Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 1. lansing company acquires a patent on january 1,

1. Lansing Company acquires a patent on January 1, Year 1, in exchange for a...

50.1K

Verified Solution

Question

Accounting

1. Lansing Company acquires a patent on January 1, Year 1, in exchange for a 3 year noninterest-bearing note of $120,000. There was no established exchange price for the patent and the note has no ready market. The prevailing rate of interest for a note of this type is 8% at the date of the exchange. The imputed interest rate is the prevailing interest rate of 8% The present value interest factor for an amount in 3 years discounted at 8% is 0.79383. What is the amount of the debit to Interest Expense on December 31, Year 3?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Algebra
1.2K views

You have 6 different colored balloons. In how many distinct ways can the balloons be...

Statistics
1.2K views

A professional astrologer has prepared horoscopes of 83 adults. Each adult was shown three horoscopes, one of...

Statistics
1.2K views

Let Y1, ..., Yn be a random sample with the pdf: f(y;θ)= θ(1-y)^(θ-1) with θ>0 and 0

Physics
1.2K views

0 i A block of mass 3 kg is pushed against a rough vertical wall...

Geometry
1.2K views

When graphing the polar equation r 4 sin 60 as approaches from 0 the radius...

Statistics
1.2K views

Which of the following statements about the p value is true O A very small...

Statistics
1.2K views

Suppose the manufacturer states that a bag of candies should have the following distribution of...

Accounting
1.2K views

Lansing Company's current-year income statement and selected balance sheet data at December 31 of the...

Accounting
1.2K views

I am missing an account for this jounral entry and, can not get the numbers...

Accounting
1.2K views

What is the maximum amount of eligible home equity indebtedness on which interest is fully...

Accounting
1.2K views

Brockney Incorporated bases its manufacturing overhead budget on budgeted direct labor-hours. The variable overhead rate...

Accounting
1.2K views

Accounting for Business Combination - Intercompany