Answer:
A. The seller would be primarily liable.
Explanation:
Subject to basis is a form of home buying options in real estate. It is a situation where the buyer takes over existing loan of a seller and make commitment to seller to continue repaying the loan to the lender.
Though the buyer will taken over the loan from the seller and make repayment to the lender, there is no legal obligation on buyer`s part that makes him/her liable to the lender. The seller still remain liable despite the the taking over. So option A is right while B to D is wrong because it`s only the seller that is primarily liable to the lender.
Empirical Question is a question that can be answered by observing and analyzing the world as it is known:
Answer:
LIFO
Explanation:
It will be the one that give higher Cost of goods sold. We also know that:
Cost of goods sold = Opening Inventory + Inventory Purchases - Closing Inventory
So this means the lower the closing inventory the higher the cost of goods sold and in time of price increases it will be more appropriate to use LIFO method which will reduce the Closing Inventory and this will increase the cost of goods sold and thus decrease in profit. This reduced profit means that the tax expense will also be lower in value.
Similarly the second attractive option will be the Weighted Average and the least attractive option would be FIFO costing method.
It can cause an influx in currency or extreme inflation depending on where it goes
Answer:
Annuity per period (A) = $2,500
Interest rate (r) = 5.5% = 0.055
Number of years (n) = 3 years
Present value (PV) = ?
The amount to be paid for the annuity
PV = A<u>(1 + r)</u>n - 1
r
PV = $2,500<u>(1 + 0.055)</u>3 - 1
0.055
PV = $2,500<u>(1.055)3 - 1</u>
0.055
PV = $2,500<u>(1.174241375 - 1)</u>
0.055
PV = $2,500 x 3.168025
PV = $7,920.06
Explanation:
The present value of an annuity equals annuity per period multiplied by present value of annuity factor at 5.5% for 3 years. In this case, the annuity per period, interest rate and number of years were provided in the question with the exception of present value. The present value becomes the subject of the formula.
