Straight Industries Purchased a Large Piece of Equipment from Curvy

question 56

Multiple Choice

Straight Industries purchased a large piece of equipment from Curvy Company on January 1, 2016. Straight Industries signed a note, agreeing to pay Curvy Company $400,000 for the equipment on December 31, 2018. The market rate of interest for similar notes was 8%. The present value of $400,000 discounted at 8% for three years was $317,520. On January 1, 2016, Straight Industries recorded the purchase with a debit to equipment for $317,520 and a credit to notes payable for $317,520. How much is the 2017 interest expense, assuming that the December 31, 2016 adjusting entry was made?

• A)$27,434.
• B)$27,962.
• C)$32,000.
• D)$29,693.

Analyze factors influencing patterns of species diversity and distribution.

Describe the ecological impacts of human activities on climate and biodiversity.

Explain the processes that shape Earth’s climate zones and the distribution of biomes.

Recognize the importance of ecological scales and their interconnectedness.

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Definitions:

Purchasing Power

The worth of a currency represented by how much goods or services can be purchased with one unit of that currency.

Recognition Lag

The time delay between when an economic problem or shock occurs and when it is recognized or identified by policymakers.

Political Lag

The delay between a need for policy action being identified and the government implementing the response, often due to bureaucratic or political reasons.

Decision Lag

The time taken between identifying an economic issue and the implementation of policy to address it.