Answer:
The interest rate implicit in this agreement is 1%
Explanation:
Present Value = $131,300
n = 9
i = ?
Annuity Payment = $15,328
Use the following formula to calculate the interest rate
PV of Annuity payment = Annuity Payment x ( 1 - ( 1 + r )^-n / r
$131,300 = $15,328 x ( 1 - ( 1 + r )^-9 / r
$131,300 / $15,328 = ( 1 - ( 1 + r )^-9 / r
8.5660 = ( 1 - ( 1 + r )^-9 / r
using Annuity Table the 8.5662 annuity factor for 9 payments shows under 1% interest rate.
So, the answer is 1%
Answer:For Year 1
= $549
, For year 2=$183
Explanation:
Interest = Principal x Rate x Time
( Period)
For Year 1
Interest = P x R x T
= $12,200 x 6% x 9 / 12 ( Period from April to December
= $549
For year 2
Interest = P x R x T
= $12,200 x 6% x 3 / 12 ( Period from Jan of year 2 to April 1 st of year 2 since Ist year has been covered)
=$183
Answer:
Moon light Bay Resorts would report in the balance sheet December 31, 2021 ; non current deferred tax asset of $102 million and non current deferred tax liability of $208 million .
Explanation:
From the above question, we are to determine if Moon Light Bay Resorts should report as assets (Current or non current) or liabilities (Current or non current) in its balance sheet as at 31st December, 2021.
The items are also classified in the balance sheet as seen below;
Total deferred tax liability ($128 million + $80 million) = $208 million
(Deferred tax liabilities related to both current or non current assets)
Total deferred tax asset ($62 million + $40 million) = $102 million
The net deferred tax liability = $106 million ($200 million - $102 million)
Answer:
A. 2 to 5 percent of sales
Explanation:
According to the text, management contracts usually stipulate that a fee of 2 to 5 percent of sales be paid to the firm providing the management expertise.
