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Digiron [165]
3 years ago
11

Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability of $ 398 comma 930 due in 28 y

ears. Toni​ Flanders, the​ company's CEO, is scrambling to discount the liability to the present to assist in valuing the​ firm's stock. If the appropriate discount rate is 7 ​percent, what is the present value of the​ liability?
Business
1 answer:
Sladkaya [172]3 years ago
3 0

Answer:

Present value of Liability is $59,989

Explanation:

Money does not have the same value in future as it has today. The present value calculates the today's value of any that cash flow will be made in future.

Liability = FV = $398,930

Number of years = n = 28 years

Discount rate = r = 7%

Present value = FV / ( 1 + r )^n

Present value = $398,930 / ( 1 + 0.07 )^28

Present value = $398,930 / 6.65

Present value = $59,989.47

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In the RST partnership, Ron's capital is $80,000, Stella's is $75,000, and Tiffany's is $50,000. They share income in a 3:2:1 ra
uysha [10]

Answer:

C. Stella, Capital will be debited for $4,000.

Explanation:

As for the provided information, we have,

Out of all the partner's Tiffany is retiring.

Tiffany's capital balance = $50,000

On his retirement he is paid $60,000

Since no goodwill is recorded, the excess amount paid over capital = $60,000 - $50,000 = $10,000, will be debited in remaining partner's ratio.

Ron's share in these $10,000 = $10,000 \times 3/(3+2) = $6,000

Stella's share = $10,000 \times 2/(2+3) = $4,000

Thus, Correct answer is debiting Ron's capital by $6,000 and Stella's capital by $4,000

3 0
3 years ago
The changes in account balances of the Vel Corporation during Year 6 are presented below: Increase Assets $356,000 Liabilities 1
zzz [600]

Answer:

b. $ 36,000

Explanation:

The fundamental accounting equation is

Assets = Liabilities + Stockholders Equity

Per the data provided in the question regarding changes in account balances

$ 356,000 = $108,000 + (240,000+24,000)

$ 356,000 = $ 372,000

= - ($ 14,000)

Since the data provides that a dividend payment of $ 52,000 has been made, we have to add it to our differential balance to get the income for the year.

$ - 14,000 + $ 52,000  = $ 36,000

6 0
3 years ago
You have just made your first $5,837 contribution to your retirement account. Assume you earn a return of 9.8 percent per year a
Dmitrij [34]
25,741.17
because you multiply 0.098x5,837x45! hope this helps!
3 0
2 years ago
Consider the following income statement for the Heir Jordan Corporation:_____.
lions [1.4K]

Answer:

The rest of the question and the answer are attached.

To get the percentages, the following formula was used;

= (Account/ Sales) * 100

For instance, for the Fixed Assets it was;

= (37,200/48,200) * 100

= 77.18%

3 0
3 years ago
Dividends on Preferred and Common Stock Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Peca
Sergio039 [100]

Answer:

Year 1, $24,000; Year 2, $72,000; Year 3, $108,000; Year 4, $138,000; Year 5, $168,000; and Year 6, $210,000.

30,000 shares of 2% preferred stock $100 par

100,000 shares of common stock $25 par

dividends distributed per preferred stock $2 x 30,000 stocks = $60,000

                             Year        Year        Year        Year         Year         Year

                                1               2             3              4              5               6

total dividends 24,000   72,000   108,000  138,000   168,000   210,000

<u>distributed                                                                                                          </u>

to preferred     24,000   72,000    84,000    60,000     60,000    60,000

<u>stocks                                                                                                                 </u>

per preferred      0.80        2.40        2.80           2               2              2

<u>stock                                                                                                                   </u>

to common            0             0         20,000    78,000   108,000   150,000

<u>stocks                                                                                                                 </u>

per common            0              0          $0.20       $0.78     $1.08        $1.50

<u>stock                                                                                                                   </u>

7 0
3 years ago
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