On January 1, 2017, Crown Company sold property to Leary Company. There was no established exchange...
On January 1, 2017, Crown Company sold property to Leary Company. There was no established exchange price for the property, and Leary gave Crown a $400,000 zero-interest-bearing note payable, promising 5 equal annual installments of $80,000, with the first payment due December 31, 2017. The prevailing rate of interest for a note of this type is 8%. What is the carrying value of the notes payable at 12/31/17, after the first payment is made (assuming that the effective-interest method is used)? Choose the amount closest to your own calculation. Suggestion: prepare a complete amortization schedule like we did in class.
- $319,417
- $259,177
- $264,970
- $320,000
Homework Answers
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On January 1, 2017, Crown Company sold
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On January 1, 2018, Vaughn Manufacturing sold property to
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What should be the balance of the Discount on...
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Answer was wrong. Please provide the correct answer with a brief explanation. NEED TO BE ANSWERED...
Answer was wrong. Please provide the correct answer with a brief
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Cullumber Company. There was no established exchange price for the
property, and Cullumber gave Vaughn a $6300000
zero-interest-bearing note payable in 5 equal annual installments
of $1260000, with the first payment due December 31, 2018. The
prevailing rate of interest for a note of this type is 9%. The
present value of the note at 9% was $4901022 at January 1, 2018.
What should be the balance of the Discount on...
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Answer was wrong. Please provide the correct answer with a brief
explanation. NEED TO BE ANSWERED TODAY.
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Record the two journal entries that should be recorded by
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