Testions (d) and (e) below. Royce Inc. has a December 31 fiscal year-end date. GE Capital...

 

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Testions (d) and (e) below. Royce Inc. has a December 31 fiscal year-end date. GE Capital also has a December 31 fiscal year-end date. Royce Inc. borrowed $120,000 from GE Capital to purchase Equipment on February 1, 2016. No payments were made during 2016. Royce Inc. will repay the principal amount of $120,000 on February 1, 2020. Royce Inc. will also make interest payment only at the time of the principal repayment. The loan carries an annual interest rate of 15%. (d) With respect to the above loan agreement, what is the amount of non-current assets that should be reported on GE Capital's balance sheet for the year ended on December 31, 2017 Answer: Testions (d) and (e) below. Royce Inc. has a December 31 fiscal year-end date. GE Capital also has a December 31 fiscal year-end date. Royce Inc. borrowed $120,000 from GE Capital to purchase Equipment on February 1, 2016. No payments were made during 2016. Royce Inc. will repay the principal amount of $120,000 on February 1, 2020. Royce Inc. will also make interest payment only at the time of the principal repayment. The loan carries an annual interest rate of 15%. (d) With respect to the above loan agreement, what is the amount of non-current assets that should be reported on GE Capital's balance sheet for the year ended on December 31, 2017 Answer:

Answer rating: 100% (QA)

As per the loan agreement Royce Inc borrowed 120000 from GE Capital to purchas... View the full answer