Answer:
taxable income per pay period = $1,637.50
Explanation:
first we must determine Yvette's pay per period. Since she is paid semimonthly, that means she gets paid twice a month = $42,000 / (12 x 2) = $42,000 / 24 pay periods = $1,750 per pay period
her 401 (k) contributions = $1,750 x 3% = $52.50
her medical premium = $60
taxable income per pay period = $1,750 - $52.50 - $60 = $1,637.50
Interest is calculated as a <u>percentage of the principal</u>. With compound interest, the interest earned is <u>added back into the principle</u> so during the next period you start earning interest on the new, higher amount. Every time the interest compounds, it gets added into the principal and you earn more and more interest.
Example:
10% simple interest on $100:
(.1 * 100) +100 = 10 + 100 = $110
But if you do 10% interest compounding monthly for 3 months you have:
Month 1: (.1 * 100) +100 = 10 + 100 = $110
Month 2: (.1*110) +110 = $121
Month 3: (.1*121) + 121 = $133.10
Even with this simple example you can see how much more money is earned when your interest is compounded and added back into the principal.
Answer:
correct option is a. No impairment should be reported
Explanation:
given data
carrying amount = $1,600,000
net cash flows = $1,630,000
fair value = $1,360,000
to find out
amount report as an impairment to its equipment
solution
we know that here impairment loss is carrying amount - higher of fair market value and value in use ..................1
here recoverable value is = $1630000
so
impairment loss is = $1600000 - $1630000
impairment loss = - $30000
here loss is negative
so that correct option is a. No impairment should be reported
Answer:
a. Debit Equipment; Credit Cash.
Explanation:
Backhoe is a fixed asset therefore, cannot be categorized as an expenditure, further it is paid in cash therefore, cash account will be credited, and further
Equipment will be debited, as asset account is debited if created or any value added in it , also in categorization the equipment will be clubbed in fixed assets but directly the amount will not be debited to fixed assets.
Therefore correct entry will be:
Debit Equipment
Credit Cash
Answer:
Net Present Value = $28756.79
Explanation:
First we need find the real rate of interest
Real rate of interest = (Nominal rate of interest - Inflation rate )
Real Rate of interest = (10.76% - 4%)
Real of Interest = 6.76%
Now using stream of cash flows and discount the at 6.76%
0 -12800 1.000
1 10000 0.937
2 10000 0.877
3 10000 0.822
4 10000 0.770
5 10000 0.721
Through multiplying discount value with cash flow we get the discounted value of cash flows.
0 -12800 x 1.000 = -12800
1 10000 x 0.937 = 9370
2 10000 x 0.877 = 8770
3 10000 x 0.822 = 8220
4 10000 x 0.770 = 7700
5 10000 x 0.721 = 7210
Adding the discounted cash flows we get the value of Net present value and that is equal to $28756.79
