Answer:
- $651,234.54
Explanation:
Data provided in the question:
Cost of remodeling = $3.4 million = $3,400,000
Rent paid each year = $820,000
Duration, n = 5 years
Discount rate, r = 15% = 0.15
Now,
Present value of the amount rent paid each year = A × ![\left[ \frac{1-(1+r)^{-n}}{r} \right]](https://tex.z-dn.net/?f=%5Cleft%5B%20%5Cfrac%7B1-%281%2Br%29%5E%7B-n%7D%7D%7Br%7D%20%5Cright%5D)
Here,
A = Rent paid each year
Thus,
Present value of the amount rent paid each year
= $820,000 × ![\left[ \frac{1-(1+0.15)^{-5}}{0.15} \right]](https://tex.z-dn.net/?f=%5Cleft%5B%20%5Cfrac%7B1-%281%2B0.15%29%5E%7B-5%7D%7D%7B0.15%7D%20%5Cright%5D)
= $820,000 × 3.352153
= $2,748,765.46
Therefore,
Benefit = Present value of the amount rent paid - Cost of remodeling
= $2,748,765.46 - $3,400,000
= - $651,234.54
Unearned revenues are general revenues that Liabilities created when a customer pays in advance for products or services before the revenue<span> is earned
If a client pay us for our service in advance, we now have an obligation to provide services that we must fulfill in the future.
In accounting, we could consider this obligation as a liability which will be recorded in credit when it increased.
</span>
Answer:
See below
Explanation:
The donation will increase the assets and the owners' equity. Land and building are assets. An increase in assets is debited.
Donations received are equivalent to 'income' to the business. They add to equity. An increase in equity/capital accounts is credited.
The journal entry will be
Land A/c DR. $39,000
Building A/c DR.$395,000
Donations received A/c CR.$434,000
Moving to a larger apartment with more free amenities.
It’s true sure
Activities performed by people firms or government agencies to satisfy economic wants
The answer is ( a. True )
I hope that the answer is correct ☺️