Interest capitalization is defined as the unpaid interest when added to the principal amount of the loan. It increases the overall cost of the loan.
Bianca will have to pay $13.43 monthly to avoid interest capitalization.
Given that:
Principal value of loan = $2600
Maturity Time = 10 years = 120 months
Interest rate = 6.2% = 0.062
Now, to find the amount of payment by using the formula:
Total payment that is to be paid in 1 year:
Thus, the payment that Bianca has to pay is $13.43.
To know more about interest capitalization, refer to the following link:
brainly.com/question/417585
Answer:
$4,455
Explanation:
The computation of total decrease in earnings (pretax) in Morris Dec. 31, 2021, income statement is given below:-
Interest expense upto 31 Dec 2021 = (Total present value of lease payment - Lease payment on July 1, 2021) × 6% × 6 ÷ 12
= ($58,500 - $7,500) × 6% × 6 ÷ 12
= $51,000 × 6% × 6 ÷ 12
= $1,530
Depreciation expense upto 31 Dec 2021 = Fair value of equipment ÷ Useful life × 6 ÷ 12
= $58,500 ÷ 10 × 6 ÷ 12
= $5,850 × 6 ÷ 12
= $2,925
So, the total decrease in earnings (pretax) in Morris Dec. 31, 2021, income statement = Interest expense upto 31 Dec 2021 + Depreciation expense upto 31 Dec 2021
= $1,530 + $2,925
= $4,455
The primary distinction between expenses and losses is that costs are incurred in order to produce income, whereas losses are often associated with any other activity. the sale of an asset with a long lifespan for less than its book value. a negative verdict in a lawsuit brought against the business.
The cancellation of bonds that are payable at a cost higher than their carrying value An expense is a business's operational cost incurred to produce income. It may deduct tax-deductible expenses on its income tax returns. Either the cash basis approach or the accrual method is used by accountants to record expenses.
To learn more about expenses, click here.
brainly.com/question/14514813
#SPJ4
Answer:
Using break-even analysis in your feed and grain business can help you understand and examine the profit drivers of your business. It is a very useful tool that can help you understand how much you need to sell to cover your costs and how pricing, cost, and volume changes impact these needed sales.
Answer:
$5,000 realized, but not recognized loss
Explanation:
Based on the above information given we were told that two years earlier She purchased some shares for the amount of $15,000 in which in order for her to offset few of her gains she sells those 100 shares of Bear Corporation for the amount of $10,000 making her to REALIZED the amount of $5,000 ($15,000-$10,000) reason been that a loss will be realized instantly in a situation were an assets is sold out for a loss.
Therefore the tax consequences to Andrea this year will be the amount of $5,000 Realized, but not recognized loss.
