Answer:
Present Value = $22,663.69
Explanation:
<em>The present value of a sum expected in the future is the worth today given an opportunity cost interest rate. In another words ,it is amount receivable today that would make the investor to be indifferent between the amount receivable today and the future sum.</em>
The present value of a lump sum can be worked out as follows:
PV = FV × (1+r)^(-n)
PV - Present value - ?
FV - Future value - 26,800
r- Interest rate per period - 4.28%
n- number of periods- 4
PV = 26,800 × (1.0428)^(-4)=22,663.69
PV = $22,663.69
Answer:
$130,000
Explanation:
Sarah is making use of the needs approach to determine how much life insurance to buy
The first step is to calculate the total amount of life insurance
Total amount of life insurance = Total needs - total assets
Total need = income needs + cash needs + special needs
= $140,000 + $30,000 + $100,000
= $270,000
Total assets= retirement plan + bank account + investment account
= $30,000 + $20,000 + $40,000
= $90,000
Total amount of life insurance = $270,000-$90,000
= $180,000
Since Sarah is covered by $50,000 group insurance by her employer then the additional life insurance that should be purchased can be calculated as follows
= $180,000 - $50,000
= $130,000
Sheila Recognized gain is 
Jacob Recognized gain is 
<u>Solution:
</u>
Sheila’s Sale:
Amount noticed 
Fixed basis 
-------------
Gain 
Recognized Gain =
Jacob’s Sale:
Amount noticed 
Fixed basis 
-------------
Gain 
Recognized Gain = $8000
The $40,000 profit base of Jacob is same as the adjusted basis of Elane.
Answer:
Journal Entry to record the purchase of the carts on June 1:
June 1:
Debit Maintenance Equipment $1,500
Credit Accounts Payable $1,500
To record the purchase of 2 maintenance carts on account.
Explanation:
a) Data and Analysis:
June 1 Maintenance Equipment $1,500 Accounts Payable $1,500
June 8 Cash $500 Unearned Service Revenue $500
June 15 Utility Expense $300 Utility Payable $300
June 20 Accounts Receivable $1,500 Service Revenue $1,500
June 30 Cash $500 Accounts Receivable $500
Answer:
b. oil prices increased faster than real GDP, but real GDP still grew at a healthy pace.
Explanation:
In this example, we compare the annual price of oil and the annual increase in GDP. When we look at the two, we can see that oil prices increased faster than real GDP. Nevertheless, we can also see that GDP still grew at a healthy pace.
GDP refers to Gross Domestic Product. This concept describes the monetary value of all good and services produced within a country's borders in a certain time period. GDP does not describe all the specific economic conditions of a country. However, it is still a useful measure for politicians and researchers in order to estimate the relative health of a country's economy.
