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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

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Partial-Year Depreciation Sandblasting equipment acquired at a cost of $42,000 has an estimated residual value of $6,000 and an
Deffense [45]

Answer:

A. Depreciation expense in 20Y5 = $900

Depreciation expense in 20Y6 = $3,600

B. Depreciation expense in 20Y5 = $2800

Depreciation expense in 20Y6 =$7840

Explanation:

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

($42,000 - $6,000) / 10 = $3,600

The depreciation expense would be $3600 each year except in 20Y5. when the equipment was used from October to December which is 3 months

Depreciation expense in 20Y5 = 3/12 x $3600 = $900

Depreciation expense using the double declining method = Depreciation factor x cost of the asset

Depreciation factor = 2 x (1/useful life)  = 2/10 = 0.2

Depreciation expense in 20Y5 = 0.2 x $42,000 = $8,400

But the equipment was only used for 3 months, so we would divide the figure above by 3

$8400 / 3 = $2800

Depreciation expense in 20Y5 = $2800

Depreciation expense in 20Y6 = book value in the beginning of 20Y6 x depreciation expense

Book value = cost of the asset - depreciation expense in 20Y5

$42,000 - $2800 = $39,200

Depreciation expense in 20Y6 = $39,200 x 0.2 = $7840

4 0
2 years ago
Operating activities: Multiple Choice Are the means organizations use to pay for resources like land, buildings and equipment. I
Lady_Fox [76]

Answer:

B. Involve using resources to research, develop, purchase, produce, distribute and market products and services.

Explanation:

A financial statement can be defined as a written report used by financial experts or accountants to quantitatively describes the financial health of a company. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.

Cash flow statement, also known as the statement of cash flows, contains financial information about operating, financial and investing activities.

Operating activities in the statement of cash-flow of a business firm gives a detailed description of the out-flow and in-flow of cash from liabilities and current assets account. Thus, all the net income or cash from all operational business activities of a company is recorded as operating activities.

Hence, operating activities involve using resources to research, develop, purchase, produce, distribute and market products and services. Some examples of operating activities are cash paid as an expense for merchandise, cash revenue generated from the sales of finished goods etc.

5 0
3 years ago
A company had no office supplies available at the beginning of the year. During the year, the company purchased $290 worth of of
ANTONII [103]

Answer:

Expensre for the year is $205

Explanation:

The cosumable equipment which offices uses regularly for professional working writing recording etc. Company holds it's inventory and record it transactions in office supplies account.

Beginning Supplies = $0

Purchases for the year = $290

Supplies at December 31 = $85

As we know

Ending Balance  = Beginning Balance + Purchases - Expense for the period

$85 = $0 + $290 - Expense for the period

$85 = $290 - Expense for the period

Expense for the period = $290 - $85 = $205

7 0
3 years ago
Consider a perfectly competitive firm that produces computers. Each additional worker at this firm can produce four computers. C
Lesechka [4]

Answer:

$4,000

Explanation:

Each additional labor can produce 4 computers and each computer is sold for $1,000. This mean that the value of the marginal product of labor is $4,000 (1,000*4). At equilibrium, the value of marginal product of labor equals the wage rate. Therefore, the marginal factor cost is $4,000.

6 0
2 years ago
The SEC's ____ reviews the registration statement filed when a firm goes public, corporate filings for annual and quarterly repo
Crazy boy [7]

Answer:

The correct answer is letter "A": Division of Corporate Finance.

Explanation:

The Division of Corporate Finance is a body of the U.S. Securities and Exchange Commission (SEC) in charge of monitoring if publicly traded companies disclose enough information for investors to make informed decisions. The Division of Corporate Finance is also responsible for reviewing new institutions filings to go public by checking their Financial Statements, Form 10-Ks -company's performance, Form 10-Qs -quarterly financial reports, and proxy materials for voting among others.

The division does not disclose the criteria of evaluation to ensure integrity in the process.

6 0
3 years ago
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