Problem
a) A company buyed 2000 units of food for $300 each. The selling price is $400 for each unit. There was 70 units in the end of the year. The selling price will be reduced by 20%. Determine the ending inventory of the food.
b) There is a four year zero interest note that has a face value of $600,000 and a present value of $400,000. Effective interest rate formula for the income is $30,000. Determine the difference in income if the straight-line interest rate formula is used.