Answer:
$76,620.83
Explanation:
According to the scenario, computation of the given data are as follows
Future Value (FV) = $100,000
Rate of interest = 10% yearly
Rate of interest (Rate) = 10%÷ 2 = 5% semiannually
Number of period (Nper) = 9 × 2 = 18
Face value = $100,000
Payment (pmt) = $100,000 × (6%÷2) = $3,000
By putting the value in excel present value formula, we get,
PV = $76,620.83
Attachment is attached below
Answer: Net loss = $2
Explanation:
Given that,
Purchase one IBM July 120 put contract for a premium of $5
IBM stock is at $123 per share on the market
In buying these kind of call option, a person can makes the profit if the future price of the share is greater than the strike price.
Here,
Profit = $123 - $120 = $3
But, we have to deduct the premium paid that is $5
Therefore,
Net loss = Profit - premium paid
= 3 - 5
=$2 ⇒ This much loss realize on a the investment.
Answer:
Functional need
Explanation:
Functional need -
It refers to the needs of the human being , which are important for the survival , is referred to as functional need .
These are basic requirements which are important for the day to day activities of the people .
Hence , from the scenario of the question,
Sarah bought a cycle , but as soon as she realized that basket is important for keeping her bag and other item .
Hence, the need of basket is the functional need .
Answer:
warranty expense 250,000 debit
waranty liability 250,000 credit
warranty liaiblity 37,500 debit
cash 37,500 credit
Explanation:
The warranty expense will be 5% of sales
5,000,000 x 5% = 250,000
We will create a liability to represent the future expenses and when they occur we decrease the warrant liability.
As we already declare the associate warranty expense based on sale the expenditures o ot generate an expense.
Answer:
The Journal entry and their narrations for recording the bonds retirement is shown below:-
Explanation:
The Journal entry is shown below:-
Bonds payable Dr, $70,000
Loss on redemption of bonds Dr, $3,832
($68,000 - $64,168)
To Bond discount amortization $5,832
($70,000 - $64,168)
To Cash $68,000
(Being bonds retirement is recorded)
So, for recording the early retirement of the bonds we debited the bonds payable and loss on redemption of bonds and credited the bond discount amortization and cash.
