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3 years ago

Additional fees that are paid when finalizing a home purchase are also known as _____.

Business

2 answers:

Effectus [21]3 years ago

7 0

The answer is "closing cost", because if you're at the end of buying your house then its called a "closing cost".

melisa1 [442]3 years ago

7 0

Additional fees that are paid when finalizing a home purchase are also known as "closing costs".

Closing costs allude to the charges and expenses that are paid when a house buy is settled. The two purchasers and sellers pay shutting expenses to the specialist organizations who help encourage the exchange. Normally, the purchaser's expenses incorporate home loan protection, mortgage holder's protection, examination charges and property charges, while the merchant covers possession exchange expenses and pays a commission to their land operator. Purchasers frequently consult with their new home's dealer to cover a portion of their closing costs.

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Putting money into something

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2 years ago

Paper Co. had net income of $70,000 during the year. Dividend payment was $10,000. The followinginformation is available:Mortgag

Marina CMI [18]

Answer:

net cash provided by operating activities 60,000

Explanation:

net income 70,000

Change in working Capital

Increase Inventory (40,000)

Increase Account payable 30,000

Net change in working capital (10,000)

net cash provided by operating activities 60,000

The working capital is the current asset and current liabilities.

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the securities are considered cash.

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3 years ago

A company approves a large capital investment and implements a global computer system (for example, an Enterprise Resource Plan

SpyIntel [72]

Answer:

Structural

Explanation:

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2 years ago

Chris has three options for settling an insurance claim. Option A will provide $1,500 a month for 6 years. Option B will pay $1,

Papessa [141]

Answer:

Option B. $1,025 a month for 10 years.

Explanation:

Calculate the present value of each option:

$\text{Monthly rate: } 6.8\%/12 = 0.068/12 = 0.005\overline 6$

Formula:

$PV=C\times \bigg[\dfrac{1}{r}-\dfrac{1}{r(1+r)^t}\bigg]$

Where:

PV is the present value of the constant monthly payments
r is the monthly rate
t is the number of moths

1. Option A will provide $1,500 a month for 6 years.

$PV=$\ 1,500\times \bigg[\dfrac{1}{(0.005\overline 6}-\dfrac{1}{0.005\overline 6(1+0.005\overline 6)^{(6\times12)}}\bigg]$

$PV=\$ 88,479.23$

2. Option B will pay $1,025 a month for 10 years. 

$PV=$\ 1,025\times \bigg[\dfrac{1}{(0.005\overline 6}-\dfrac{1}{0.005\overline 6(1+0.005\overline 6)^{(10\times12)}}\bigg]$

$PV=\$ 89,068.22$

3. Option C offers $85,000 as a lump sum payment today.

PV = $85,000

<h2 /><h2> Conclusion:</h2>

The present value of the option B, $1,025 a month for 10 years, has a the greatest present value, thus since he is only concerned with the financial aspects of the offier, this is the one he should select.

3 0

2 years ago

Electrodo Co. purchased land for $55,000 with $20,000 paid in cash and $35,000 in notes payable. What effect does this transacti

Archy [21]

Answer:

(c). Net increase in assets of $35,000 and a net increase in liabilities of $35,000

Explanation:

Accrual basis of accounting attempts to record transactions as and when they arise and not on the basis of when money is actually received or paid. Once a liability is certain, such a liability is provided for immediately.

The journal entry for purchase of Land partly by cash and partly for issuing a notes payable would be:

Land Dr. $55,000

To Cash $20,000

To Notes Payable $35,000

(Being land purchased by payment of $20,000 in cash and a note being issued against the balance amount)

Land and cash are assets whereas Notes Payable is a liability.

So, the effect of the above transaction would be:

Net increase of $35,000 ( $ 55,000 - $ 20,000) as debit in fixed assets account increases their balance whereas cash being a real account, the rule being debit what comes in, credit what goes out. So credit in cash account would reduce the cash balance by $ 20,000.

Notes Payable account which is to be paid in future is a liability which shall increase the liabilities by $ 35,000.

So, the correct answer is (c), Net increase in assets of $35,000 and a net increase in liabilities of $35,000.

5 0

2 years ago