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Mars2501 [29]
3 years ago
7

You have bought a house today at the price of $500,000. In the next two years, you will get a rent of $50,000 each year. In year

3, there is no rent income but you will sell the house at the price of $800,000. Suppose the discount rate (interest rate) is always 10% each year. What is the present value at time zero for the rent income at year 1
Business
1 answer:
Illusion [34]3 years ago
6 0

Answer:

Present Value= $45,454.55

Explanation:

Giving the following information:

You will get a rent of $50,000 each year.

The discount rate is 10%.

To calculate the present value at time zero of the first rent, we need to use the following formula:

PV= FV/(1+i)^n

PV= 50,000/(1.10)= $45,454.55

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A department adds raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout th
Evgen [1.6K]

Answer:

51,000

Explanation:

Beginning WIP 0

Started into Production (60,000+15,000)

Total Units 75,000

Transferred Out (60,000 – 15,000)

= 45,000 = 45,000 equivalent conversion units

Ending WIP 15,000

= 15,000 * .4 = 6,000

45,000+6000 =51,000

Total Units 75,000 = 51,000 conversion total equivalent units

Therefore the equivalent units of production for conversion costs for the month of July is 51,000

7 0
3 years ago
Perform a horizontal analysis on the following information providing both the dollar amount and percentage change.
Vera_Pavlovna [14]

Answer and Explanation:

The computation of the percentage of each amount is as follows;

<u>Particulars         2020               Change               Percentage of change </u>

                                a                         b                         (b ÷ a) × 100

Cash             $170,000       $500,000            294%

Accounts Receivable $710,000 $270,000            38%

Inventory                $520,000    $190,000             37%

Long Term Assets  $2,100,000 -$200,000         -9.52%

Total Assets          $3,500,000   $760,000           21.71%

6 0
2 years ago
The following information pertains to the Packer Corporation. Calculate the cost of goods sold for the period:
sweet [91]

Answer:

B. $250,300.

Explanation:

We are asked to solve forthe amoung of cost of goods sold.

we add up the beginning FG and the manufactured goods

then we subtract the ending FG which represent the unsold amount

Cost Of Goods Sold

beginning Finished Goods           72,300

Cost Of Goods Manufactured <u> 246,300</u>

Total goods available for sale       318,600

ending FG                             <u>     -68,300</u>

Cost Of Goods Sold           250300

8 0
3 years ago
Read 2 more answers
On January 1, Year 1, Milton Manufacturing Company purchased equipment with a list price of $88,000. A total of $4,000 was paid
maxonik [38]

Answer:

The depreciation expense for Year 1 is $9880

Explanation:

The cost of equipment to be recorded in the books is the price at which it was purchased and the cost incurred to bring it to intended use that is the installation cost. Thus, the cost of the equipment in the books will be recorded as,

Equipment = 88000 + 4000 = $84000

The insurance and maintenance are recurring expenses and are not capitalized.

The depreciation rate under units of production method is,

Depreciation rate = (cost - salvage value) / estimated useful life in units

Depreciation rate = (84000 - 8000) / 100000  =  $0.76 per unit

The depreciation expense for Year 1 = 0.76 * 13000 = $9880

5 0
3 years ago
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Which of the following collect and evaluate career outlook information:
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4 0
3 years ago
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