Palantir Corp. sells specialized equipment to the healthcare industry. Palantir pays its sales agents a salary plus
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1. Determine the transaction price of the Osgilith MRI machines, and discuss how Palantir would account for the sales commission.
2. Discuss whether the delayed payment contract contains a significant financing component.
3. Prepare the journal entries for 2017 for the Osgilith MRI machines sold by Palantir to customers who elect the delayed payment option. Assume that Palantir determines that an appropriate annual discount rate for the transaction is 14%.
4. Prepare the 2017 journal entries that Palantir would make for the 10 Osgilith MRI machines that are sold if customers elect to pay at delivery.
Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
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Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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