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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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What would NOT be part of making a comparison?
Zielflug [23.3K]

The correct answer would be answer choice <u>C. determining the qualities.</u>

When it comes to comparing things you will always use the qualities of the person, place, or thing.

Hope this helps.

~Lexa

5 0
3 years ago
Larson Company on July 15 sells merchandise on account to Stuart Co. for $1,000, terms 2/10, n/30. On July 20 Stuart Co. returns
pickupchik [31]

Answer:

b. $588

Explanation:

Terms 2/10, n/30 means that 2% discount for the payment within 10 days and the full amount to be paid within 30 days.

When Larson Company sold merchandise, the following entry was made to recording revenue (sales) and the receivable:

Debit Receivable Account $1,000

Credit Revenue $1,000

On July 20 Stuart Co. returns merchandise, the entry is made to record the decreasing of Receivable Account:

Debit Revenue $400

Credit Receivable Account $400

The balance Receivable Account of Stuart Co. = $1000-$400 = $600

On July 24, Stuart Co. makes the payment, the sales discount was:

$600 x 2% = $12

The amount of cash received = $600-$12=$588

The following entry is made:

Debit Cash: $588

Debit Sales discount: $12

Credit Receivable Account $600

7 0
3 years ago
In 2021, Carson is claimed as a dependent on his parents' tax return. His parents report taxable income of $200,000 (married fil
serg [7]

Carson's tax liability for 2021 as a 23-year full-time student, who earns from the summer internship and part-time job and receives a qualified dividend is $645.

<h3>What is tax liability?</h3>

Tax liability refers to the amount that a taxpayer is obliged to pay.

The tax liability is a function of the taxpayer's taxable income, tax bracket, deductions, and applicable tax rate.

In this case, we have assumed a flat tax rate of 10% for both Carlson's earned income and the dividend income.

<h3>Data and Calculations:</h3>

Earned income = $14,000

Qualified Dividend income = $5,000

Adjusted taxable income = $6,450 ($19,000 - $12,550)

Tax liability = $645 ($6,450 x 10%)

Thus, Carson's tax liability for 2021 is $645.

Learn more about tax liabilities at brainly.com/question/7409145

4 0
2 years ago
The primary difference between variable costing and absorption costing is
IgorLugansk [536]

Answer:

The correct answer is letter "D": in absorption​ costing, fixed manufacturing overhead is a product cost.

Explanation:

Absorption costing or full costing includes all costs related to the production process like the fixed costs. Variable costing, on the other hand, only includes the variable costs from the production. Absorption costing incorporates allocating fixed overhead costs of each unit produced during a certain period.

4 0
3 years ago
A pure monopoly will find that marginal revenue _____.
natima [27]

Answer:

the answer is A

Explanation:

marginal revenue is revenue obtained from sale of extra unit of good,please email me on kennedychmb the domain is g  mail as i cannot type the fulll address here but thats the ID

5 0
3 years ago
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