Reference no: EM13765307
(Interest Revenue from Installment Sale)
Upper World Corporation sells tractor trailers on the installment plan. On October 1, 2014, Upper World entered into an installment-sale contract with Lower Sky Inc. for a 5-year period. Equal annual payments under the installment sale are $250,000 and are due beginning October 1, 2014.
Additional information
1. The amount that would be realized on an outright sale of similar trailer is $965,000.
2. The cost of the trailer sold to Lower Sky Inc. is $786,000.
3. The finance charges relating to the installment period are $285,000 based on an effective interest rate of 14.9%, which is appropriate.
4. Circumstances are such that the collection of the installments due under the contract is reasonably assured.
Instructions
What income or loss before income taxes should Upper World record for the year ended December 31, 2014, as a result of the transaction above?
|
Difference between the various elements of crime
: What is the difference between the various elements of crime, including actus reus, mens rea, and concurrence? How do they relate to the case
|
|
What are pros and cons of using an interpreter in countries
: What would your students need to know in regards to high- and low-context language, language diversity, interaction, nonverbal communication, and so forth - What are the pros and cons of using an interpreter in these countries?
|
|
Cognition, language, and intelligence issues
: What problem-solving approach would you implement to solve this problem?
|
|
Describe an optimal inventory policy
: Economic Order Quantity. The Trektronics store begins each month with 740 phasers in stock. This stock is depleted each month and reordered. If the carrying cost per phaser is $26 per year and the fixed order cost is $340, what is the total carrying ..
|
|
Interest revenue from installment sale
: Upper World Corporation sells tractor trailers on the installment plan. On October 1, 2014, Upper World entered into an installment-sale contract with Lower Sky Inc. for a 5-year period. Equal annual payments under the installment sale are $250,00..
|
|
Describe how justification and excuse play a role in cases
: Explain the nature and types of defenses used in the cases and what evidence was used to demonstrate the defense. Describe how justification and excuse play a role in the cases
|
|
What is the amount of the companys accounts receivable
: Size of Accounts Receivable. Essence of Skunk Fragrances, Ltd., sells 6,500 units of its perfume collection each year at a price per unit of $270. All sales are on credit with terms of 1/10, net 30. The discount is taken by 40 percent of the customer..
|
|
Write a paper on silas marner by geroge eliot
: Write a paper on Silas Marner by Geroge Eliot and Far from the Madding Crowd by Thomas Hardy about Social Class in each novel.
|
|
List the state where the law is effective
: List the elements of each crime and facts that establish each element. Provide a specific law for each charge. List the state where the law is effective. Each team member's state needs to be represented
|