Answer:
FV = $16126.99655 rounded off to $16127
Explanation:
To calculate the future value of a sum of money, we simply multiply the present value by (1 + interest rate) for the period of time that we require the amount to be compounded. Thus, the formula for the future value of a sum of amount with annual compounding is,
FV = P * (1+i)^t
Where,
- FV is future value
- PV is present value
- i is the interest rate
- t is the period of time
For semi annual compounding, we simply divide the annual i by 2 and multiply the t by 2. So, Future value of an amount with semi annual compounding will be,
FV = P * (1 + i/2)^t*2
FV = 12000 * (1 + 0.06/2)^5*2
FV = 12000 * (1+0.03)^10
FV = $16126.99655 rounded off to $16127
The correct answer is Choice C.
All people and situations are different, which is what choice c is indicating. The correct answer is that not all techniques work well for all people in all situations.
Answer:
Bonita Industries is constructing a building. Construction began in 2020 and the building was completed 12/31/20. Bonita made payments to the construction company of $3090000 on 7/1, $6408000 on 9/1, and $5840000 on 12/31. Weighted-average accumulated expenditures were
Answer:
C. $40,000
Explanation:
For computing the amount of the gain recognized, first we have to calculate the gain recognized based on the adjusted basis
= Cash received + fair market value of the stock - adjusted cash basis
= $40,000 + $60,000 - $35,000
= $100,000 -$35,000
= $65,000
But the cash is received for $40,000. So, only $40,000 of gain would be recognized. As in the case of transfer, if the amount is received other than the stock so the amount which is received is recognized as a gain i.e $40,000
