Answer:
The prize is worth 4.26 million dollars today.
Explanation:
Giving the following information:
Cash flow= $500,000
Interest rate= 10% compounded annually
Number of years= 20
First, we will calculate the future value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {500,000*[(1.10^20) - 1]} / 0.10
FV= $28,637,499.75
Now, the present value:
PV= FV/(1+i)^n
PV= 28,637,499.75/1.10^20
PV= $4,256,781.86
The prize is worth 4.26 million dollars today.
<span>A) -$13. The reason being that, opportunity cost is the benefit that a person could have received, but gave up,in order to take another course of action, which in this case is skiing. And since his salary per 1 hour in the winter months is $13, skiing for one hour instead of working during that hour will cost him $13</span>
Answer:
$735,000
Explanation:
The fair values of the assets may be used as a basis for determining the amount to be recorded for each of the assets.
This will be in a proportional manner such that the higher the fair value, the higher the actual cost assigned and vice versa to the asset.
Hence the amount to be recorded for the building
= 840,000 / (840,000 + 840,000 + 1,120,000) * $2,450,000
= $735,000
Answer:
C) a debit to Merchandise Inventory and a credit to Accounts Payable
Explanation:
The journal entry to record the purchase of inventory on account by using the perpetual inventory system is shown below:
Merchandise Inventory A/c Dr XXXXX
To Accounts Payable A/c XXXXX
(Being merchandise is purchase on credit)
Simply we debited the merchandise inventory account and credited the account payable account so that the correct posting can be done.
Answer:
The consolidated balance of the Equipment account at December 31, 2015 is D $770,000.
Explanation:
[Parent's Equipment $364,000] + [Sub's Equipment $280,000] + [Excess Amortization Remaining $140,000 - $14,000] = $770,000