Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On January 1, 2020, SunBlush Technologies sold inventory costing $80,000 to Cantu Excavating. In return,SunBlush Technologies received a 4-year, 6% note with a face value
On January 1, 2020, SunBlush Technologies sold inventory costing $80,000 to Cantu Excavating. In return,SunBlush Technologies received a 4-year, 6% note with a face value of $110,000. Blended payments will bemade yearly on December 31, and will include principal and interest. The market rate of interest is 2%. SunBlushTechnologies has a December 31 year-end while Cantu Excavating's year-end is September 30. SunBlushTechnologies uses a perpetual inventory system. Please make sure your final answer(s) are accurate to the nearest whole number. a) Calculate the annual payments SunBlush Technologies will receive each year from Cantu Excavating. Use thestated rate of the note in your calculation
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started