Answer:
it is true because that just makes sense to me
Answer:
Wally and Pay More Incorporated
The loan resulted in any income to Wally of $3,960 ($4,320 - $360), which would have been a cost he would have incurred had he borrowed the loan at the prevailing federal interest rate.
On the other hand, it resulted in a lost revenue (expense) of $3,960 ($4,320 - $360) which Pay More Incorporated could have earned if it had loaned it at the prevailing federal interest rate. This expense is a compensation expense.
Explanation:
Pay More's Loan to Wally = $36,000
Interest rate = 1%
Prevailing interest = $4,320
Interest paid = $360
Difference between prevailing interest and interest paid by Wally = $3,960 ($4,320 - $360).
Answer:
The maximium cost I would be willing to purchase the asset is 26.033,84 above this price the investment will not yield the 6% return.
Explanation:
We calcualte the present value of all cash flows:
annual cashflow:
15,000 revenue - 2,000 expenses = 3,000
C 3,000.00
time 20
rate 0.06
PV $34,409.7637
Pv of the 10th year investment:
Maturity $15,000.0000
time 10.00
rate 0.06000
PV 8,375.9217
present value of the cashflow
34,409.7637 - 8,375.92 = 26.033,84
Based on the cost of the truck, the residual value, and the useful life, the depreciation expense for the first year would be $1,500.
<h3>What is the depreciation expense?</h3>
This can be found by the formula:
= Miles driven in first year / Useful life x (Cost - residual value)
Solving gives:
= 15,000 / 70,000 x (8,000 - 1,000)
= $1,500
Find out more on depreciation at brainly.com/question/1287985.
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