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Rainbow [258]
3 years ago
5

Your sister's pet supplies business obtained a 30-year amortized mortgage loan for $250,000 at a nominal annual rate of 7.0%, wi

th 360 end-of-month payments. The firm can deduct the interest paid for tax purposes. What will the interest tax deduction be for for the first year of the loan
Business
1 answer:
Amiraneli [1.4K]3 years ago
4 0

Answer:

$17,419.55

Explanation:

To calculate the loan payment we use the formula:

a/ {[(1+r)^n]-1] / [r (1+r)^n]-1}

Where

a= $250,000

n= 360 (i.e 30years * 12months)

r = 0.00583/12 (7% / 12months)

=250000/{[(1+0.00583)^360]-1}/[0.00583(1+0.00583)^360]= $1663.26.

She'll pay $1663.26 in a month.

You'll need to construct an amortization table to get her annual payment.

After using the ammortization table properly her year1 payment will be $17419.55

You might be interested in
At $180, a firm can sell 18,100 stereo earphones (3.5 mm for android). These are premium earphones, guaranteed for 5 years. At t
kifflom [539]

Answer:

revenue falls by $167,005.08

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price  

When elasticity of demand is less than 1, demand is inelastic

Demand is inelastic if a small change in price has little or no effect on quantity demanded.

change in percentage demanded when price falls by 11% = 11% x 0.6 = 6.6%

Quantity demanded increases by 6.6%

Increase in quantity demanded = 18,100 x 1.066 = 19,294.60

decrease in price = 0.89 x $180 = $160.20

change in total revenue

(180 x 18,100 ) - ( $160 .20 x 19,294.60)

= 3,258,000 - 3,090,994.92

=167,005.08

6 0
2 years ago
Suppose in its income statement for the year ended June 30, 2017, The Clorox Company reported the following condensed data (doll
Leviafan [203]

The answer & explanation for this question is given in the attachment below.

5 0
3 years ago
Devon owns a real estate company. He is aware of a decline in the housing market and realizes the need to encourage the realtors
Gnesinka [82]

Answer:

Involvement Culture

Explanation:

According to my research on studies conducted by various psychologists, I can say that based on the information provided within the question Devon is using the Involvement Culture. This is a culture that emphasizes the action of something that takes a lot of time, understanding and effort. This is one of the biggest challenges that some leaders can face.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

8 0
3 years ago
Alfred lost his 3-year-old camera. It cost him $150 three years ago and had a life expectancy of 6 years. Alfred has actual cash
salantis [7]

Answer:

insurance company will pay $75 to Alfred.

Explanation:

given data

Actual cost of camera = $200

Alfred cost of camera = $150

Life expectancy = 6 years

solution

we get here first Remain life of camera that is

Remain life of camera = 6 years  - 3 years

Remain life of camera = 3 years

and

now we get here current cost of the camera that is

current cost of camera = Alfred cost of camera × (Remain life of camera ÷ Life expectancy)    ........................1

put here value and we get

Current cost of camera = $150   ×   \frac{3}{6}

Current cost of camera = $75

so that insurance company will pay $75 to Alfred.

5 0
3 years ago
On April 2, the company prepaid $9,000 cash for twelve months' rent for office space. b) The balance in Prepaid insurance repres
shepuryov [24]

Missing information:

Karla Tanner opens a web consulting business called Linkworks and recorded the following transactions in its first month of operations.

Apr. 1 Tanner invests $80,000 cash along with office equipment valued at $26,000 in the company in exchange for common stock.

Apr. 2 The company prepaid $9,000 cash for twelve months’ rent for office space. The company's policy is record prepaid expenses in balance sheet accounts.

Apr. 3 The company made credit purchases for $8,000 in office equipment and $3,600 in office supplies. Payment is due within 10 days.

Apr. 6 The company completed services for a client and immediately received $4,000 cash.

Apr. 9 The company completed a $6,000 project for a client, who must pay within 30 days.

Apr. 13 The company paid $11,600 cash to settle the account payable created on April 3.

Apr. 19 The company paid $2,400 cash for the premium on a 12-month insurance policy. The company's policy is record prepaid expenses in balance sheet accounts.

Apr. 22 The company received $4,400 cash as partial payment for the work completed on April 9.

Apr. 25 The company completed work for another client for $2,890 on credit.

Apr. 28 The company paid $5,500 cash in dividends.

Apr. 29 The company purchased $600 of additional office supplies on credit.

Apr. 30 The company paid $435 cash for this month’s utility bill.

Journalize, and prepare income statement and balance sheet

Answer:

Apr. 1 Tanner invests $80,000 cash along with office equipment valued at $26,000 in the company in exchange for common stock.

Dr Cash 80,000

    Cr Common stock 80,000

Apr. 2 The company prepaid $9,000 cash for twelve months’ rent for office space. The company's policy is record prepaid expenses in balance sheet accounts.

Dr Prepaid rent 9,000

    Cr Cash 9,000

Apr. 3 The company made credit purchases for $8,000 in office equipment and $3,600 in office supplies. Payment is due within 10 days.

Dr Equipment 8,000

Dr Supplies 3,600

    Cr Accounts payable 11,600

Apr. 6 The company completed services for a client and immediately received $4,000 cash.

Dr Cash 4,000

    Cr Service revenue 4,000

Apr. 9 The company completed a $6,000 project for a client, who must pay within 30 days.

Dr Accounts receivable 6,000

    Cr Service revenue 6,000

Apr. 13 The company paid $11,600 cash to settle the account payable created on April 3.

Dr Accounts payable 11,600

    Cr Cash 11,600

Apr. 19 The company paid $2,400 cash for the premium on a 12-month insurance policy. The company's policy is record prepaid expenses in balance sheet accounts.

Dr Prepaid insurance 2,400

    Cr Cash 2,400

Apr. 22 The company received $4,400 cash as partial payment for the work completed on April 9.

Dr Cash 4,400

    Cr Accounts receivable 4,400

Apr. 25 The company completed work for another client for $2,890 on credit.

Dr Accounts receivable 2,890

    Cr Service revenue 2,890

Apr. 28 The company paid $5,500 cash in dividends.

Dr Dividends 5,500

    Cr Cash 5,500

Apr. 29 The company purchased $600 of additional office supplies on credit.

Dr Supplies 600

    Cr Accounts payable 600

Apr. 30 The company paid $435 cash for this month’s utility bill.

Dr Utilities expense 435

    Cr Cash 435

Adjusting entries:

a) On April 2, the company prepaid $9,000 cash for twelve months' rent for office space.

Dr Rent expense 750

    Cr Prepaid rent 750

b) The balance in Prepaid insurance represents the premium paid for a 12-month insurance policy the policy's coverage began on April 1.

Dr Insurance expense 200

    Cr Prepaid insurance 200

c) Office supplies on hand as of April 30 total $1,200.

Dr Supplies expense 3,000

    Cr Supplies 3,000

d) Straight-line depreciation of office equipment, based on a 5-year life and a $4,000 salvage value, is $500 per month.

Dr Depreciation expense 500

    Cr Accumulated depreciation - equipment 500

e) The company has completed work for a client, but has not yet billed the $1,800 fee.

Dr Accrued income 1,800

    Cr Service revenue 1,800

f) Wages due to employees, but not yet paid, as of April 30 total $2,600.

Dr Wages expense 2,600

    Cr Wages payable 2,600

                 Linkworks

            Income Statement

For the month ended April 30th, 202x

Service revenue             $14,690

Wages expense             ($2,600)

Supplies expense          ($3,000)

Depreciation expense      ($500)

Insurance expense           ($200)

Rent expense                    ($750)

<u>Utilities expense               ($435)</u>

Net income                      $7,205

retained earnings = $7,205 - $5,500 (dividends) = $1,705

                   Linkworks

               Balance Sheet

For the month ended April 30th, 202x

Assets:

Cash $59,465

Accounts receivable $4,490

Accrued income $1,800

Prepaid rent $8,250

Prepaid insurance $2,200

Supplies $1,200

Equipment net $7,500

Total assets: $84,950

Liabilities and stockholders' equity:

Accounts payable $600

Wages payable $2,600

Common stock $80,000

Retained earnings $1,705

Total liabilities and stockholders' equity: $84,905

3 0
3 years ago
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