Answer:
$123,000
Explanation:
Data provided in the question:
Selling cost of the condominium = $150,000
Minimum down-payment required = 18%
Interest rate on mortgage = 9.5%
Now,
Cost of mortgage
= Selling cost of the condominium - Minimum down-payment required
or
= $150,000 - ( 18% of $150,000 )
or
= $150,000 - $27,000
or
= $123,000
Answer:
Current Yield= 5.68%
Explanation:
Current Yield = Coupon Paid/Price
= (2000*0.0547)/1923.74
= 5.68%
<span>The budgeting process requires significant coordination among the company's various business segments. Budgeting requires all aspects of a business to come together and make decisions. The decisions need to be made together because the company will usually have an overall budget as a whole but then the individual sections will also have a budget. When they work together if one department needs more money they are able to allocate resources and shift money around easier. </span>
Answer:
Sales Tax:
Sales tax is levied only on retail sales. Since the inventory is purchased by Mr. & Mrs. CS for their store, it will not qualify to be a retail sale. Property tax is calculated on the property. In our question, property tax will be calculated on the book value as on 31st December.
Step-I: Solution to the problem where sale is not a retail sale:
No, Mr. and Mrs. CS are not required to pay any sales tax on the purchase of inventory, since it is purchased for store and not qualifies to be a retail sale.
Step-II: Property Lax liability on Inventory:
Now, Mr. and Mrs. CS will be required to pay property tax on the book value of inventory left on 31st December. They can minimize their property tax liability by adjusting the time of their purchases. If they could have purchased the inventory in January, then the inventory could have been sold throughout the year and the book value of the stock left as on 31st December would have been lesser. Thus, the amount of tax would also be lesser
Answer:
The adjusted balance in Deferred Revenue at the end of year 1 is $1,080,000.
Explanation:
Deferred revenue is also known as unearned revenue which means that income is received but not earned. In accrual basis accounting, we record revenues only after we deliver the goods or perform the services.
In this case, the $1,800,000 is received for 10 home games which means that per game we received 1,800,000/10 = 180,000.
Since only 4 games were played during the year, the revenue earned at the end of year 1 is: 180,000*4= 720,000
The remaining 6 games will be played in year 2 but we have already received the payment of games, so it will be considered as a Deferred Revenue. The amount of Deferred Revenue at the end of year 1 is:
⇒ 180,000*6 = 1,080,000
