Answer:
a. $965.74
b. $939.11
Explanation:
In this question we use the Present value formula i.e shown in the attachment below:
1. Given that,
Future value = $1,000
Rate of interest = 6.5%
NPER = 4 years
PMT = $1,000 × 5.5% = $55
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the price would be $965.74
2. Given that,
Future value = $1,000
Rate of interest = 6.5%
NPER = 8 years
PMT = $1,000 × 5.5% = $55
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the price would be $939.11
Drinking from a fresh water bottle in dimensions
Answer:
Total work in process = $12,900
Explanation:
Provided information,
Cost incurred during the month on this order
Direct Materials = $2,100
Direct Labor = $3,600
Provided overheads are 200% of the direct labor cost = $3,600 
200% = $7,200
Thus month end balance of work in process = $2,100 + $3,600 + $7,200
Total work in process = $12,900
Note: additional information regarding expenses to be incurred is to be ignored, and the above value is the value of work in process.
Total work in process = $12,900
Answer:
Does the agreement specify that ownership of the asset transfers to the lessee? NO
Does the agreement contain a bargain purchase option? NO
Is the lease termequal to75% or more of the expected NOeconomic life of the asset? NO (4 < (.75 X 6))
Is the present value of the minimum lease payments equalto or greater than 90% of the fair value of the asset? NO
10,000 X 3.72325
= (37233 < (.9 X 44,000))
Annuity due : n=4, i=5%.
Does the agreement specify that ownership of the asset transfers to the lessee? NO
Does the agreement contain a bargain purchase option? YES
Is the lease termequal to75% or more of the expected NOeconomic life of the asset? Yes (4 > .75X5)
Is the present value of the minimum lease payments equalto or greater than 90% of the fair value of the asset? NO
35,456 < (.9 X 43,000)
10,000 X 3.54595
Ordinary annuity
n=4, i = 5%.
