Bosworth Corporation accepted a 5-year note receivable from Steelman Company on January 1, Year 1. The...

Bosworth Corporation accepted a 5-year note receivable from Steelman Company on January 1, Year 1. The maturity value of the note is $ 760,000. The note has a stated interest rate of 10%. However, the prevailing market interest rate is 12%. The note requires interest payments on June 30 and December 31. What is the present value of this note at inception ANSWER:$704, 063 ( I would like to know how to calculate)

2. Eagle Exporters purchased 80,000 of the 200,000 outstanding shares of Giant Distributors for $3,000,000. Eagle has significant influence over Giant and will account for this investment using the equity method. During the year, Giant declared dividends of $100,000 and reported Net Income of $780,000. What is the balance in the Investment in Giant account at year end? correct answer: $3, 272,000 ( I want to know how to calculate)

3. Cider Jewelers purchased 3,000,000 of the outstanding 10,000,000 shares of Angel & Associates. At the time of the acquisition, the book value of Angel's net assets equals their fair market value. Angel declared and paid dividends of $ 290 000 during the year. Which of the following is the correct journal entry for this transaction?

Expert Solution

ekkarill92 answered 1 year ago

Selkirk Company obtained a $30,000 note receivable from a customer on January 1, 2018. The note,...

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