Answer:
He will have $102,979 in his retirement account in 10 years.
Explanation:
Annual Payment = $2,000
Number of Year = n = 10
Interest rate = i = 5%
Compounded Quarterly
Future value after 10 years
FV = A [ ( ( 1 + ( r / m )^mt ) - 1 / ( r / m )
FV = $2,000 [ ( ( 1 + ( 0.05 / 4 )^40 ) - 1 / ( 0.05 / 4 )
Future value = $102,979
So, Ira Schwab will have $102,979 in his retirement account in 10 years.
Answer: d. $45,000 should be debited to Land Improvements.
Explanation:
Land improvements records any moderation to land asset that is expected to add to its value and lasts for more than a year.
The paving and lighting of the parking area will add value to the area and will last longer than a year so both should go to the Land improvement account. As this account is an asset account, it will be debited when increased:
= 30,000 + 15,000
= $45,000
Increase or shift right because if the cost of production goes down then the supplier can make more products for less money therefore making the supply of a good more. if there are more supplier then the same thing happens. more product in the market.
