Information on present value and future amount factors

Assignment Help Accounting Basics
Reference no: EM13871356

On January 1, 2010, the Pitt Company sold a patent to Chatham, Inc., which had a carrying value on Pitt's books of $10,000. Chatham gave Pitt a $60,000 non interest bearing note payable in five equal annual installments of $12,000, with the first payment due and paid on January 1, 2011. There was no established price for the patent, and the note has no ready market value. The prevailing rate of interest for a note of this type at January 1, 2010 is 12%. Information on present value and future amount factors is as follows: 

111_268-B-A-L (3109).png

Required:

Prepare a schedule showing the income or loss before income taxes (rounded to the nearest dollar) that Pitt should record for the years ended December 31, 2010 and 2011, as a result of the preceding facts. Show supporting computations in goodform.

Reference no: EM13871356

Questions Cloud

Address ethics issues in organization : Describe what they offer and how their services may have an effect (positive or negative) on your local government and/or school system - Do you think this would be an effective tool for administrators seeking to address ethics issues in their organ..
Calculate the force per unit length : Calculate the force per unit length exerted by the y > 0 half of the cylinder on the y
The user interface should look similar to the picture : Develop a VB program that keeps track of your daily exercise time. The user interface should look similar to the picture below. 1.       On Form1, each day's exercise time can be saved into a listbox. Type a number in the textbox, when the "Save" but..
Develop the most comprehensive and precise measures possible : Do you go ahead with the existing equipment, or do you buy the EMSI - develop the most comprehensive and precise measures possible
Information on present value and future amount factors : On January 1, 2010, the Pitt Company sold a patent to Chatham, Inc., which had a carrying value on Pitt's books of $10,000.
Develop a specific legal definition of genocide : Why is it important to develop a specific legal definition of genocide that would apply to all countries
Find the force per unit length on the wire : 1. A long wire parallel to the x axis carries a current of 6.5 A in the positive x direction. There is a uniform magnetic field B = 1.35 T j. Find the force per unit length on the wire.
Does a strike or lockout end a collective agreement : . Does a strike or lockout end a collective agreement? If so, does an employer have the ability to unilaterally impose terms and conditions of employment once strike or lockout action ends the collective agreement
Write about one of the amendments to the constitution : Write about one of the amendments to the constitution- pick one, why is it important to todays society? Why was it added to the constitution?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Willis corporation has beginning inventory 76000 purchases

willis corporation has beginning inventory 76000 purchases 487000 freight-in 15900 purchase returns 5400 purchase

  Describe the effect of each transaction on assets

describe the effect of each transaction on assets liabilities and owners equity. 1. incurred advertising expense on

  In addition include the tax benefits savings for the first

prepare a 500-750 word written response to the following in january 2010 salem corporation purchased 350000 of new

  Assignment: cost benefit analysis

Assignment: Cost Benefit Analysis  prepare a 5-page cost/benefit analysis of the Sarbanes-Oxley Act.

  What is the amount of overapplied

What is the amount of overapplied or underapplied overhead for the year - Hudson, Inc. has estimated total factory overhead costs

  In september bellfont expects to produce 100000 door

bellfont company produces door stoppers. august production costs are belowdoor stoppers

  The following information applies to the questions

the following information applies to the questions displayed below. park company reported the following march

  Great forks hospital reported net income for 2012 of 24

great forks hospital reported net income for 2012 of 2.4 million on total revenues of 30 million. depreciation expense

  Kinsey company had beginning inventory of 50000 ending

1 purchase discounts lost should be a. added to the merchandise inventory account to determine the cost of inventory on

  Bakers corporation has asked for an estimate on rebuilding

louise remanufacturing rebuilds spot welders for manufacturers. the following budgeted cost data for 2012 are available

  In a bank reconcilation there might be items which have

in a bank reconcilation there might be items which have been recorded by the company that have not yet been recorded by

  Non current assets-land and equipment

Paris had no liabilities. The fair values of Paris" assets were $2,500,000. Paris"s only non-current assets were land and equipment with fair values of $160,000 and $640,000, respectively. At what value will the equipment be recorded by Raphael?

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