Answer: $38,410,000
Explanation:
When recording investments in fixed assets, it is best to use the market value at the time.
The market value of the land will therefore be the relevant cost here.
Initial investment in fixed assets = Market value of land + Cost to build plant + Cost of grading
= 7,700,000 + 29,300,000 + 1,410,000
= $38,410,000
Answer and Explanation:
The computation is shown below:
We use the formula that is given below:
Invested amount = $1,000,000 present value
Present value = 1 ÷ (1 + rate of interest)^number of years
a.
The amount invested is
= $1,000,000 ÷ (1.1104)^45
= $8,983.07
b,
The amount invested is
= $1,000,000 ÷ (1.0552)^45
= $89,111.71
Answer:
a.contains debt financing
Explanation:
Company activities are sponsored through two sources namely;Equity and debt. Equity is the fund available to the business from the owners of the business while debt refers to fund from 3rd parties.
A company is said to be geared when it has some element of debt financing. This is the same as leverage. Hence Leverage implies that a company contains debt financing
Answer:
The amount that is deductible as interest expense for Renee in 2021 is:
= $4,000.
Explanation:
a) Data:
Home mortgage - $110,000
Interest on home mortgage = $4,000
Home equity loan for a cruise around the world = $130,000
Interest on the home equity loan = $8,000
Deductible interest expense for Renee in 2021 is $4,000
b) Usually, the interest expenses that a taxpayer pays on her home equity loan to enjoy a cruise around the world, on personal credit card, on automobile loan, and on other types of personal consumer finance interests are not tax-deductible.
