User Account

All Pages

What is the interest expense that the analyst would record

Assignment Help Accounting Basics
Reference no: EM133064645

Question - On 31/12/21 XYZ Corp is involved in a legal case involving air pollution. In the event that XYZ Corp is found to be liable, damages of 65000 have to be paid. At the moment XYZ Corp does not recognize a provision for this amount. Assuming that an analyst believes that it is likely that XYZ Corp will lose the court case and has to pay 5000 on 31/12/24. The discount rate is 10%. What is the interest expense that the analyst would record in the 2022 income statement?

Reference no: EM133064645

Questions Cloud

How many shares have been issued : The balance sheet for Ronlad Corporation reported 188,000 shares outstanding, 268,000 shares authorized, How many shares have been issued
Concepts of capitalism and socialism : Explain the concepts of capitalism and socialism. Identify three pros and three cons for both capitalism and socialism.
Determine the authorized shares : The par value of the stock is $5. When the stock was bought back from the public, the market price was $22. Determine the authorized shares
Investment return and investment risk : Understanding this relationship is critical to making well-reasoned financial decisions, Discuss events that can cause price of a stock to increase or decrease
What is the interest expense that the analyst would record : In the event that XYZ Corp is found to be liable, damages of 65000 have to be paid. What is the interest expense that the analyst would record
What is competitive structure of pharmaceutical industry : What is the competitive structure of the pharmaceutical industry? (E.g., are there many similarly sized businesses competing with each other
What is the cost of the nil paid rights : On 25 February 2018, Jane bought 2,500 ordinary shares in XYZ Ltd at a cost of R8 125. What is the cost of the nil paid rights
Supply chain activities during global pandemic : What are the issues and challenges in conducting the supply chain activities during the global pandemic? Supply management strategy
What is the maximum price per motor : What is the maximum price per motor that this company should be willing to pay to purchase the vacuum motors from the outside supplier

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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