Answer: PMI will automatically be dropped when the balance reaches $117,000.
Explanation: PMI stands for private mortgage insurance. This is an insurance policy that banks often require lenders to have when they do not have a 20% down payment on a new home.
PMI is automatically dropped with the amount of the mortgage due is reduced to 78% of the original appraised value of the home. In this case, the home was originally purchased for $150,000. 78% x 150,000 = $117,000. When the loan reaches $117,000 the pmi will automatically be dropped.
Answer:
Vaughn Company
The weighted-average cost per unit is
= $8.04
Explanation:
a) Data and Calculations:
Units Unit Cost Total
Inventory, January 1 11,000 $8.80 $96,800
Purchases: June 18 5,000 8.00 40,000
November 8 4,000 6.00 24,000
Total 20,000 $160,800
The weighted-average cost per unit = $8.04 ($160,800/20,000)
b) The weighted average method of recording inventory adds up the total units and costs of beginning and current period purchased or manufactured inventory. The total costs are divided by the total units to obtain the weighted-average cost per unit.
Answer:
D) 137000 39000
Explanation:
Allen 140,000
Daniel 40,000
Capital before admission 180,000
share ratio 3:1
Capital after admission:
180,000 + 40,000 = 220,000
David participation: 20%
220,000 x 20% = 44,000
David investment 40,000
goodwill: 4,000
There is a difference in goodwill which will be supported for the old partner as their current share ratio
Allen 4,000 x 3/4 = 3,000
Daniel 4,000 x 1/4 = 1,000
Capital after David admission:
140,000 - 3,000 = 137,000
40,000 - 1,000 = 39,000
