Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. sheephead company sells land with a book value of

Sheephead Company sells land with a book value of $175,000 to Drum Corp. in exchange...

60.1K

Verified Solution

Question

Accounting

Sheephead Company sells land with a book value of $175,000 to Drum Corp. in exchange for a $280,000 zero-interest-bearing note payable in 3 years. The market rate of interest for a transaction of this nature for Drum is 8%. What is the amount of the notes receivable less the unamortized discount at the time of the sale rounded to the nearest dollar? The present value of 1 at 8% for 3 years is .7938 and the present value of an ordinary annuity of 1 at 8% for 3 years is 2.5771.

a.$280,000

b.$450,993

c.$222,264

d.$138,915

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

Geometry
1.2K views

The graph below represents the logarithmic function y log x 1 02 Select one True...

Finance
1.2K views

Home Depot has been presented with an investment opportunity that will yield end-of-year cash flows of...

Basic Math
1.2K views

Solve for? Y(s), the Laplace transform of the solution? y(t) to the initial value problem below. y"-6y'+9y=cos...

Biology
1.2K views

How were core promoter elements identified? How would you do this in a new organ

Physics
1.2K views

A string of total mass 3.00×10-2kg is stretched to a length of 4.9m by applying a...

Biology
1.2K views

I ve found a little remedy To ease the life we live And make each...

Physics
1.2K views

7 If a charged spherical conductor of radius 10 cm has potential V at a...

Physics
1.2K views

A 4 3 m long simple pendulum oscillates with a period of 4 4 s...

Algebra
1.2K views

Question 4 of 14 Step 1 of 1 Find the y intercept and x intercept...

Accounting
1.2K views

On January 1, 2024, Alcatraz Company purchases a...

Accounting
1.2K views

On 1/1/2016 AY Company purchased equipment for $37,000 and estimated the state for 5 years...

Accounting
1.2K views

i need help with this asap please ...