On January 1, 2011, Li Company Purchased Equipment from Keiko

question 28

Multiple Choice

On January 1, 2011, Li Company purchased equipment from Keiko Distributors.There was no established market price for the equipment which has a 10 year life and no salvage value Li gave Keiko a HK$200,000 zero-interest-bearing note payable in 5 equal annual installments of HK$40,000, with the first payment due December 31, 2011.The prevailing rate of interest for a note of this type is 9%.The present value of the note at 9% was HK$144,200.Assuming that Li uses the straight-line method of depreciation, what amounts will be reported on the company's 2011 income statement for interest expense and depreciation expense for the note and equipment?

• A)HK$0; HK$20,000
• B)HK$18,000; HK$20,000
• C)HK$12,978; HK$14,420
• D)HK$14,420; HK$28,840

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Definitions:

Traumatized Employees

Workers who have experienced distressing events that negatively affect their mental health and work performance, necessitating supportive interventions.

Authority Figures

Individuals in a position of power who are recognized for their ability to influence or command others, often within organizational or institutional settings.

Junior Employees

Employees who are in the early stages of their career paths and typically hold lower-level or entry positions within an organization.

Positive Stress

Also known as eustress, it refers to stress that has beneficial effects on one's health, motivation, performance, and emotional well-being.