Sung Corporation issued a 5-year, $100,000, zero-interest-bearing note to Red Company on January 1,2025 , and received cash of $43,711. The implicit interest rate is 18%. What amount will Sung Corporation's liabilities increase as a result of the transaction with Red Company on January 1, 2025? Your Answer: Answer Question 6 (1 point) Auto Inc. sells and finances used cars. It offers its customer, Frodo, the following terms for a used Jeep. Quarterly payments of $1,500 for the next three ( 3 ) years Final payment at the end of three years of $6,000. Frodo believes he could get a bank loan on this Jeep at an interest rate of 8%. What is the present value of thle Jeep to Frodo, using the bank rate? Your Answer: Company X provides Company Z with a piece of equipment worth $100,000 on April 1, 2027. In exchange, Company Z issues Company X a promissory note in the amount of $120,000, due on March 31,2030. Since no cash is exchanged, neither Company X or Company Z recognize an economic event in their general ledger. Rather, the matter is disclosed, if considered material. 1) True 2) False Measuring using time value of money concepts Question 4 ( 1 point) WM Corporation issues $800,000 of 7% bonds, due in 10 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Both the contract and market rate of interest are stated in annual terms. Compute the issue price of the bonds. Your