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Vladimir [108]
3 years ago
13

The Jenkins Corporation has purchased an executive jet. The company has agreed to pay $200,000 per year for the next 10 years an

d an additional $1,000,000 at the end of the 10th year. The seller of the jet is charging 6% annual interest.
Business
1 answer:
sdas [7]3 years ago
4 0

Answer:

Liability will be $2,030,412

Explanation:

We need to calculate the present value of future cash flows in order to determine the liability value.

Liability to be recored = PV of $200,000 payment for 10 years at 6% + PV of $1,000,000 at the end of year 10 at 6%

As we know the payment of $200,000 for 10 years is the annuity payment.

Liability to be recored = $200,000 x ( 1 - ( 1 + 6% )^-10 /6% + ( $1,000,000 x ( 1 + 6% )^-10

Liability to be recored = $1,472,017.41 + $558,394.78 = $2,030,412.18

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Brandon needs to compare his salary to other employees of the company, he needs to pay special attention if:

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3 years ago
Why would a sole proprietorship or partnership need to submit a DBA form for the company?
Feliz [49]
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7 0
3 years ago
Read 2 more answers
g An equity issue sold to the firm's existing stockholders is called a Group of answer choices private placement Rights offer ge
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Answer:

rights offer.

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rights offer in equity can be regarded as invitation given to shareholders that are still existing in the firm so that they can purchase new shares, which is additional shares in the firm at a specific price which is usually at a particular time usually like 16 to 30 days. It should be noted that An equity issue sold to the firm's existing stockholders is called a rights offer

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On January 1, 2014, Borstad Company purchased equipment for $1,180,000. It is depreciating the equipment over 25 years using the
bezimeni [28]

Answer:

Explanation:

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Useful life - 25

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B) Annual cash flow - 400,000

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Net cash inflow= 105,000

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Impairment loss = $375,198    

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2.) Debit impairment loss - $375,198

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4 0
2 years ago
Both the federal government and the state governments share the power to
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