Calculate present value of the note

Reference no: EM1347576

On December 31,2011 Green company finished consultation services and accepted in exchange a promissory note with a face value of $500,000, a due date of December 31, 2014, and a stated rate of 8%, with interest receivable at end of each year. The fair value of the services is not readily determinable and the note is not readily marketable. Under the circumstances, the note is considered to have an appropriate imputed rate of interest of 10%.

Instructions:
a) Determine the present value of the note.
b) Prepare a full Schedule of note discount amortization for Green Company under the effective interest method. (Round to whole dollars)

Reference no: EM1347576

Questions Cloud

What is the change of potential energy : An orienter runs the following course: 100 m at 35 degrees, 150 m at 220 degrees, and 50 meters at 170 degrees. find the resultant displacement.

Gender and employee motivation : Gender and Employee Motivation - Explore the issue of motivation and its relation to gender. How are men and women motivated differently?

What was zach economic profit - loss for the year : Also during that first year, the cookie business incurred costs that required outlays of money amounting to $9,000. What was Zach's economic profit (loss) for the year.

Theories related to motivation to job satisfaction : which theory best relates motivation to job satisfaction: Skinner's reinforcement theory, Vroom's expectancy theory; or Locke's goal-setting theory?

Calculate present value of the note : On December 31, 2011 Green corporation completed consultation services & accepted in exchange a promissory note with a face price of 500,000, due date of December 31, 2014, & a stated rate of 8 percent, so calculate the present value of the note.

Theoretical framework for studying motivation : Describe at least two theoretical frameworks that might help with the research of motivation and why. How will your choice(s) of theoretical frameworks affect the manner in which you conduct your research?

Explain why do you suppose that employees pay for general : Explain why do you suppose that employees pay for general training and the employer pay for specific training with respect to the basic competitive model.

Program to find real solutions : Method, which determines whether value of "b squared" - 4ac is negative. If negative, code then prints out message "no real solutions" and returns from method.

Personal motivation : Develop a plan to improve your strategies of self- and other-motivation. Include a timetable and strategy for third-party accountability.

User Account

All Pages