On October 1, 20X1, a company purchased a piece of land by agreeing to pay the seller $450,000 in two years. If the company had borrowed the money from a bank to pay the seller immediately, management estimates the bank would have required interest of 9%. Calculate the amount of interest expense the company would record for its year ending December 31, 20X1 (rounded to the nearest dollar).
a. $40,500.
b. $9,289.
c. $10,125.
d. $8,522.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On October 1, 20X1, a company purchased a piece of land by agreeing to pay the seller $450,000 in two years. If the company had borrowed ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
At the U. S. division of Bluebell Inc. the productivity of the employees is going down. Kinsey, the branch manager conducts thorough research and learns that most of the employees were involved in social loafing.
Answers (1)
Managerial performance can be measured in many different ways including return on investment (ROI) and residual income. A good reason for using residual income instead of ROI is:
Answers (1)
Sales for the year were $500,000. Accounts receivable were $100,000 and $80,000 at the beginning and end of the year, respectively. Cash received from customers to be reported on the cash flow statement using the direct method is a.$520,000. b.
Answers (1)
The cable company must own a scarce resource. The cable company is experiencing diseconomies of scale. In order for a monopoly to exist in this case, the government must have intervened and created it.
Answers (2)
A school PTA wants to rent a dunking tank for its annual school fundraising carnival. The cost is $85.00 for the first three hours and then $19.50 for each additional hour or part thereof.
Answers (1)
New Questions in Business
A large oil company is studying the number of gallons of gasoline purchased per customer at self-service pumps. The mean number of gallons is 10.0, with a standard deviation of 3.0 gallons. The median is 10.75 gallons.
Answers (1)
Eighty percent of your business comes from 20% of your Question 7 options: effort. personal referrals. years in business. customers.
Answers (2)
Penelope has decided to start contributing to her 401 (k) plan at work. She will contribute 6% of her weekly salary and her company will match 4% of her salary.
Answers (1)
You may not want to spend money to attend a seminar on becoming more of a right-brain thinker in light of recent research. what do these findings indicate
Answers (1)
The following computations were made from Clay Co.'s current-year-end books:Number of days' sales in inventory 61Number of days' sales in trade accounts receivable 33What was the number of days in Clay's current-year operating cycle? A. 33B. 47C.
Answers (1)