Use the Information to Answer the Following Question(s)

question 47

Multiple Choice

Use the information to answer the following question(s) .
Jackson Automotive Inc. of California agrees to sell specialized automotive parts to Hidatsi of Korea. Because the two companies have never done business with each other, Jackson requires a banker's acceptance as payment for the $1,000,000 order. The banker's acceptance carries a 1.4% commission per annum and payment is to be received in 6 months. If Jackson Inc. chooses to discount or sell the bankers acceptance to its bank, the discount rate is 1.00% per annum.
-Refer to Instruction 15.1. What is the total Jackson Automotive can expect to receive if the firm takes payment today?

• A) $993,000
• B) $995,000
• C) $988,000
• D) $996,000

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Definitions:

Pre-1978 Works

Creative works created before 1978, which have specific considerations under copyright law regarding protection and public domain.

Assignment

The transfer of rights, property, or responsibilities from one party (the assignor) to another (the assignee).

Patentee

A patentee is an individual or legal entity who holds the ownership rights of a patent, granted by the government, for an invention, providing exclusivity on its use, manufacture, and sale.

Reasonable Royalty

A payment determined by a court to be a fair compensation for the use of patented technology or work.