Answer:
$200,000
Explanation:
The computation of the amount of pension expense is shown below:
= Service cost + interest cost - expected return + amortization + actuarial gain
= $120,000 + $2,500,000 × 6% - $2,000,000 × 8% + $40,000 + $50,000
= $120,000 + $150,000 - $160,000 + $40,000 + $50,000
= $200,000
Hence, the amount of pension expense is $200,000 and the same is to be considered
<span>What are notes or accounts receivable that result from sales transactions often called? Trade receivables.
A trade receivable is the amount billed to a customer when another company delivers olds or services to them for business use. They are documented in accounts receivable and given as an invoice for the customer to pay the delivering party.
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Answer:
Explanation:
According to the rule of cost minimization, a firm should should employ that quantity f labor and capital for which the marginal rate of technical substitution between capital and labor (MRTSkl) equals the wage rental ratio (w/r). Hence, the cost minimization rules becomes:
(MRTSkl) = w/r
MPl / MPk = w / r
MPl / w = MPk / r
In the case given, substitute the values of the variables and find that
MPl / w = MPk / r
60 / 12 < 45 / 8
5 < 5.625
Since the ratio is not equal, the firm is not using the optimum mix of inputs. On last dollar spent basis, capital is a better deal than labor, and the firm should use less labor and increase the amount of capital in order to minimize costs.
Answer:
In six years the investment will be worth $4421
Explanation:
The investment of $1500 will receive interest payment at 12% p.a. The interest payments are like an annuity as the amount is fixed and is paid after equal intervals and for a definite period i.e. 6 periods.
To calculate the worth of investment 6 years from now, we need to calculate the future value of both the principal and interest annuity after 6 years.
The formula for future value of principal is = PV * (1+r)^t
Future value of principal = 1500 * (1+0.12)^6 = $2960.73
The formula for future value of annuity is given is:
FV of ordinary annuity = PMT * [ ((1+i)^t - 1) / i]
Where,PMT is the periodic interest payment. The interest payment is = 1500 * 0.12 = $180 per year
Future value of annuity = 180* [ ((1+0.12)^6 - 1) / 0.12]
Future value of annuity = $1460.73
The total value of investment = 2960.73 + 1460.73 = $4421.46 rounded off to $4421
Answer:
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