Answer:
The answer is $12,297.
Explanation:
Denote x is the minimum amount of after-tax annual savings (including depreciation effects) needed to make the investment yield a 12% return.
As required in the question, at $X annual after-tax saving, the net present value of the project discounted at the required return 12% will be equal to 0. So, we have:
- Net initial investment + Present value of cash inflow from asset disposal in 5-year + Present value of 5 after-tax annual savings = 0 <=> -50,000 + 10,000 x 0.567 + X x 3.605 = 0 <=> 3.605X = 44,330 <=> X = $12,297 (rounded to the nearest whole dollar).
Thus, the answer is $12,297.
Answer: historical exchange rate
Explanation:
The temporal method is also referred to as the historical method. Under this method, the currency of a foreign subsidiary is being converted into the currency of the parent company.
It should be noted that under the temporal method, the income statement items which relate to newly recognized assets and liabilities generally are remeasured using the historical exchange rate.
Answer and Explanation:
A due on sale clause is simply a stipulation in the mortagage agreement that the
"borrower if he wants to sell the property to some other person, first of all he (borrower) shall repay the entire outstanding mortagage amount and then only it is possible to sell the property which is secured under Mortagage agreement.
Hence in essence, the borrower must repay before selling it to some other person which will result in paying the sale proceeds of house to the lender first and the Borrower again has to take loan sometimes from the same lender.
Hence it is imperative that the mortagage obligation cannot be transferred to any other person. That is any subsequent buyer cannot ASSUME the mortagage. Therefore due on sale
Clause prevents assuming of mortagages.
Answer:
A. Time series
B. Cross Sectional
C. Panel
D. Cross Sectional
Explanation:
(a) Quarterly data on the level of U.S. new housing construction from 2000 to 2018, Time series data, numerical
(b) Data on number of doctor visits in 2018 for a sample of 192 individuals. Cross sectional data, numerical
(c) Data on annual health expenditures for each U.S. state from 2000 to 2018. Panel Data, Numerical
(d) Data on usual mode of transportation used to commute to work for a sample of 151 individuals. Categorical
Answer: See explanation
Explanation:
The amount of depreciation for the month of January using the straight line depreciation method will be:
= (Cost - Salvage Value) / Life of Assets / 12 Months
= ($64,800 - $0) / 6 Years / 12 Months
= $10800/12
= $900 per month
The adjusting entry for depreciation on January 31 will be:
Dr Depreciation Expense - Computer Equipment $900
Cr Accumulated Depreciation-Computer Equipment $900
(To record the depreciation expense)
