21 - 25 Financial Accounting. Please answer all. Thank you very much.

21. On December 31, 2063, the SAGILE company sold industrial equipment worth $80 million to a regular and important customer. To secure the outcome of the transaction, the company required that the client sign a note receivable with the following characteristics:

Face value: $80,000,000

Maturity: 5 years

Nominal interest rate: 8%

Market interest rate: 9%

Calculate the issue price of this note receivable.

FV
N
I/Y
PMT
Answer

22. DE GROSBOIS INC. contracted to build two aircraft. The contract was signed with KIRKLAND AIRWAYS and contains the following information:  Signature: January 1, 2030.  End of contract: December 31, 2032.  Non-renegotiable selling price: $21,000,000.  Estimated planned costs: $20,000,000.

	2030	2031	2032	Total
Costs incurred during the year	6 000 000 $	17 000 000 $	1 000 000 $	24 000 000 $
Costs for completion of works	14 000 000 $	1 000 000 $	0
Amounts billed during the year	6 600 000 $	11 400 000 $	3 000 000 $	21 000 000 $
Receipts for the year	6 000 000 $	10 000 000 $	5 000 000 $	21 000 000 $

Considering that the fiscal year ends on December 31 and that DE GROSBOIS INC. uses the progress method, calculate the amount of annual turnover for the 2032 financial year with the client KIRKLAND AIRWAYS.

	Cumulative degree of advancement	Cumulative products	annual product
2030
2031
2032

23. Referring to the data in statement number 22 above, what is the balance of the "Invoicing of work in progress" account for the financial year ended December 31, 2032, after the closing of the accounts relating to this contract of construction? Answer #23: Invoicing of work in progress = 24. Give two ways of estimating the degree of completion in construction contracts. Answer #24: 1. 2.

25. In which case can a construction company use the percentage of completion method in accounting for its turnover? Answer #25: