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Aloiza [94]
3 years ago
8

A Firm needs to replace most of its machinery in five years at a cost of $500,000. The company wishes to create a sinking fund t

o have this money available in five years. How much should the quarterly deposits be if the fund earns 8%
Business
1 answer:
DaniilM [7]3 years ago
6 0

Answer:

The quarterly deposit required is $ 20,578.36

Explanation:

in order to determine the needed quarterly deposit, we make use of pmt formula in excel, which is given as :

=-pmt(rate,nper,-pv,fv)

rate is the rate of return on the deposit at 8% per year but 2% per quarter(8%/4)

nper is number of deposits required in the fund,which number of years ,5 multiplied by 4(4 deposits per year)

pv is the present of the value of the future amount which is zero as it is not required.

Fv is the amount expected in 5 years which is $500,000

=-pmt(2%,20,0,500000)

pmt= $20,578.36

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Answer:

hello your question has a missing journal entry table attached below is the entry journal table completely filled

Explanation:

Amount of bonds acquired = 40% of original bond

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hence the annual amortization

(bonds payable - purchase price of bonds ) / 10 years - 2 years

(520000 - 499200 ) / 8  = $20800/8 = $2600

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intra entity expense and income table is attached below

from the table

iii) intra-entity interest expense = $39000 and the

iv) intra-entity interest income = $44200

v) investment in bonds

purchase price of bonds + annual amortization

= $499200 + $2600 = $501800

the book value on bonds as at 1st January 2011

=$1300000 * 105% = $1365000

Premium on bonds as at January 1st 2011

= $1365000 - $1300000 = $65000

amortization of premium as at January 1st 2011

=( ($65000) / 10 years ) * 2 years

= $13000

hence the controlling interest in bonds payable = $540800

vi) gains on retirement bonds

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attached below is the journal entry on 31st December 2013

5 0
3 years ago
Companies in the U.S. car rental market vary greatly in terms of the size of the fleet, the number of locations, and annual reve
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Answer:

The question does not include any requirements, so I looked for similar questions:

  1. Use the least squares method to develop the estimated regression equation.
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2) for every 1 thousand cars put into service, revenue should increase by $12.82 million.

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For an activity base to be useful in cost behavior analysis: a) there should be a correlation between changes in the level of ac
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Answer:

Option A is the correct one

Explanation:

Among the various options given in question statement, option A is correct

Cost behavior analysis is done make management comprehend the impact of various costs change versus changes in activities in various levels of the company. This may involve direct materials, direct labor, and overhead costs. Hence if there is no correlation between changes in the level of activity and changes in costs, then such analysis wont be an effective cost behavioral analysis

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Legazint, a law firm, organizes its staff into departments based on the type of clients the department deals with. These departm
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Legazint most likely follows <u>b. a customer-based division</u>.

<u>Explanation:</u>

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Answer:

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Enacted tax rate = 30%

Tax rate for future years = 40%

so Deferred tax liability = $250,000 x 40% = $100,000

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