Note with Fair Value Not Equal to Cash Consideration

question 16

Essay

Note with fair value not equal to cash consideration
On January 1, 2020, Tanzania Corp. lent $50,000 to its CEO, interest-free. However, the loan is repayable in five instalments, each December 31, until paid. The market rate for similar loans (with similar credit risk) is 4%.
Instructions
a) Calculate the present value (fair value) of this loan (round to the nearest dollar).
b) Prepare the journal entry to record this transaction.

Calculate budgeted purchases based on sales, inventory requirements, and materials usage.

Differentiate between various types of budgets within a company's master budget.

Calculate and understand the dynamics of cash budgets, including beginning and ending cash balances.

Understand the calculations involved in budgeting direct labor costs based on production needs.

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Definitions:

Crawling

A developmental milestone in infants, typically occurring between 6 to 10 months, where they move on their hands and knees.

Babinski Reflex

A reflex action in infants, which is a sign of normal neurological function, where the big toe extends upward when the sole of the foot is stimulated.

Moro Reflex

An involuntary response seen in newborns, involving a startle reaction followed by a hugging motion.

Rooting Reflex

An innate reflex in newborns that causes them to turn their head toward a touch on their cheek, facilitating breastfeeding.