What is effective rate of interest implicit in the agreement

Assignment Help Accounting Basics
Reference no: EM132064909

Question - At the beginning of 2016, VHF Industries acquired a equipment with a fair value of $9,112,050 by issuing a four-year, noninterest-bearing note in the face amount of $12 million. The note is payable in four annual installments of $3 million at the end of each year.

What is the effective rate of interest implicit in the agreement?

Reference no: EM132064909

Questions Cloud

Fundamental management theories-concepts to business : Describe and apply fundamental management theories and concepts to business operation. Critically examine organisational and management practices.
Calculate the no of outstanding shares : ZedtelCorporation'sBalance sheet shows the outstanding common stock amount to be AED 54,758,000.
What is the companys cost of equity capital : If the risk-free rate is 5.6 percent and the expected return on the market is 10 percent, what is the company's cost of equity capital?
What is their best option to attain their goals : Based upon these facts, what is their best option to attain theirgoals?
What is effective rate of interest implicit in the agreement : The note is payable in four annual installments of $3 million at the end of each year. What is the effective rate of interest implicit in the agreement
Members of a texas general partnership : We did not find results for: Jackie, Jennifer and Jesse are active members of a Texas general partnership called "Swim City".
What is the value of the bond assuming a 14 percent market : The bond was issued 25 years ago and has 5 years to maturity. What is the value of the bond assuming a 14 percent market rate of interest?
What is the operating leverage : Question - If sales are $400,000, variable costs are 80% of sales, and operating income is $40,000, what is the operating leverage
Write the journal entry for each transactions : Calco, Inc., rents its store location. Rent is $1,000 per month, payable quarterly in advance. Write the journal entry for each of the following transactions

Reviews

Write a Review

Accounting Basics Questions & Answers

  Explain the tax advantage of allocating too much to building

Western Bank & Trust purchased land and a building for the lump sum of $3,000,000. Explain the tax advantage of allocating too much to the building

  Create a pivottable on a new worksheet

Profit by Product Category Using the Pivot Data worksheet, create a PivotTable on a new worksheet that shows Profit by Category

  Advice regarding the proper tax treatment of this gain

During the current year, he was able to sell 10 parcels at a net profit of $400,000. Ted would like your advice regarding the proper tax treatment of this gain

  Discuss the second choice is that they will wait four years

The second choice is that they will wait four years and give her $17,320. Marilyn can invest the money at a 5% rate

  Prepare a statement of changes in net assets

The City of Shipley maintains an Employee Retirement Fund; a single-employer, defined benefit plan that provides annuity and disability benefits.

  Accounting for capital leases versus purchased assets

Accounting for capital leases versus purchased assets Ambrose Co. has the option of purchasing a new delivery truck for $42,300 in cash or leasing the truck for $9,150 per year, payable at the end of each year for six years.

  Problem on home equity loan

In mid-2015, Elizabeth and Fitzwilliam, successful entrepreneurs, moved in together and bought a house. Although unmarried, they are co-owners of the property.

  Compute basic earnings per share

The information below pertains to Alaska Airlines for 2015. Compute basic earnings per share for 2015. Compute diluted earnings per share for 2015.

  Complete the income statements using absorption costing

Adria Lopez expected sales of her line of computer workstation furniture to equal 300 workstations for 2014. Complete income statements using absorption costing

  Ordinary loss during the current year

Bases for the partnership interests at the beginning of the year are $80,000 for Mary and $120,000 for Gary after considering the impact of liabilities but before considering operatons. MG has $200,000 ordinary loss during the current year. How much ..

  Definite contract exists and the revenue

Midwest Advertising Agency handles advertising for clients under contracts that require the agency to develop advertising copy and layouts, as well as place advertisements in various media.

  What is the depreciable basis for this asset

What is the depreciable basis for this asset. If the percentage depreciation in the first year is 20%, what is the recovery allowance

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!

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