Answer:
$115,302.71
Explanation:
During the first year, the monthly payments were $505.92, and at the end of the year, the principal's balance was $117,494.70.
Then the interest rate increases to 4%, and your monthly payment also increases to $570.72. At the end of year 2, the principal's balance is $115,305.96 (see amortization schedule).
you can determine the monthly payment by using an annuity formula:
original monthly payment = $120,000 / 237.18938 (PV annuity factor, 0.25%, 360 periods) = $505.9248437 ≈ $505.92
adjusted monthly payment (second year) = $117,494.70 / 205.86942 (PV annuity factor, 0.3333%, 348 periods) = $570.7243941 ≈ $570.72
Answer:
Depreciation expense in 2021 =$2420.50
Depreciation expense in 2019 = $1442
Explanation:
The following steps would be taken to determine the answer
1. Calculate depreciation expense given the initial information
2. calculate the accumulated depreciation by the second year. Accumulated depreciation is sum of depreciation expense
3. subtract the accumulated depreciation from the cost price of the asset. This would give the book value
4. calculate the depreciation expense using the new information and the book value
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($8,240 - $1030) / 5 = $1442
Accumulated depreciation by January 2021 = $1442 x 2 = $2884
Book value = $8,240 - $2884 = $5356
New useful life = 2 years
Salvage value = $515
Depreciation expense in 2021 = ($5356 - $515) / 2 = $2420.50
Some tax is paid only by people who benefit from a government program or service, such as a toll road. This approach to determining who should pay taxes follows the benefits-received principle.
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Explanation:</u></h3>
The principle called Benefits-Received states that the amount of tax that is to be payed by an individual is directly proportional to the amount of benefits that is being received by the individual from the government. Those people who receives services from the government resources pay tax to the government for those benefits.
The main objective of this type of principle is to bring fairness among the public in paying taxes based on the benefits that receive from the services and the resources of the government. This is different from the ability to pay principle. In this principle, those people who can afford to pay more will be paying more taxes to the government.
