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3 years ago

Land was acquired in 2018 for a future building site at a cost of $40,000.

Business

1 answer:

maw [93]3 years ago

3 0

Answer:

(A) $40,000

Explanation:

At the time of recording of the fixed assets, the fixed assets should be recorded at purchase cost or historical price

Since in the question, the land was purchased at $40,000. Moreover, for the tax purpose, the land is valued at $27,000 and the qualified appraiser appraise the value at $48,000. The cash payment is also offered for $46,000

But at the time of recording or reported, the balance sheet would show at the purchase price i.e $40,000

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your Christmas ski vacation was great, but it unfortunately ran a bit over budget. All is not lost, because you just received an

kobusy [5.1K]

Answer:

If the interest rate decreases, you will be able to pay back the loan in only 58 months, which is 27 months less than with the higher interest rate.

Explanation:

I prepared an amortization schedule using the 21.8% rate, an it would take 85 months to pay of your debt completely. But if the interest rate decreases to 12.4%, it will take you only 58 months.

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3 years ago

20 3 The manager of a branch office of Banco Mexicali observed that during peak hours an average of customers arrives per hour a

Vesnalui [34]

Answer:

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Explanation:

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2 years ago

Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near ter

Zina [86]

Answer:

PV = 2,464,749.47

Explanation:

Perptuities = ammount/ (rate - growth)

175,000/(0.097-0.038) = $2,966,101.695

This value is two years from the present day.

Notice: "it will be received two years from today"

So we need to adjusted to bring it to present

$\frac{Principal}{(1 + rate)^{time} } = PV$

$\frac{2,966,101.695}{(1 + 0.097)^{2} } = PV$

PV = 2,464,749.47

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2 years ago

Assume that you manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 42%. The T-bill rate

amm1812

Answer:

a. Expected Return = 16.20 %

Standard Deviation = 35.70%

b. Stock A = 22.10%

Stock B = 29.75%

Stock C = 33.15%

T-bills = 15%

Explanation:

a. To calculate the expected return of the portfolio, we simply multiply the Expected return of the stock with the weight of the stock in the portfolio.

Thus, the expected return of the client's portfolio is,

w1 * r1 + w2 * r2
85% * 18% + 15% * 6% = 16.20%

The standard deviation of a portfolio with a risky and risk free asset is equal to the standard deviation of the risky asset multiply by its weightage in the portfolio as the risk free asset like T-bill has zero standard deviation.

85% * 42% = 35.70%

b. The investment proportions of the client is equal to his investment in T-bills and risky portfolio. If the risky portfolio investment is considered of the set proportion investment in Stock A, B & C then the 85% investment of the client will be divided in the following proportions,

Stock A = 85% * 26% = 22.10%
Stock B = 85% * 35% = 29.75%
Stock C = 85% * 39% = 33.15%
T-bills = 15%
These all add up to make 100%

3 0

3 years ago

Read 2 more answers

If you were opening a savings account with compound interest, would you prefer an account that offers annual compounding, quarte

max2010maxim [7]

It is very simple. The more often it is compounded the better. So daily is the best, next is weekly, monthly etc. The greater the number of compounding periods, the better it is for your bottom line.
With a savings account you are lending the bank money but with a mortgage they lend you money so conversely, you want as few compounding periods as possible.
It works this way because at each break point to which they compound interest (ie.say monthly) they capitalize (add the interest earned to that point) into the investment and you earn interest on your interest for the next period as well as on the principal you started with (next month in this scenario) So the more often they include the interest earned into the calculation (compound periods) the greater the impact on growth. hope it helps

4 0

2 years ago