1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Artemon [7]
3 years ago
12

Taggart Transcontinental currently has a bank loan outstanding that requires it to make three annual payments at the end of the

next three years of $1,000,000 each. The bank has offered to allow Taggart Transcontinental to skip making the next two payments in lieu of making one large payment at the end of the loan's term in three years. If the interest rate on the loan is 6%, then the final payment that the bank will require to make Taggart Transcontinental indifferent between the two forms of payments is closest to:
Business
1 answer:
prohojiy [21]3 years ago
6 0

Answer:

Future value is approximately $3,183,600 which is equal to $3,184,000.

Explanation:

Please see attachment

Download pdf
You might be interested in
On January 1, 2018, Ameen Company purchased major pieces of manufacturing equipment for a total of $36 million. Ameen uses strai
vfiekz [6]

Answer:

1.31-Dec-21

Dr Income tax expense $12.50

Cr To Income taxes payable $11.00

Cr To Deferred tax liability $1.50

2.$37.50 million

Explanation:

1. Preparation of the appropriate journal entry to record Ameenâs 2021 income taxes. Assume an income tax rate of 25%.

Depreciation as per books for 2021 = $30 - $28 Depreciation as per books for 2021= $2 million

Depreciation as per tax for 2021 = $20 - $12

Depreciation as per tax for 2021 = $8 million

Taxable income = $50 + $2 - $8

Taxable income = $44 million

JOURNAL ENTRIES - Ameen Company (In million)

31-Dec-21

Dr Income tax expense $12.50

Cr To Income taxes payable ($44*25%) $11.00

Cr To Deferred tax liability ($6*25%) $1.50

(To record income tax expense)

2. Calculation to determine What is Ameenâs 2021 net income?

Ameen's 2021 net income = $50 - $12.50

Ameen's 2021 net income = $37.50 million

Therefore Ameen's 2021 net income is $37.50 million

6 0
2 years ago
Sheridan Co. purchased machinery that cost $2650000 on January 4, 2019. The entire cost was recorded as an expense. The machiner
Novay_Z [31]

Answer:

See below

Explanation:

Recording the entire cost as expense would have understated retained earnings by $2,650,000

Annual depreciation on machine = ( Purchase cost - Residual value ) / Useful life

= ($2,650,000 - $165,000) / 9

= $2,485,000 / 9

= $276,111.11

Depreciation would have been recorded for $552,222 for 2 years had the machinery been corrected recorded I.e $276,111 × 2 = $552,222

Therefore , the cumulative effect of this error on the income statement of Sheridan for the year ended, 31 December 2021 would have shown

= $2,650,000 - $552,222

= $2,097,779

7 0
3 years ago
Ramos Corporation is considering the elimination of one of its segments. The segment incurs the following fixed costs. If the se
g100num [7]

Answer:

$362,000

Explanation:

The market value of the building is an opportunity cost that is avoidable.

Ramos would avoid the real estate taxes if it sold the building.

Therefore,

Amount of avoidable cost associated with the segment:

= Annual advertising expense + Market value of the building (opportunity cost) + Annual maintenance costs on equipment + Annual real estate taxes on the building + Annual supervisory salaries

= $ 70,000 + $80,000 + $56,000 + $6,000 + $150,000

= $362,000

8 0
3 years ago
Does it make sense? Is it reasonable? Is it something consumers will get excited about? Does it take advantage of an environment
aliya0001 [1]

Answer: (E) Product/service

Explanation:

 The product or the service is basically refers to the feasibility component that helps in analyzing the feasibility of the given products component in the market.

The main objective of the products and the service feasibility analysis is that it helps in analyzing the main idea of the business on the basis of demand and the desirability in the market.

According to the given question, the product/service is one of the type of component in the feasibility analyzing that helps in the process of products development.  

 Therefore, Option (E) is correct answer.      

 

5 0
3 years ago
A firm has $800,000 in paid-in-capital, retained earnings of $40,000 (including the current year's earnings), and $25,000 shares
vfiekz [6]

Answer:

The correct answer for option (a) is $1.6 per share and for option (b) is decrease in cash and retained earning.

Explanation:

According to the scenario, the computation for the given data are as follows:

(a) We can calculate the amount that firm can pay in cash dividend by using following formula:

Amount to pay in cash dividend = $40,000 ÷ 25,000

= $1.6 per share

(b). If the cash dividend is $0.80 per share than the cash and retained earning can be calculated as follows:

Cash and retained earning = $0.80 × 25,000 = $20,000

As $20,000 is less than previous, than it will decrease the cash and retained earning.

5 0
3 years ago
Other questions:
  • . JetGreen Cleaners makes 80% of its sales on credit. Experience shows that 25% of the credit customers pay in the month of sale
    11·1 answer
  • Rocket Shoe Company is planning a one-month campaign for August to promote sales of one of its two shoe products. A total of $11
    11·1 answer
  • All of the following statements concerning shortage are true, EXCEPT: Group of answer choices
    13·1 answer
  • A company buys a machine for $79,000 that has an expected life of 4 years and no salvage value. The company uses straight-line d
    7·1 answer
  • Suppose that the market equilibrium price for a good is $3.00. A nonbinding price ceiling in this market will result in a price
    10·2 answers
  • A local finance company quotes an interest rate of 18.7 percent on one-year loans. So, if you borrow $42,000, the interest for t
    9·1 answer
  • Betty Vinson improperly capitalized line costs at her boss's direction. Which company did she work for
    11·1 answer
  • What do law enforcement public safety corrections and security agencies usually provide to help their employees manage stress Pl
    14·1 answer
  • On the income statement, a merchandising company reports the cost of merchandise inventory that had been sold to customers. TRUE
    5·1 answer
  • in a recent issue of aarp the magazine, a print ad for state farm insurance annuities advises readers that "the company has help
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!