c. 46,884 asset d. 53,223 liabilityABC Corporation will be acquiring a P3,000,000 face value loan three months from now. It entered into an IRG 3-6 to set the interest rate of the loan to 8%. It paid P20,000 for the IRG. With this contract, what is the maximum simple effective interest rate relating to loan?
- Company AAA borrowed P1,000,000 on July 1, 2021 and issued a 9% one-year note payable every after three months starting September 30, 2021. The quarterly payments were P264,200 inclusive of interest. If Company AAA paid the required quarterly payments when due, what is the carrying value of the note payable on December 31, 2021? O P528,400 O P522,500 O P511,162 O P488,156Megabank granted an 8% 3-year loan to Global Company on January 1, 2018. The interest on the loan is payable every December 31. Megabank incurred P148,122 of direct origination cost but an origination fee of P300,000 was charged against Global Company. The effective rate on the loan as a result of the origination fee and cost is now 9%. What is the amortized cost of the loan on December 31, 2019 in Megabank's accounting book ?Company A agrees to enter into an FRA agreement with Company B in which Company A borrows $ 50,000,000 in 6-month time for a period of 9 months, and Company B invests $ 50,000,000 in 6-month time for a period of 9 months. The 6-month interest rate is 0.75% per annum and the 9-month interest rate is 0.90% per annum. (i).What is the interest rate that both companies agreed upon? (ii).Suppose that at the expiry date of the FRA, the 6-month interest rate is 0.81% per annum and the 9-month interest rate is 0.96% per annum, calculate the compensatory payment and which party receives it?
- On January, 20x8, Harrow Co. as lessee signed a five-year non-cancelable equipment lease with annual payments of P100,000, beginning December 31, 20x8. The implicit interest rate is 10%. How much is the interest expense for the year ended December 31, 20x8?Company A agrees to enter into an FRA agreement with Company B in which Company A borrows $ 40,000,000 in 6-month time for a period of 9 months, and Company B invests $ 40,000,000 in 6-month time for a period of 9 months. The 6-month interest rate is 0.77% per annum and the 9-month interest rate is 0.89% per annum. What is the interest rate that both companies agreed upon? Suppose that at the expiry date of the FRA, the 6-month interest rate is 0.81% per annum and the 9-month interest rate is 0.96% per annum, calculate the compensatory payment and which party receives it? Su ppose that at the expiry date of the FRA, the 6-month interest rate is 0.79% per annum and the 9-month interest rate is 0.86% per annum, calculate the compensatory payment and which party receives it?On 1/1/19, Lantana Loan Co., a calendar-year company, accepts a 5%, $500,000 three-year loan that pays interest semi-annually on 6/30 and 12/31 from Diamond Distributors, when the market rate of interest was 10%. In exchange for the note, Diamond agrees to make semi-annual Interest payments and repay the full $500,000 at maturity. Complete the amortization table for this note, then complete all journal entries for 2019. Answer: Beginning note balance is calculated using Excel PV function with the following inputs: Amortization Table: Journal Entries: