Answer:
Invest at a minimum of 7.5% annual simple interest
Explanation:
Given the goal of purchasing a boat that will cost $30,000 in 20 years, David needs to earn an interest computed below on his investment in the savings account.
Interest required = 30,000 - 12,000
= 18,000
Therefore the minimum rate of interest that will achieve this goal,
= Principal * rate * time = target amount
= 12,000 * R * 20 years = 18,000
= R = 18,000/(12,000*20) = 0.075 = 7.5%.
In addition, David could also continue his saving from his teaching job. This will reduce the minimum investment return required to achieve the goal.
Solution :
We know that the exchange takes place when the FMV receive is equal to the FMV given up.
Where the FMV = fair market value
The commercial substance means the future cash flows exchange.
The non monetary exchange refers to the cash which is less than 25% of the fair value exchange.
The journal entries for the Santana Corp. when the exchange lack the commercial substance are reported as :
Transaction Debit ($) Credit ($)
Asset(new) 11,000
Accumulated depreciation(old) 9,000
Asset (old) 28,000
Cash 2000
The journal entries for Delaware Corp. when the exchange lacks the commercial substance.
Transaction Debit ($) Credit ($)
Asset(new) 16,000
Accumulated depreciation (old) 10,000
Loss 2500
Assets (old) 28,000
I think the labor market is the nominal market in which workers find paying work, employers find willing workers, and wage rates are determined.
