Answer:
$2,319,000
Explanation:
Amount
March1 $1,884,000
June 1 $1,284,000
Dec 31 $3,082,450
Capitalization period
March1
10/12×$1,884,000 =$1,570,000
June 1
7/12 $1,284,000=$749,000
Dec 31
0
Weighted Average Accumulated expenditure
March 1 $1,570,000
June1 $749,000
Dec 31 $0
Total $2,319,000
Answer:
(a) If the discount rate is 11 percent, what is the future value of these cash flows in year 4?
To solve this problem, we must find the FV of each cash flow and add them.
To find the FV of a lump sum, we use:
FV = PV(1 + r)^t
[email protected]% = $625(1.11)^3 + $875(1.11)^2+ $1,150(1.11) + $1,250 = $4459
(b) What is the future value at a discount rate of 18 percent?
FV = PV(1 + r)^t
[email protected]% = $625(1.18)^3+ $875(1.18)^2+ $1,150(1.18) + $1,250 = $4852
(c) What is the future value at discount rate of 30 percent?
FV = PV(1 + r)^t
[email protected]% = $625(1.30)^3+ $875(1.30)^2+ $1,150(1.30) + $1,250 = $5597
Answer:
$1,103,000
Explanation:
The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.
The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.
The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.
For assets disposed, the amount received from the disposal is the amount recorded as an investing activity.
Amount received - Book value of asset = Gain on disposal
Amount received = $221000 + $882000
= $1,103,000
Given :
Bud exchanges land with an adjusted basis of $ 22,000 and a fair market value of $ 30,000 for another parcel of land with a fair market value of $ 28,000 and $2,000 cash.
To Find :
What is Bud's recognized gain or loss.
Solution :
This is a transaction of like kind exchange.
So, gain or loss to be recognized is :
Therefore, option B) is correct.
Answer: C - $30,000
Explanation: Johnston Company wants to double production of Product X from 1,000 units to 2,000 units.
The variable manufacturing cost per unit is $10. The variable non manufacturing cost per unit is $20.
The selling price per unit is $50
To increase production by 1000 units
Total cost is $10 + $20 = $30
Total incremental cost = 1,000 * $30= $30,000
