During 20x5, estimated tax payments of $300,000 were charged to prepaid taxes. trey has not yet recorded income tax expense. there were no differences between financial statement and income tax income, and trey's tax rate is 30%. included in accounts receivable is $500,000 due from a customer. special terms granted to this customer require payment in equal semi-annual installments of $125,000 every april 1 and october 1. in trey's december 31, 20x5 balance sheet, what amount should be reported as total retained earnings?

Biochemical corp. requires $600,000 in financing over the next three years. the firm can borrow the funds for three years at 10.80 percent interest per year. the ceo decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. assume interest is paid in full at the end of each year. a)determine the total interest cost under each plan. a) long term fixed rate: b) short term fixed rate: b) which plan is less costly? a) long term fixed rate plan b) short term variable rate plan