Answer:
$1,388,200
Explanation:
The total stock holders equity as at the end of the year shall be determined as follows:
Common stock Retained Earnings Total
Balance of Jan 1 $597,000 $690,000 $1,287,000
Net income for year $96,000 $96,000
Dividend paid ($14,800) ($14,800)
Common stock $20,000 $20,000
Balance at year end $617,000 $771,200 $1,388,200
Answer:
B. The value of a perpetuity is equal to the sum of the present value of its expected future cash flows.
C. The current value of a perpetuity is based more on the discounted value of its nearer (in time) cash flows and less by the discounted value of its more distant (in the future) cash flows.
Explanation:
A Perpetuity is a financial instrument that pays the holder forever or in perpetuity. For example, a bank paying you $800 per year for ever because you invested $40,000.
There are certain characteristics
Option B
The Perpetuity like most financial Securities has its value based on the underlying cashflows that it can accumulate. This means that it's value is based on the present value of it's future cashflow so the other the cash payments, the higher the present value.
Option C.
As the discounted cashflows in the nearer future will be discounted less by the discount rate as opposed to the cash flows further in future, the cashflows nearer to the present in time will contribute more to the Perpetuity than the cashflows further in time.
For example using that first example, $800 per year at a rate of 5% will be discounted to $762 in the first year but in year 10 will be discounted to $491.
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Answer:
The correct answer is C.
Explanation:
Giving the following information:
Each ceiling fan has 20 separate parts.
The direct materials cost is $ 85
Each ceiling fan requires 3 hours of machine time to manufacture.
Activity (Allocation Base) - Predetermined Overhead Allocation Rate
Materials handling (Number of parts) - $0.04
Machining (Machine hours) - $7.8
Assembling (Number of parts) - $0.35
Packaging (Number of finished units) - $3
Total unitary cost= direct material + allocated overhead
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Total unitary cost= 85 + (0.04*20 + 7.8*3 + 0.35*20 + 3*1)= $119.2