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3 years ago

When estimating income, it is better to be:

Business

1 answer:

eimsori [14]3 years ago

5 0

Answer:

When estimating income according to the prudency concept, we are to underestimate income or revenue and over estimate cost or expenses

Explanation:

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Suppose you are going to receive $13,200 per year for five years. The appropriate interest rate is 8.1 percent.

sertanlavr [38]

Answer:

a-1) Pv = 52549

a-2) Pv = 56822

b-1) Fv = 77570

b-2 Fv = 83878

Explanation:

b-1) Future value:

S= Sum of amount of annuity=?

n=number of fixed periods=5 years

R=Fixed regular payments=13200

i=Compound interest rate= .081 (suppose annualy)

we know that ordinary annuity:

S= R [(1+i)∧n-1)]/i

= 13200[(1+.081)∧5-1]/.081

=13200(1.476-1)/.081

= 13200 * 5.8765

S = 77570

a.1)Present value of ordinary annuity:

Formula: Present value = C* [(1-(1+i)∧-n)]/i

=13200 * [(1-(1+.081)∧-5]/.081

=13200 * (1-.6774)/.081

=13200 * (.3225/.081)

=52549

a.2)Present value of ordinary Due:

Formula : Present value = C * [(1-(1+i)∧-n)]/i * (1+i)

= 13200 * [(1- (1+.081)∧-5)/.081 * (1+.081)

= 13200 * 3.9822 * 1.081

= 56822

b-2) Future value=?

we know that: S= R [(1+i)∧n+1)-1]/i ] -R

= 13200[ [ (1+.081)∧ 5+1 ]-1/.081] - 13200

= 13200 (.5957/.081) -13200

= (13200 * 7.3544)-13200

= 97078 - 13200

= 83878

5 0

3 years ago

When a third party knows that an agent is acting on behalf of a principal, but does not know the identity of the principal, the

Amanda [17]

Partially disclosed or unidentified

5 0

3 years ago

During 2016, Burr Co. made the following expenditures related to the acquisition of land and the construction of a building:

Colt1911 [192]

Answer:

$64,000 and $358,000

Explanation:

The computation is shown below:

For land:

= Purchase price of land + Legal fees for contracts to purchase land + Demolition of old building on site - Sale of scrap from old building

= $60,000 + $2,000 + $5,000 - $3,000

= $64,000

For building:

= Construction cost of new building (fully completed) + Architects’ fees

= $350,000 + $8,000

=$358,000

8 0

4 years ago

Perdue Company purchased equipment on April 1, 2014, for $270,000. The equipment was expected to have a useful life of three yea

otez555 [7]

Answer:

Straight line:

2014 $ 65,250

2015 $ 87,000

2016 $ 87,000

2017 $ 21,750

units-of-output method:

2014 $ 108,750

2015 $ 79,750

2016 $ 58,000

2017 $ 14,500

dobule declining method

2014 135,000

2015 45,000

2016 15,000

2017 9,000

Explanation:

Straight line:

(cost - salvage value) / useful life

(270,000 - 9,000)/3 = 87,000 per complete year

First year: from April 1st to December 31th

87,000 x 9/12 = 65,250

Second and third year are complete year thus, 87,000

fourth year: from Jan 1st to March 31th:

87,000 x 3/12 = 21,750

units-of-output method:

(cost - salvage value) / unit of output

261,000 / 18,000 = 14.5 per hour

We multiply each year hours by this rate

7,500 x 14.5 = 108,750

5,500x 14.5 = 79,750

4,000x 14.5 = 58,000

1,000 x 14.5 = 14,500

double declining

we multiply by twice the rate of of straight line:

1/3 x 2 = 2/3 we depreciate this amount of the carrying vbalue per year

Last year we adjust to obtain the residual value

Year Beginning Rate Dep expense Carrying value

2014 270,000 0.50 135,000 135,000

2015 135,000 0.67 90,000 45,000

2016 45,000 0.67 30,000 15,000

2017 15,000 6,000 9,000

5 0

3 years ago

Which of the following islare true using the specific, economic, definition

marissa [1.9K]

Answer:

II. A person is unemployed when they do not have a job, are able to work, and are actively looking for a job.

Explanation:

A person without a job must be actively looking for work to be counted as unemployed and willing/able to work. If not, then the person without a job is counted as being out of the labor force.

5 0

3 years ago