User Account

All Pages

At what amount will kimberly initially value the equipment

Assignment Help Financial Management
Reference no: EM132404667

Question :

On June 30, 2021, Kimberly Farms purchased custom-made harvesting equipment from a local producer. In payment, Kimberly signed a noninterest-bearing note requiring the payment of $60,000 in two years. The fair value of the equipment is not known, but an 8% interest rate properly reflects the time value of money for this type of loan agreement. (FV of $1 PV of $1 FVA of $1 PVA of $1 FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

At what amount will Kimberly initially value the equipment?

How much interest expense will Kimberly recognize in its income statement for this note for the year ended December 31, 2021? (Round your answers to the nearest dollar value.)

Reference no: EM132404667

Questions Cloud

What are some of the threat of new entrants : What are some of the threat of new entrants, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitute products and services
How many units will need to be sold to? breakeven : Grosheim Incorporated has fixed expenses of $211,500 per year. Right? now, Grosheim Incorporated is selling its products for $250 per unit.
Difference between an political and market entrepreneur : 1. What is the difference between an political and market entrepreneur? 2. Why was Vanderbilt more successful compared to Collins?
Economic problem as it pertains to the garden : a. Explain the economic problem as it pertains to the garden, the balloon and the crowd. b. Explain the property right at issue.
At what amount will kimberly initially value the equipment : At what amount will Kimberly initially value the equipment? How much interest expense will Kimberly recognize in its income statement for this note for the year
Income from present job for the period of study : Being a full time student, he will have to forego the income from his present job for the period of study.
Traditional supply and demand models : Describe why one might want to rethink the traditional supply and demand models that help us understand why unemployment exists and how it might be reduced.
Determine the amounts of the dividends to be allocated : Determine the amounts of the dividends to be allocated to preferred and common stockholders assuming that the preferred stock is noncumulative.
Calculate the selling price for each bond issue : Calculate the selling price for each bond issue. If required, round your intermediate calculations and final answers to the nearest dollar.

Reviews

Write a Review

Financial Management Questions & Answers

  What is inventory turn over

The blue moon corporation has ending inventory of $407,534,and cost of goods sold for the year just ended was$4,105,612. what is inventory turn over?

  Purchase zero coupon bond with a face value

Suppose you purchase a zero coupon bond with a face value of $1,000, maturing in 22 years, for $215.75. Zero coupon bonds pay the investor the face value on the maturity date. What is the implicit interest in the first year of the bond's life?

  Cover just the cost of the additional physicians and NPs

Calculate the capitation rate that would be needed to cover just the cost of the additional physicians and NPs.

  Should investors care about a multinational firm

Should investors care about a multinational firm's accounting exposure - Accounting exposure is any exposure of a multinational firm's consolidated financial statements to exchange rate movements.

  Assume the company tax rate-debt

Assume the company’s tax rate is 40 percent. Debt: 8,900 8.2 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity,

  Compare two stocks

Compare two stocks. Both have earned 8% per year on average. However, stock A has oscillated between 6% and 10%.

  What is the internal rate of return for proposal

What are the annual net cash flows that should be used to evaluate the opportunity? What is the internal rate of return for the proposal?

  Gain or lose from this investment strategy

What is the pattern of payoffs from this investment look like on a payoff diagram? What is the most that you can gain or lose from this investment strategy?

  Explain stock market efficiency

Explain stock market efficiency. If the market is efficient, would you invest in each of the following? Explain.

  Same constant growth rate in dividends for ever

The stock of Rand, Inc. and McNally Corp. are set to pay the same dividend today, and are projected to have the same constant growth rate in dividends for ever.

  Consider put option for the intel stock

Consider a put option for the Intel stock. The exercise price of the put option is $30. Now the option is about to expire in a couple of seconds. 6. If the stock price is $31.50 now, what is the current value of the option? What if the stock price is..

  Net present value approach in use of discounted cash flows

Comment on the importance of using the net present value approach in the use of discounted cash flows:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd