Answer:
The offer should be accepted
Explanation:
It is known that the amount $100,000 will be paid to someone when he turns 26 years. The current age is 21 years.
the 5-years bond is given 3.1 percent of interest rate.
another option for the person is offered $103,021.02 right away which is the present value.
The present value of the $100,000 that is going to be received after 5 years is calculated as follows;
Present value = Amount to be received /(1+interest rate/100)^t
= 100,000/(1+ 3.1/100)⁵
= 100,000/ 1.031⁵
= $85,843.35
Therefore, the present value is $85,843.35 for the amount $100,000 to be receive after five years.
Since the amount $103,012.02 he was offered is greater than the present value of his inheritance after 5-years, the person should accept the offer and forget about the inheritance of $100,000.
Answer:
Section 338 allows the corporation to purchase stock and retain the basis of assets. It also allows adjusting the basis for the assets. Under section 338 the, if the corporation sold its assets, the transactions related to sale will be subjected to double tax. Whereas, if the corporation cause liquidation for the target asset's and then undergo for a sale is subjected to single tax.
Answer:
$1,568,498
Explanation:
First calculate the Amont of discount
Discount on the bond = Face value - Proceeds from the bond = $20,000,000 - $19,604,145 = $395,855
Now prepare the bond amortization
The Bond Amortization schedule is attached with this answer, please find it.
Now calculate the interest expense for 2017
Interest Expense 2017 = $784,165.80 + $784,332.43
Interest Expense 2017 = $1,568,498.23
Interest Expense 2017 = $1,568,498
Answer:
A plant asset will add to assets and subtract from liabilities.
Explanation:
The general ledger holds all of the information needed to prepare financial statements and includes assets, liabilities, equity, revenue and expenses.
I hope I understood the question and that this helps.
Answer:
$7,222
Explanation:
Given that,
Selling price per dozen = $18
Variable costs = $5 per dozen
Total fixed costs = $ 5,200
Contribution margin per dozen:
= Selling price per dozen - Variable costs per dozen
= $18 - $5
= $13
Contribution margin ratio:
= (Contribution margin ÷ Selling price per dozen) × 100
= ($13 ÷ $18) × 100
= 0.72 × 100
= 72%
Break-even sales in dollars:
= Total fixed costs ÷ Contribution margin ratio
= $5,200 ÷ 0.72
= $7,222
