Answer:
The answer is $5767641.92
Explanation:
PV of an Annuity = C x [ (1 – (1+i)-n) / i ]
PV of an Annuity = $1,600,000 x [ (1 – (1+0.12)-5) /0.12 ] = $5767641.92
The present value of the prize is $5767641.92
Answer:
That is $2,000 loss
Explanation:
After the hurricane Oscar received $140,000 for his loss, the adjusted basis for his property was $130,000 so he had a gain of 140,000- 130,000=$10,000.
According to Sec. 1033(a)(2) since the new property that was built (the replacement) was similar we will recognise the amount received from the insurance company ($140,000) to the extent that it pays for the replacement property.
That is
Gain or loss = amount paid by insurance company- cost of replacement property
Gain or loss= 140,000- 142,000
Gain or loss= -$2,000
That is $2,000 loss
Domain extensions occur after the period
Answer: $8,400
Explanation:
The $9,600 is for 2 years in advance. This can be apportioned per month at a rate of;
= 9,600/24
= $400 per month.
October to the end of the year is 3 months so;
= 400 * 3
= $1,200 will be recorded for the year.
Prepaid Insurance will therefore reduce to;
= 9,600 - 1,200
= $8,400
Answer:
A) November 30
Explanation:
Based on accrual principle of accounting, revenue is recognized when it is earned and not necessarily when cash is received.
Revenue is said to be earned when the obligation of the delivery of service or goods sold has been met.
As such, where a company accepts a customer's order on November 30 and immediately delivers the goods to the customer, revenue is said to be earned (and will be recognized ) on the day of delivery.
