Shoreline sells a piece of equipment to a corporate customer for $500,000. The cost of the equipment to Shoreline is$375,000. The terms of the sale call for the customer to make equal annual payments over the next three years, with the firstpayment due 1 year from now. APR is 9%. Variable consideration is already taken into account. Use the following tables tohelp you amortize and determine revenue and interest on the contract.Under the Installment method, how much gross profit will Shoreline recognize in Year 1? (to the nearest dollar)$0$45,000O $38,131$97,774

First, we need to determine the annual payment by inputting the following information in a financial…

Answered: Under the Installment method, how much…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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FOLLOWING QUESTIONS: 1. Consider that the number of periods and the amount of equal installment every year is the same with the given yet the prevailing market interest rate is 10%, how much would be the present value at 01/01/2020? A.973,684 B.1,088,815 C.1,217,105 D. 1,241,910 2. How much is the interest expense on December 31, 2020? A. 91,121 B. 108,143 C. 123,342 D. 136,913 3. How much is the interest expense on December 31, 2021? A. 108,143 B. 123,342 C. 136,913 D. 250,000 4. How much is the Present value at December 31, 2022? A. 600,459 B. 759,339 C. 901,195 D. 1,027,853 5. How many periods or equal installments to pay the Note Payable? A. 5 B. 6 C. 7 D. 8 6. How much is the annual installments? A. 200,000 B. 225,000 C. 250,000 D. 260,000 7. On 12/31/2020, the CURRENT PORTION of the Note Payable would be? A. 113,087 B. 126,658 C. 141,857 D. 158,879 PLEASE PROVIDE SOLUTIONS EVERY ANSWERS. THANK YOU!
What is the present value of a $222 perpetuity discounted back to the present at 14.84 percent? The answer should be calculated to decimal places.
What is the present value of receiving $2,500 at the end of each year for 5 years, assuming 7% interest compounded annually? Please ideentify which table you used.
Assuming a 360-day year, when a $11,200, 90-day, 5% interest-bearing note payable matures, the total payment will be Oa. $560 Ob. $140 Oc. $11,760 Od. $11,340 0 0 0 0
In the Du Pont method of analysis the two key drivers of return on equity are: a) Profit margin and return on assets b) Return on assets and the financing plan c) Profit margin and the financing plan In trying to measure a company's effectiveness in earning an adequate return on sales we would use which groups of ratios? a) Profitability ratios b) Asset utilization ratios c) Liquidity ratios
What is the present value of a $169 perpetuity discounted back to the present at 4.00%?
Which one of the following has the highest effective annual rate?A. 6 percent compounded monthly.B. 6 percent compounded quarterly.C. 6 percent compounded semiannually
Ee 278.
What is the future value on December 31, Year 5, of a deposit of $25,000 made on January 1, Year 2, assuming interest of 12% compounded semiannually?
The following table presents a series of income and expenses. Assume an interest rate of 5% per year. Years Income (LE) Expenses (LE) -71000 1-6 15000 -12000 7-9 37000 -18500 10-16 65100 -21700 Find the equivalent present value Find the equivalent value in year 6 Find the equivalent value in year 9 Find the equivalent value in year 16
A lender lends $10000 which is to be repaid in annual payments of $2100 for 6 years. Which of the following shows the timeline of the loan from the lenders perspective?
Perpetuity

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