What is the realized gross profit for year ended december

Assignment Help Accounting Basics
Reference no: EM132594093

On January 2, 2015, Moon Co signed an agreement to operate as a franchise of Sun Co, for an initial franchise fee of 2,500,000 for 5 years. Of this amount, 500,000 was paid when the contract was signed and the balance payable in four equal annual payments beginning on December 30, 2015. Moon signed an interest-bearing note for the balance. Moon's rating indicated that it can borrow money at 25% for a loan of this type. Present value of an annuity of 1 for 4 periods at 25% is 2.

Question 1: Assume that additional indirect franchise cost of 68,000 was also incurred. If the collection of the note is not reasonably assured, what is the realized gross profit for the year ended December 31, 2015?

Reference no: EM132594093

Questions Cloud

A vital element of the project is virtualization : A vital element of the project is virtualization. What questions do you have about virtualization?
Calculate the amount of interest due at maturity : On April? 1, 2019, Barnes Services received a -9 month note for $13,000 at 9?%. Calculate the amount of interest due at maturity.?
Calculate the number of shoes that need to be sold : Lilly Inc. sells shoes for $134 each. Calculate the number of shoes that need to be sold every week to break even
Decided to change the last project : In light of covid, I have decided to change the last project of the semester to something new.
What is the realized gross profit for year ended december : On January 2, If the collection of the note is not reasonably assured, what is the realized gross profit for the year ended December 31, 2015?
Emergency preparedness guide for assisted living : Access the planning process as part of Emergency Preparedness Guide for an Assisted Living facility.
How to prepare a petty cash payments report for february : How to prepare a petty cash payments report for February with these categories: delivery expense, mileage expense, postage expense
What would be the net income per year : The capacity of her facility is 299,000 units. If sales were at 75% of the capacity and the variable costs decreased by 25%, what would be net income per year
What are the total liabilities of john tackle : What are the total liabilities of John's Tackle if the total assets are $142,000 and the equity is $39,000? Provide the calculation.

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.

  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!

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