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3 years ago

1. A gift of a particular item made in a will is known as a ________. a. gift causa mortis

Business

1 answer:

Inessa [10]3 years ago

5 0

Answer:

1. Specific Bequest

2. Residuary

3. Abatement

4. A person must have testamentary capacity and intent which means that the testator must be of a proper sound mind and legal age at the time when the will is made. The will should be in writing and duly signed by the testator.

5. Oral Will

Explanation:

1. Specific bequest is a gift of particular and specific items or assets that is named to a certain person. This is generally a gift given in a will which is mostly a personal property.

2. The remaining assets or items that is left even after all the specific gifts are given and all the due debts are paid is termed as 'Residuary' of the estate.

3. When the assets of any deceased person is not sufficient enough to pay the dues to the respective creditors and satisfy their requirements, then abatement takes place.

5. Any will that has been made orally and is not written is termed as a 'Nuncupative' will.

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A $ 1 comma 000 bond with a coupon rate of 6.2% paid semiannually has two years to maturity and a yield to maturity of 6%. If

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Answer:

As a result of a fall in interest and YTM, the bond price will increase by $15.04

Explanation:

To calculate the change in price due to fall in interest rate, we must first calculate the price of the bond before and after the fall of interest rates.

To calculate the price of the bond, we need to first calculate the coupon payment per period. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = 1000 * 0.062 * 0.5 = $31

Total periods (n)= 2 * 2 = 4

r or YTM = 6% * 1/2 = 3% or 0.03

The formula to calculate the price of the bonds today is attached.

Before Interest rates Fell

Bond Price = 31 * [( 1 - (1+0.03)^-4) / 0.03] + 1000 / (1+0.03)^4

Bond Price = $1003.717098 rounded off to $1003.72

After Interest Rates Fell

New YTM = 6% - 0.8% = 5.2% or 0.052

Semi Annual YTM = 0.052 * 0.5 = 0.026

Bond Price = 31 * [( 1 - (1+0.026)^-4) / 0.026] + 1000 / (1+0.026)^4

Bond Price = $1018.764647 rounded off to $1018.76

Change in Bond Price = 1018.76 - 1003.72 = $15.04

As a result of a fall in interest and YTM, the bond price increased by $15.04

7 0

3 years ago

Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) products.

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Answer:

Allied Merchandisers

Journal Entries:

May 3 Debit Inventory $22,000

Credit Cash $22,000

To record the purchase of goods for cash.

May 5 Debit Accounts receivable (Macy Co.) $15,000

Credit Sales revenue $15,000

To record the sale of goods on credit, terms 2/10, n/60.

Debit Cost of goods sold $11,000

Credit Inventory $11,000

To record the cost of goods sold.

May 7 Debit Sales Returns $1,500

Credit Accounts receivable (Macy Co.) $1,500

To record the return of 100 units.

Debit Inventory $1,100

Credit Cost of goods sold $1,100

To record the cost of goods returned.

May 8 Debit Sales Allowances $700

Credit Accounts receivable (Macy Co.) $700

To record the sales allowance given.

May 15 Debit Cash $12,544

Debit Cash Discounts $256

Credit Accounts receivable (Macy Co.) $12,800

To record the receipt of cash for full settlement of account.

Explanation:

a) Data and Analysis:

May 3 Inventory $22,000 Cash $22,000

May 5 Accounts receivable (Macy Co.) $15,000 Sales revenue $15,000 terms 2/10, n/60.

Cost of goods sold $11,000 Inventory $11,000

May 7 Sales Returns $1,500 Accounts receivable (Macy Co.) $1,500

Inventory $1,100 Cost of goods sold $1,100

May 8 Sales Allowances $700 Accounts receivable (Macy Co.) $700

May 15 Cash $12,544 Cash Discounts $256 Accounts receivable (Macy Co.) $12,800

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3 years ago

You plan to retire in 19 years. At the point of retirement, you want to be able to withdraw 32,877 at the end of each year forev

xz_007 [3.2K]

Since no any further contributions will be made to the retirement fund, the amount you need today is $172,014.

<h3>Calculation of Present Value and Present Value of a Perpetuity</h3>

The first step is to calculate the present value (PV) of the contribution at the point of retirement in 19 years using the formula for calculating the present value (PV) of perpetuity as follows:

PV in 19 years = CF / R ............................................. (1)

Where;

PV in 19 years = Present value (PV) of the contribution at the point of retirement in 19 years = ?

CF = Cash flow or yearly expected withdrawal = $32,877

R = Rate of return after retirement = 5.02%, or 0.0502

Substituting the values into equation (1), we have:

PV in 19 years = $32,877 / 0.0502 = $654,920.3187251

The amount you need today can be calculated using the present value formula as follows:

PV = FV / (1 + r)^n ……………………………………………. (2)

Where;

PV = Present value or the amount you need today = ?

FV = Future value or PV in 19 years = $654,920.3187251

r = rate of return prior to retirement = 7.29%, or 0.0729

n = number of years = 19

Substituting the values into equation (2), we have:

PV = $654,920.3187251 / (1 + 0.0729)^19 = $654,920.3187251 / 3.80737505803714 = $172,013.607470218

Rounding to the nearest dollar, we have:

PV = $172,014

Therefore, the amount you need today is $172,014.

Learn more about present value here: brainly.com/question/17322936.

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