Question: Use this information to answer this question, as well as those below it: ABC Auditor has agreed to perform an inventory count for XYZ on

 Use this information to answer this question, as well as those

Use this information to answer this question, as well as those below it: ABC Auditor has agreed to perform an inventory count for XYZ on 12/31/Y1, but will allow them to pay over time. Before they agree with the note terms, they are considering several options. XYZ 's normal borrowing rate is 6%. For each option determine service revenue at 12/31/Y1 and interest revenue at 12/31/Y3, and answer the additional questions below. The PV of an ordinary annuity table for . 5% is provided below. For all other factors use the PV tables in your book - do not round factors in your initial calculation. After you've used the factor, round all answers to whole dollars (including service revenue, interest revenue, and payments for each year in your calculation). Information specific to this question: ABC will require XYZ to pay a down payment of $8,000 at 12/31/Y1 and the remainder in the form of a $40,000 note, at 12% interest, due $12/31/Y6. Interest will be due semi-annually, Calculate: Service Revenue for 12/31/Y1:$ How much Interest Revenue was recorded year to date at 12/31/Y3 ?: $

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