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jenyasd209 [6]
3 years ago
14

If you want to be able to withdraw $100,000 per year forever beginning 20 years from now, how much will you have to have in your

retirement account (that earns 8% per year interest) in year 0 (now)
Business
1 answer:
Schach [20]3 years ago
5 0

Answer:

The answer is $289,640.08

Explanation:

Solution

Given that:

You want to make a withdrawal of the amount = $100,000 per year

Number of years = 20

Interest per year = 8%

Now,

Let the current balance required is X

The amount in bank due to the interest after 19 years =X(1+0.08)^19

This should be equal to the 100,000 drawn forever.

Thus,

X(1.08)20-100,000=A(1.08)19 [i.e after drawing $100,000 a year later, this same amount should remain]

Hence,

X = $289,640.08

Therefore the amount you will have to have in your retirement account in year 0 is $289,640.08

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Which mall should the company choose if revenues are expected to be $6,000,000 per year?
blondinia [14]
It A hope this helps
3 0
3 years ago
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During its first year of operations, Silverman Company paid $12,385 for direct materials and $10,600 for production workers' wag
Bingel [31]

Answer:

Finished goods inventory final balance= 12, 495

Explanation:

PRODUCTION COST COMPONENTS

  • Direct materials 12,385  
  • Direct work 10,600  
  • Lease and utilities 9,600

TOTAL PRODUCTION COST = 32,585

TOTAL UNITS PRODUCED = 6,650

UNIT COST= (Total Production Cost / Total Units Produced) = 32,585 / 6,650 = 4.9  

FINAL GOODS INVENTORY = (Total Units Produced – Total Units Sales) = 6,650 – 4,100 = 2,250

FINAL GOODS INVENTORY AMOUNT = (Final goods Inventory * Unit Cost) = 2,250 * 4.9 = 12,495

4 0
3 years ago
93) Jack Corporation purchased a 20% interest in Jill Corporation for $1,500,000 on January 1, 2021. Jack can significantly infl
Yanka [14]

Answer:

$1,200,000

Explanation:

Jack Corporation

Carrying value before net loss:

($1,500,000 - (20% x $1,000,000))

=$1,500,000-$200,000

= $1,300,000

Jack's share of net loss recognized in full:

20% x $6,000,000

= $1,200,000

Therefore the amount of loss should Jack report in its income statement for 2021 relative to its investment in Jill will be $1,200,000

8 0
3 years ago
On January 1, 2013, Ameen Company purchased a building for $36 million. Ameen uses straight-line depreciation for financial stat
Amiraneli [1.4K]

Answer:

1.Dr Income Tax Expense 22

Cr Income Tax Payable 16

Cr Deferred Tax Liability 6

2.Net Income of Ameen in 2016 = $23

Explanation

1.Preparation of the appropriate journal entry to record Ameena 2016 income taxes

Calculation for Pretax accounting income

Pretax accounting income = $45

Less:Excess Depreciation as per tax = ($5)

($20-$13)-($30-$28)

$7-$5

=$5

Taxable Income = $40

Income tax for the year = 40 × 40%

Income tax for the year= $16

Calculation for Deferred Tax Expense for the year 2016

Deferred Tax Expense for the year 2016 = ($28 - $13) ×40%

Deferred Tax Liability= $15 ×40%

Deferred Tax Liability= $6

Calculation for Income Tax Expense

Income Tax Expense = $16 + $6

Income Tax Expense= $22

Therefore the appropriate journal entry to record Ameena 2016 income taxes will be:

Dr Income Tax Expense $22

Cr Income Tax Payable $16

Cr Deferred Tax Liability $6

2. Calculation for Ameen 2016 net income

Net Income

Accounting Income of Ameen = $45

Less: Total Tax Expense = ($22)

Net Income of Ameen in 2016 = $23

Therefore the Net Income of Ameen in 2016 will be $23

3 0
3 years ago
All of the following situations contribute to the need for a company to recognize deferred revenues, except for:
blondinia [14]

Answer: C) mutually unexecuted contracts between buyers and sellers.

Explanation:

Mutually Unexecuted contracts refer to a situation where both parties being the buyer and the seller have not executed their parts of the bargain or rather fulfilled their parts of the contract.

In such a case, even though legally, there is an obligation to perform due to the signing of a contract, Accounting wise, there is no need to record a liability.

This is why Mutually Unexecuted contracts do not contribute to the need to recognize deferred revenue.

7 0
3 years ago
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