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erma4kov [3.2K]
3 years ago
14

A 50 year old customer receives an inheritance of $1,000,000 which he places with an investment adviser to invest with the objec

tive of safety of principal and a moderate level of income. As of the end of the first year, the portfolio is worth $1,300,000. As of the end of the second year, the portfolio is worth $1,200,000. Ignoring compounding, the approximate annual return on investment is:
Business
1 answer:
RideAnS [48]3 years ago
7 0

Answer: 10%

Explanation:

Given that :

Worth of investment = $1,000,000

Worth after 1 year = $1,300,000

Worth after 2 years = $1,200,000

From the above, investment recorded $300,000 increase after one year and $100,000 Depreciation at the end of the second year.

Therefore, Net increase:

$300,000 - $100,000 = $200,000 (after 2 years)

Therefore, average yearly/annual increase = $200,000 / 2 = $100,000

Therefore, the annual return on the investment is :

(Annual increase / investment worth) × 100%

(100,000 : 1,000,000) × 100%

0.1 × 100% = 10%

= 10%

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Chief financial officer Barry submits travel and expense reports that are completely genuine and encourages employees in his div
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Leading by example means to act in a way that shows others how to act. Barry has led by example by submitting travel and expense reports that are genuine. This will inspire his employees or subodinates to do same.

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3 years ago
Sadler Corporation purchased equipment to be used in manufacturing. The purchase was made at the beginning of 2015 by paying cas
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The journals entry to record depreciation on the equipment for 2016 will be:

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Under straight-line method, depreciation expense is (cost - residual value) / Estimated useful life = ($150,000 - $10,000) / 10 years = $14,000 yearly depreciation expense. This applies to Years 2015 and 2016.

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3 years ago
An international children’s charity collects donations, which are used to buy clothing and toys for children in need. The charit
MatroZZZ [7]

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Required 1

<u>General Journal</u>

Cash $8,500 (debit)

Donations Revenue $8,500 (credit)

<em>Cash and Checks received as Donation Revenue</em>

<em />

Wages Expenses $3,000 (debit)

Cash $3,000 (credit)

<em>Wages to employee paid</em>

<em />

Note Payable $3,420 (debit)

Cash $3,420 (credit)

<em>Repayment of Short Term Loan</em>

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Supplies $4,920 (debit)

Cash $2,080 (credit)

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Donations Revenue $4,020 (credit)

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<u>Calculation of Charity’s preliminary net income.</u>

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Less Expenses :

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3 years ago
Parole violators account for more than half of prison admissions in many states.
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