On December 31, 1999, Key Co. received two $10,000 noninterest-bearing notes from customers in exchange for services rendered. The note from Alpha Co., which is due in nine months, was made under customary trade terms, but the note from Omega Co., which is due in two years, was not. The market interest rate for both notes at the date of issuance is 8%. The present value of $1 due in nine months at 8% is 0.944. The present value of $1 due in two years at 8% is 0.857. At what amounts should these two notes receivable be reported in Key's December 31, 1999, balance sheet?

a. $ 9,440 $ 8,570

b. $10,000 $ 8,570

c. $ 9,440 $10,000

d. $10,000 $10,000

b. $10,000 $ 8,570

Explanation:

The shirt term note will be reported for his face value as the customary term stand for a lack of commercial substance The note isn't accepted to gain interest as it is for a very-short term (less than 90 days)

In the other hand, the 9 months note does have a commercial substance therefore, it has implied interest charged into it.

nominal x pv favor = PV

10,000 x 0.857 = $8,570

This makes option B correct.

bd = 9 cm

step-by-step explanation:

in a 30°-60°-90° triangle, the ratio of side lengths is 1 : √3 : 2. that is, the longest side (hypotenuse) is twice the length of the shortest side.

all of the triangles in your geometry are 30°-60°-90° triangles. ac is the hypotenuse of δacd, and the short side of δabc.

the short side ad of δacd will be half the length of ac, so 3 cm. the hypotenuse ab of δabc will be twice the length of ac, so 12 cm. segment bd is the difference of the lengths ab and ad, so is

bd = ab -ad

bd = 12 cm - 3 cm = 9 cm

comment on side length ratios

you can figure the ratios of side lengths in a 30°-60°-90° triangle by considering the trig ratios of the angles. or you can figure the length of the altitude of an equilateral triangle of side length 2 using the pythagorean theorem.

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