Question
BMI Ltd. had arranged with the bank for a 6 month line of credit of $200,000 at prime plus 2%. Prime rate is 4%. The
BMI Ltd. had arranged with the bank for a 6 month line of credit of $200,000 at prime plus 2%. Prime rate is 4%. The bank charges commitment fee of 0.5% annually on any unused balance. BMI Ltd. ended up using only $160,000 for 4 months.
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Fundamental accounting principle
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st edition
1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587
