Your company is in need of quick cash to afford a project

Assignment Help Accounting Basics

Reference no: EM13569466

(A) Your company is in need of quick cash to afford a project opportunity, so the firm decides to factor $100,000 of its receivables without recourse instead of waiting for collections. Identify the authoritative guidance that provides the criteria for classifying the transfer of financial assets as a sale.

(B) Assume that the transfer qualifies as a sale, and the institution purchasing the receivables pays $90,000. $3,000 of the amount kept is for a fee and the rest will be remitted after collections are made. $5,000 is the fair value of the amount to be remitted at a later date (receivable).

(1) Compute the gain or loss on the transfer of the receivables

(2) Cite the authoritative guidance that supports your answer to (1).

Reference no: EM13569466

Questions Cloud

Xyz corp wants to expand its operation with a new metal : xyz corp. wants to expand its operation with a new metal bender. the bender is expected to have an purchase price of 10

Another machine with a book value of 500 was scrapped and : the following information was provided by the treasurer of linime inc. for the year 2012cash sales for the year were

What is the value of a preferred stock that pays a 450 : what is the value of a preferred stock that pays a 4.50 dividend to an investor with a required rate of return of

The following information is available actual inputs for : the following information is available actual inputs for actual price each unit of output per unit of input direct

Your company is in need of quick cash to afford a project : a your company is in need of quick cash to afford a project opportunity so the firm decides to factor 100000 of its

Wine and roses inc offers a 80 percent coupon bond with : wine and roses inc. offers a 8.0 percent coupon bond with semiannual payments and a yield to maturity of 8.78 percent.

Argonaut enterprises had 500000 shares of common stock : argonaut enterprises had 500000 shares of common stock outstanding on january 1. on june 1 argonaut issued an

A firm buys on terms of 28 net 45 days it does not take : a firm buys on terms of 28 net 45 days it does not take discounts and it actually pays after 58 days. what is the

What is the expected return of the following forecasted : what is the expected return of the following forecasted returns for xyz corp?what is the standard deviation of the

User Account

All Pages