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4 years ago

Carla Vista Corporation received the following report from its actuary at the end of the year:

Business

1 answer:

Zinaida [17]4 years ago

5 0

Answer:

$1,245,000

Explanation:

The computation of the amount reported as the pension liability is shown below:

= Ending balance of Projected benefit obligation - Fair value of pension plan assets

= $3,760,000 - $2,515,000

= $1,245,000

We simply deduct the fair value from the ending balance of projected benefit obligation that the amount reported could be come

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Darren and Nikki own a cabin in Mammoth, California. During the year, they rented it for 45 days for $9,000 and used it for 12 d

Neko [114]

Answer:

Total loss = 3,592.1053

Explanation:

Given:

Income from rent (For 45 days) = $9,000

Personal use = 12 days

Mortgage = $8,000

Property taxes = $2,000

Utilities = $1,200

Maintenance = $750

Depreciation = $4,000

Computation:

Total Allocated expenses = 45 days / 57 days [$8,000 + $2,000 + $1,200 + $750 + $4,000]

Total Allocated expenses = 45 / 57 [15,950]

Total Allocated expenses = $12,592.1053

Total loss = Total Allocated expenses - Income from rent

Total loss = $12,592.1053 - $9,000

Total loss = 3,592.1053

3 0

3 years ago

Which of the following organizations would be most affected by the bullwhip effect?

MissTica

In bullwhip effect , demand variability increases as one move up the supply chain away form the retail customer. The variability will increase as it move to the higher up.
An example of an organization that would be affected by this is : A coffee bean farm.

6 0

4 years ago

The current spot exchange rate is $1.55 = €1.00; the three-month U.S. dollar interest rate is 2 percent. Consider a three-month

Elan Coil [88]

Answer:

The least that this option should sell for is $3,125.

Explanation:

Acording to the data, we have the following:

The current spot exchange is $1.55=€1.00

The call option has a strike price of $1.50=€1.00 and spot price is €62,500

Hence,to calculate the least value this option should sell for we have to calculate the following:

$1.55-$1.50=$0.05

Hence, $0.05*62,500= $3,125.

8 0

3 years ago

McConnel corporation has bonds on the market with 16.5 years to maturity, a YTM of 7.7 percent, a par value of 1000 and current

White raven [17]

Answer:

Coupon rate = 0.08402 or 8.402%

Explanation:

To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = x

Total periods (n)= 16.5 * 2 = 33

r or YTM = 7.7% * 1/2 = 3.85% or 0.0385

The formula to calculate the price of the bonds today is attached.

Using the bond price formula and the available values, we calculate the coupon rate to be,

1065 = x * [( 1 - (1+0.0385)^-33) / 0.0385] + 1000 / (1+0.0385)^33

1065 = x * (18.50739407) + 287.4653284

1065 - 287.4653284 = x * 18.50739407

777.5346716 / 18.50739407 = x

x = 42.012 rounded off to $42.01

If the semi annual coupon payment is $42.01, the annual coupon payment will be 42.01 * 2 = $84.02

The coupon rate on bonds is = 84.02 / 1000

Coupon rate = 0.08402 or 8.402%

7 0

3 years ago

Sources of error in an economic survey

Sati [7]

Sources of error refer to problems in sampling that reduce the ability to make accurate deductions about the population as a whole. Examples of sources of error are:

Non observation errors: choosing a bad sample, not getting a high response from the sample that you do choose, etc

Observation errors: respondent and interviewer bias

Processing errors: incorrectly organizing or categorizing the data

8 0

3 years ago