On June 1,2012,ABC LTD

question 54

Multiple Choice

On June 1,2012,ABC LTD.provides a vendor with an $18,500 non-interest-bearing note due on July 1,2013 in exchange for furniture with a list price of $18,100.At what amount will the property be recorded in the accounting records? The company's banker has suggested that an appropriate market rate is 12% per annum for loans that mature in one year or less and 15% for loans with longer maturities.

• A)$16,087
• B)$16,518
• C)$18,100
• D)$18,500

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Definitions:

Soft Palate

The flexible part at the back of the roof of the mouth, distinguishing the back of the oral cavity from the nasopharynx.

Pharynx

A muscular tube that connects the mouth and nasal passages to the esophagus and larynx, serving both the respiratory and digestive systems.

Pulmonary Fibrosis

A lung disease characterized by damage and scarring of lung tissue, leading to severe breathing difficulties.

Emphysema

A long-term, progressive lung disease that primarily causes shortness of breath due to the over-inflation of the alveoli (air sacs in the lungs).