User Account

All Pages

How much total interest will Bonita pay on this payment plan

Assignment Help Accounting Basics
Reference no: EM132483109

Question - Bonita Industries maintains its accounting records using IFRS. The company purchases equipment with a price of $490000. The manufacturer has offered a payment plan that would allow Bonita to make 10 equal annual payments of $60412, with the first payment due one year after the purchase. How much total interest will Bonita pay on this payment plan?

a. $49000

b. $196000

c. $114120

d. $60412

Reference no: EM132483109

Questions Cloud

Discuss the trend based on feelings about art : Discuss this trend based on your own feelings about art and its changing place in society. Can still look at a famous painting without thinking
Compute the gross margin ratio : Compute the gross margin ratio (both with and without services revenue) and net profit margin ratio (round the percent to one decimal)
How did they get the amount of carrying amount of bonds : How did they get this amount of carrying amount of Bonds $425,853 and interest amount of interest expense $21293.Can you show how to compute those numbers?
How much would the capital structure shift change the co : Determine By how much would the capital structure shift change the Co's cost of equity? the finance manager of NN Co. estimate the
How much total interest will Bonita pay on this payment plan : The company purchases equipment with a price of $490000. How much total interest will Bonita pay on this payment plan
Determine the price of the bonds issued on February : Determine the price of the bonds issued on February. Prepare the journal entries by both firms to record all subsequent events
What is going on in the package-delivery industry : Set in April 2016, this case invites students to assess FedEx Corp.'s and United Parcel Service, Inc.'s (UPS's) financial performance.
What is the present value of the bond : A 11-year U.S. Treasury bond with a face value of $1,000 pays a coupon of 5.75% (2.875% of face value every six months). The reported yield to maturity is 5.4%
Which loan should ajax accept : Recompute the annual cost of interest.assuming Ajax ordinarily maintain $ 20000 at each bank n deposit that will serve as compensating balances.

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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