Answer: The correct answer is e). 3.67%
Explanation: An ordinary annuity is a series of payments made at the end of each period.
The formula for ordinary annuity is PV = PMT × ((1 - (1 + r) ^ -n)/ r)
Where; PMT = the periodic cash payment; r = the interest rate per period; n = the total number of periods and PV = present value.
Therefore; 3500000 = 250000×((1-(1+r)^-20)/r
This will give the rate as 3.67%
Answer:
E) The net capital gain is composed of $1,000 25% gain and $6,000 0%/15%/20% gain.
Explanation:
Calculation to determine what the net capital gain is composed of
Based on the information information given the amount of $6,000 STCL will have to offsets the $5,000 28% gain which is represent the highest tax rate gain while -$1,000 of 25% gain which is the amount that remain as loss will as well offsets the next highest tax rate gain.
Hence
Net capital gain= $6,000 STCL - $5,000 28% gain
Net capital gain= - $1,000 of 25% gain
Therefore the net capital gain is composed of
$1,000 25% gain and $6,000 0%/15%/20% gain.
Answer:
Company X
Explanation:
It seems company X made more purchase for PPE
<u>Investing activities refers to the purchase of long-term assets or investment</u>
Considering Company X used 200,000 cash for investing activities
while Company Y used 100,000 cash for investment activities.
We can assume Company X made more purchase of PPE
However, company Y could made purchase without cash (issued of shares, or signing a note) Which will not use cash.
Answer:
Dr. Depreciation Expense 40,000
Cr. Accumulated Depreciation 40,000
Explanation:
Annual depreciation charge=cost-salvage value/useful life
cost is $1,000,000
salvage value is $200,000
useful life is 20 years
annual depreciation charge=($1,000,000-$200,000)/20=$40,000
every year end the depreciation expense account would debited with $40,000 while the accumulated depreciation would be credited with same amount.
The correct option is the last option,Dr depreciation expense $40,000 and Cr accumulated depreciation $40,000.
At the point there is no point posting directly into the asset account since the accumulated depreciation account is an offsetting account against the asset account in the balance sheet
Answer:
False
Explanation:
Conditional formatting is a special feature in excel spreadsheets that allow the application of specific modification to cells that meet certain criteria.
It is most commonly used to highlight color, emphasize text or heading, and differentiate data from information stored in a spreadsheet.
