QUESTION 32 Jarrett is buying all the assets and assuming all the liabilities of Surie Corporation. The following information is available for Sure's at the date of the purchase Accounts Receivable 250.000 Accounts payable 150,000 Inventory 100,000 Note Payable 100,000 Land 300,000 Common Stock 100,000 Retained Earnings 300,000 The accounts receivable are worth $200,000, the inventory is worth $80,000 and the land is worth $500,000. The Accounts Payable are worth book value Additionally, the Note Payable debt is payable interest only at 10% per year for the next 5 years and then the principalis . The current interest rate for similar debitis 12%. Jarrett will pay $650 000 for Sure's. Approximately, how much of the purchase price wil l do to goodwill? O A 5 124,804 OB. 5120,000 OC. 5117,790 OD. Some other number which is not here E. $ 112,790 QUESTION 34 John is buying a motorhome. He has the following options: Option 1: Purchasing the motorhome for $62.880 from Honest Susie. Under this deal he would pay 10% down and making 60 equal monthly which would include interest at 6%. Not being complete sure of the trustworthiness of Susie, he called the bank and, indeed, 6% was the going rate on such purchases. Option 2: Dealing Dave has offered the bus of $75,000. Under this deal, he would pay no money down and annual interest payments of 2%. Then at the end of the fifth year, he would pay the $75,000. Option 3: Mostly Honest Bill would sell him the bus to $72,000. Under this deal he would put no money down and pay the 72,000 in 48 equal monthly payments that include interest at 3% Rank the deals in order of which is best for John O A. 1, 2, 3. B. 3, 2, 1. C. 3, 1,2 D.none of the listed choices E. 2, 1,3 QUESTION 35 If Malcom deposits $1,000 in a bank account that pays 4% compounded quarterly, how much will he have in 6 years? O A $1,390.12 OB. none of the listed choices OC. $1,942.05 O D.$ 1,787.57 O E $1,269.73 QUESTION 36 A 7-year, $1,000,000 zero coupon bond is priced to yield 8%. The amount the issuing company will receive when it is issued O A. $ 543,933.74 B. $1,000,000.00 OC. $ 583,490.40 D. none of the listed choices O E. $ 547,034.24
