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QUESTION Use this information to answer this question, as well as those below it: ABC Auditor has agreed to perform an inventory count for XYZ
QUESTION Use this information to answer this question, as well as those below it: ABC Auditor has agreed to perform an inventory count for XYZ on 12/31/Y1, but will allow them to pay over time. Before they agree with the note terms, they are considering several options. XYZ's normal borrowing rate is 6%. For each option determine service revenue at 12/31/Y1 and interest revenue at 12/31/Y3, and answer the additional questions below. The PV of an ordinary annuity table for .5% is provided below. For all other factors use the PV tables in your book - do not round factors in your initial calculation. After you've used the factor, r ound all answers to whole dollars (including service revenue, interest revenue, and payments for each year in your calculation) Period 36 48 60 0.5% 32.87102 42.58032 51.72556 Information specific to this question: ABC will require XYZ to pay a down payment of $10,000 at 12/31/Y1 and the remainder in the form of a $30,000 note, at 8% interest, due $12/31/Y6. Interest will be due semi-annually. Calculate: Service Revenue for 12/31/Y1: $ How much Interest Revenue was recorded year to date at 12/31/Y3?:$
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