Determine the amounts of sales revenue

Assignment Help Accounting Basics

Reference no: EM132119340

Question - MMMM Corporation produced pollution abatement equipment at a cost of $950,000 for the main production facility of Quest Aeronautics. Upon delivery of the equipment on June 30, 2018, MMMM Corporation accepted a zero-interest note with a total face value of $2,000,000 payable in semi- annual installments of $250,000 over four years from Quest Aeronautics to finance the equipment. The first semi-annual payment of $250,000 was due from Quest Aeronautics on December 31, 2018.

MMMM Corporation determined that an interest rate of 8.5% was appropriate for providing financing to Quest Aeronautics over four years.

a. Compute the fair value of the sales transaction implied by the terms of the agreement.

b. Determine the amounts of sales revenue and interest revenue that MMMM Corporation should recognize in its income statement for the year ended December 31, 2018.

Reference no: EM132119340

Questions Cloud

Was it ethical for goodman to deny liability : Was it ethical for Goodman to deny liability? If the corporation had been properly formed, would Goodman have been liable

Evaluate performance metrics and dimensions : design a network, the first step is to collect network requirements. The network requirements are gathered from users and business requirements

What would happen to consumption inequality : Suppose a substantial part of the rise in inequality is due to the rising returns to education, so that more highly educated workers are permanently richer.

Forms an equilibrium mixture containing : What is the calculation of Kc for the following reaction if an initial reaction mixture of 0.600 mole of CO and 1.80 mole of H2 in a 6.00 liter container forms

Determine the amounts of sales revenue : Determine the amounts of sales revenue and interest revenue that MMMM Corporation should recognize in its income statement for the year ended December

How will consumption respond according to the argument : Ricardian equivalence: Suppose that the government fears the economy might be heading into a recession and decides to cut income taxes today in an effort.

Is this violating her first amendment rights as a teacher : Immediately, there is an "uprising" from parents who are calling for her dismissal. Is this violating her First Amendment rights as a teacher?

Assessment plan of the applications for network performance : Develop a questionnaire to gather requirements from users, sports complex management, and staff. What kinds of questions would you ask to better understand

Summarizing the three leadership styles : Utilizing the Saudi Digital Library, locate and read three scholarly research articles on the role of leadership in managing quality and safety initiatives.

User Account

All Pages