On July 1, 2017. Agincourt Inc. rendered services in exchange for a 4%. 8-year promissory note having a face value of $500,000 (interest payable annually). Agincourt Inc. recently had to pay 8% Interest for money that it borrowed from British National Bank. The customer of the above fransaction has credit ratings that require them to borrow money at 12% interest. The present value of I at 12% for 8 perlods 0.40388 The present value of an ordinary annulty 4.9676| of 1 at 12% for 8 perlods Instructions By how much amount Ihe service revue wil be credited (Please wite yoUr answer without commas or sign of the doliar. Forekample. if your answer is $10.DOO write it 10000)

On July 1, 2017. Agincourt Inc. rendered services in exchange for a 4%. 8-year promissory note having a face value of $500,000 (interest payable annually). Agincourt Inc. recently had to pay 8% Interest for money that it borrowed from British National Bank. The customer of the above fransaction has credit ratings that require them to borrow money at 12% interest. The present value of I at 12% for 8 perlods 0.40388 The present value of an ordinary annulty 4.9676| of 1 at 12% for 8 perlods Instructions By how much amount Ihe service revue wil be credited (Please wite yoUr answer without commas or sign of the doliar. Forekample. if your answer is $10.DOO write it 10000)

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 61P

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