Question
22. Company Z took out a construction-specific 10%, 4-year note of $400,000. They also had existing debt. The first is a 5%, 10-year bond of
22.
Company Z took out a construction-specific 10%, 4-year note of $400,000. They also had existing debt. The first is a 5%, 10-year bond of $1,000,000. The second is a 6%, 6-year note of $700,000. Compute the weighted-average interest rate the company needs to use in the computation of avoidable interest.
Group of answer choices
5.41%
5.5%
10%
6.33%
23.
Company X exchanged used equipment for a new one. The exchange has commercial substance. The used equipment had a carrying value of $15,000 and a fair value of $16,000. The new equipment has a listing price of $32,000. There was also a trade-in allowance of $5,000. At what cost will Company X record the new equipment at in their books?
Group of answer choices
$42,000
$17,000
$43,000
$32,000
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