Entertainment; actors, singers, etc.
Answer:
d. $74,749.60 ( depreciation allowance @ 8.92% )
Explanation:
Under Modified Accelerated Cost Recovery System the Office furniture and fixtures, agricultural machinery and equipment, any other property not associated with another class is classified as 7-years property.
These assets are depreciated as follows:
Year Percentage Depreciate
1 14.29%
2 24.49%
3 17.49%
4 12.49%
5 8.93%
6 8.92%
7 8.93%
8 4.46%
In the Sixth year depreciation will be charged by 8.92%.
Asset Value = $838,000
Depreciation Allowance in 6th year = $838,000 x 8.92%
Depreciation Allowance in 6th year = $74749.60
*Option for the given Mcqs are missing and written as follows:
Select one:
a. $80,411.60
b. $74,833.40
c. $89,108.00
d. $74,749.60
e. $89,327.08
Answer:
Present Value of Annuity is $1,263,487
Explanation:
A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity.
Formula for Present value of annuity is as follow
PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]
Where
P = Annual payment = $91,000
r = rate of return = 5.15%
n = number of years = 25 years
PV of annuity = $91,000 x [ ( 1- ( 1+ 0.0515 )^-25 ) / 0.0515 ]
PV of Annuity = $1,263,487
Answer:
B. =PV(.06,10,0,10000)
Explanation:
In MS Excel the formula of Present value re is as "=PV( rate, nper, pmt, [fv] )".
PV = Present value
rate = Interest rate= 6% = 0.06
nper = number of periods = 10
pmt = payment made each period = 0 in this scenario
fv = future value = 10,000
So, according to the formula the correct sequence is =PV(.06,10,0,10000)
which is correctly mentioned in option B.