Answer:
The present value of the loan is $15,877
Explanation:
Solution
Given that:
A company must pay back the bank a single payment of =$20,000
The loan of interest = 8%
Present value of 1 = 8% for 3 years (0.7938)
Present value of annuity = 8% for 3 years (2.5771
Now,
We solve for the loan present value
which is,
$20,000 * 0.7938 =$15, 877
For the annuity (series of payment) = $20,000 * 2.5771
= $51,542
Answer: $107,900
Explanation:
Cumulative Preferred Shares refer to shares that a company has to pay dividends eventually. This means that if they are unable to pay for some years, they are to accrue that payment until they are able to.
There are 119000 shares of no-par 6% preferred stock with a stated value of $5.
That means preferred shares are liable to the following amount of dividends,
= 119,000 * 5 * 6%
= $35,700
Preferred Shares have not being paid for the past 2 years and need to be paid in the current year as well. That means 3 payments,
= 35,700 * 3
= $107,100
Preferred Shares are to be paid $107,100 out of the $215,000 with the rest going to common shares.
Amount going to Common Shares is,
= 215,000 - 107,100
= $107,900
Common Stockholders are to receive $107,900
Answer:
1. Address the needs of your shared target audience better than your competition can.
2. Find a niche in the market via storytelling and specialization.
3. Offer more affordable pricing.
4. Improve on an existing model.
5. Provide great customer service.
Explanation:
Answer:
(a) March 12, 2017
(b) Recognized gain = $15,000
(c) Adjusted basis = $450,000
(d) Recognized gain = $175,000
Mitchell basis = $625000
Explanation:
(a) March 12, 2017 is the earliest Mitchell can acquire a new restaurant and qualify for § 1033 postponement
(b) Assuming that he elects postponement of gain under § 1033, the recognized gain is calculated as;
Recognized gain = Award received - cost of land
=$625000 - $610,000
= $15,000
(c) From the question, Mitchell's adjusted basis for the new land and building is $450,000
(d) If Mitchell does not elect § 1033, his recognized gain is calculated as;
Recognized gain = Award received- adjusted basis for the building
=$625,000 - $450,000
=$175,000
Also,Mitchell basis for the new land and building is $625000
