On may 31, 20x5, fox co. gave owl co. a $400,000, 11% loan. fox paid owl proceeds of $388,000 after the deduction of a $12,000 nonrefundable loan origination fee. principal and interest are due in 5 annual installments, beginning may 31, 20x6. the repayments yield an effective interest rate of 11% at a present value of $400,000 and 12.4% at a present value of $388,000. what amount of income from this loan should fox report in its 20x5 income statement?

Schuepfer inc. bases its selling and administrative expense budget on budgeted unit sales. the sales budget shows 1,800 units are planned to be sold in march. the variable selling and administrative expense is $4.30 per unit. the budgeted fixed selling and administrative expense is $35,620 per month, which includes depreciation of $2,700 per month. the remainder of the fixed selling and administrative expense represents current cash flows. the cash disbursements for selling and administrative expenses on the march selling and administrative expense budget should be: