Find what is the realized gross profit for the year ended

Assignment Help Accounting Basics
Reference no: EM132594266

Question 1: 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 2.4. 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: EM132594266

Questions Cloud

Discuss safety hazards observed in the client home : Discuss the safety hazards observed in the client's home. Describe any nursing actions you would take to promote safety.
Calculate the basic earnings per share : Calculate the basic earnings per share - At December 31, 2019 and 2020, Danish Corp. had 100,000 common shares and 10,000
Submit a writing project on personal theory of leadership : In this assignment you will submit a writing project (LRC) or deliver a presentation to your instructor. It will focus on your personal theory of leadership
How demonstrate the profit : Determine the profit for 2020.A contractor enters into a construction contract on January 1, 2019. The contractor agrees to a fixed price of P9,000 to build
Find what is the realized gross profit for the year ended : Find what is the realized gross profit for the year ended December 31, 2015, If the collection of the note is not reasonably assured
Corporal punishment as school policy : In Ingram v. Wright (1977), the U. S. Supreme Court ruled that states may authorize the use of corporal punishment as school policy.
Why could the total sales income within the profit : The sales by customer summary report and the total sales income within the profit & loss report do not agree. why could this be?
Find how much is the net income for year ended november : On August 31, 2016 Daddy Co entered into a franchise agreement with Mommy Co. How much is the net income for its year ended November 30, 2016?
Women''s work experience through personal narrative : Think about how you would describe women's work experience based on your own personal, family, and/or social experience.

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