On June 1, 2020, Bean LTD

question 11

Multiple Choice

On June 1, 2020, Bean LTD. provides a vendor with a $125,500 non-interest-bearing note due on June 1, 2023, in exchange for equipment with a list price of $118,100. At what amount will the equipment be recorded in the accounting records? The company's banker has suggested that an appropriate market rate is 6% per annum for loans that mature in one year or less and 9% for loans with longer maturities.

• A)$118,100
• B)$105,372
• C)$96,909
• D)$91,195

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Definitions:

Customer Satisfaction

The measure of how products and services supplied by a company meet or surpass customer expectation.

Satisfaction Guarantee

A promise or assurance given by a company that a customer will be pleased with a product or service, or a refund or replacement will be offered.

Strategic Point

A critical factor or position within a strategic plan that can significantly influence the success or failure of said plan.

Nonmonetary Costs

Costs associated with a purchase that are not financial, such as time spent, effort, and emotional stress.