A is corrent. Taylored will receive the value of the receivables ($200,000), reduced by $10,000 for the amount of the holdback ($200,000 x .05), $6,000 withheld as fee income ($200,000 x .03), and $3,370 withheld as interest expense ($200,000 x .15 x 41/365). Therefore the correct answer is $180,630 ($200,000 – $6,000 – $3,370 – $10,000).
B is incorrect. Taylored will receive the value of the receivables ($200,000), reduced by $10,000 for the amount of the holdback ($200,000 × .05), $6,000 withheld as fee income ($200,000 × .03), and $3,370 withheld as interest expense ($200,000 × .15 × 41/365). Therefore the correct answer is $180,630 ($200,000 – $6,000 – $3,370 – $10,000).
B is incorrect. Taylored will receive the value of the receivables ($200,000), reduced by $10,000 for the amount of the holdback ($200,000 × .05), $6,000 withheld as fee income ($200,000 × .03), and $3,370 withheld as interest expense ($200,000 × .15 × 41/365). Therefore the correct answer is $180,630 ($200,000 – $6,000 – $3,370 – $10,000).
D is incorrect. Taylored will receive the value of the receivables ($200,000), reduced by $10,000 for the amount of the holdback ($200,000 × .05), $6,000 withheld as fee income ($200,000 × .03), and $3,370 withheld as interest expense ($200,000 × .15 × 41/365). Therefore the correct answer is $180,630 ($200,000 – $6,000 – $3,370 – $10,000).
|
