To complete the above question, please see below:
Sub-Prime Loan Company is thinking of opening a new office, and the key data are shown below. The company owns the building that would be used, and it could sell it for $100,000 after taxes if it decides not to open the new office. The equipment for the project would be depreciated by the straight-line method over the project's 3-year life, after which it would be worth nothing and thus it would have a zero salvage value. No change in net operating working capital would be required, and revenues and other operating costs would be constant over the project's 3-year life. What is the project's NPV? (Hint: Cash flows are constant in Years 1-3.)
<span>WACC 10.0% </span>
<span>Opportunity cost $100,000 </span>
<span>Net equipment cost (depreciable basis) $65,000 </span>
<span>Straight-line depreciation rate for equipment 33.333% </span>
<span>Annual sales revenues $123,000 </span>
<span>Annual operating costs (excl. depreciation) $25,000 </span>
<span>Tax rate 35%
</span>
The answer is <span>12,271</span>
Answer:
Match the invoice with the PO.
Record the transaction in the system.
Post the transaction to a ledger
Generate unadjusted Trial balance
Prepare adjusted Trial Balance.
Issue Financial statements
Closing entries
Post closing Trial balance.
Explanation:
The accounting procedure is followed to record any transaction of the business. The transaction are recorded in the system and then these transactions are posted into ledger which forms the trial balance and then financial statements are prepared.
Answer:
I'm thinking C
Explanation:
This seems really written in a smart aleck way. It could be D also though.
Answer:
B The payment will not result in the employing firm being banned from doing municipal securities business with State B because it was made based on a personal relationship.
Explanation:
The rule of de minimis applies to persons making donations to candidates vying for elective positions. $250 de minimis is applicable to a person who will vote for a candidate in an election. If a person will not vote for the candidate, the de minimis is $150.
In this case, the MFP will not be voting for the candidate. She is allowed to donate only $150. Any excess will be refunded. However, since the MFP is making the donation on his personal capacity, the firm as a separate entity will not be penalized for what the MFP does with her money. It is likely that the firm does not even do contracts with the municipality. However, they are not based in the same area.
Answer:
Net Income for the Period is $41,018.
Explanation:
Emery Mining Inc.
Statement of Profit or Loss
Revenue $150,000
Operating Costs (75,500)
Depreciation (10,200)
Earnings Before Interest and Tax $64,300
Interest Expense (16,500*7.25%) (1,196)
Earnings Before Tax $63,104
Tax (35%) (22,086)
Earnings After Tax OR Net Income $41,018
