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Mary Smith is seeking financing for her new business venture, the development of a local ski hill. She has found two possible sources of financing:
Mary Smith is seeking financing for her new business venture, the development of a local ski hill. She has found two possible sources of
financing: a mortgage payable and a note payable. She can borrow $ on January from either, but the repayment
terms differ.
Mortgage payable details: $ mortgage with an annual interest rate of The loan is repayable over years in annual
installments of $ principal and interest, due each December The first payment is due December and the last on December
Longterm note details: $year note with an annual interest rate of Annual interest is due each December
The principal is due January
Show the balance sheet presentation for each option assumed in part a at December
Part a answer:
Interest Expense for the year ending Dec. :
Mortgage Payable: $
Long Term Note Payable: $
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