Answer:
$100,340
Explanation:
<em>The amount of cost recorded in the asset account would be:</em>
List price $93,000
Less: Discount ($93,000*2%) $1,860
Add: Freight $3,800
Add: Installation&Testing <u>$5,400 </u>
Cost of the machine <u>$100,340</u>
Note: Insurance cost is not included in the cost of the machine
Hello~
This is TRUE. Credit which is used unwisely can lead to financial difficulties.
Answer:
a. 480
Explanation:
The computation of the economic order quantity is given below:
= 480 units
The carrying cost could be determined below:
= $4 × 25%
= $1
hence, the carrying cost is $1
Therefore the economic order quantity is 480
Thus, the correct option is a.
Answer:
The bond is sold at a premium of $1155.89 -$1000 = $155.89
Explanation:
N = 10 years * 2 semiannual =20 payments of interest
coupon interest = 7% /2 = 0.035
market interest = 5% /2 = 0.025
interest = 1000*0.035 = $35 per semiannual
Pv interest for interest = [1-1/(1+0.025)^20]0.025 = 15.89 * $35 = $545.62
Pv for capital = 1000/(1+0.025)^20 = $610
value of the Bond = 610.27+ 545.62 = 1155.89
The market rate is less than the coupon rate meaning the bond is traded at a premium
Pv factor for many years = [1-1/(1+r)^n]/r