Answer:
Matt and Sarah can withdraw the following two types of funds: higher education and medical expenses
. While they cannot withdraw any funds for their new home that they are moving into because that will cost them the 10% penalty.
Hope that answers the question, have a great day!
Answer:
b. $88,204
Explanation:
The computation of the carrying value of the note payable is shown below:
= Present value of the notes + interest
= $120,000 × 0.680583 + ($120,000 × 0.680583 × 8%)
= $81,670 + $6,534
= $88,204
hence, the second option is correct
Answer:
1. Her return on investment is 20%
2. $40,000
Explanation:
1. We have Return on Investment = Net income from the Investment / The invested amount.
The net income is clearly stated in the Question which is the after-tax profit at $20,000.
The invested amount of Amelia is the amount she invested in Goodies Gift Shop which is illustrated as net worth ( owner's equity) at $100,000 in the Balance Sheet (Year 2).
As we have Return on Investment = 20,000/100,000 = 20%
2. We have the projected pre-tax profit = Projected margin - total overhead = 250K - 200K = $50,000
The after-tax profit = pre-tax profit x (1- tax rate) = 50K x (1-20%) = $40,000
Answer:
On t-account, it will be logged as Accounts Receivable $4,500 and Service Revenue $4,500.
Explanation:
a) Data and Analysis:
Accounts Receivable $4,500 Service Revenue $4,500
b) The company's assets have been increased by $4,500, and its Equity has been increased by $4,500 (through Service Revenue in Retained Earnings). When the customer pays for the work completed, the Cash account will be debited and the Accounts Receivable credited.
Answer:
$35,000
Explanation:
According to accounting standard IFRS 16 Property, Plant and Equipment is initially recorded at its cost. Estimated market value and offer price will not be considered to record this transaction. Cost incurred for this equipment is as follow:
Cash payment = $15,000
Note payable = $20,000
Total Cost = $15,000 + $20,000 = $35,000
