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4 years ago

A purchase of an asset on account increases cash. decreases owner's equity. increases assets. decreases expenses

1 answer:

7 0

<span>A purchase of an asset on account increases assets. The assets account is increased due to the new addition of purchased asset. It also increases the liability section because it was purchased on account. Any purchase, addition or acquisition of assets will increase the assets account while any removal or disposal of assets decreases it.</span>

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5 0

2 years ago

you have $500,000 saved for retirement. your account earns 4% interest. how much will you be able to pull out each month, if you

Hoochie [10]

With $500,000 retirement saving, the amount that can be withdrawn monthly over 20 years is $3,029.

The amount withdrawn each month can be computed using formula for the present value of an annuity.

P = PMT . [(1 - (1 + r)ⁿ] / r

Where:

P = present value

PMT = the amount of money withdrawn at each period.

r = interest rate

n = number of periods in which withdrawal or payment will be made.

The withdrawal is monthly, hence, we need to divide the annual interest rate by 12.

r = 0.04/12 = 0.0033

Number of periods in which withdrawal or payment will be made is equal to 20 years times 12 months:

n = 12 x 20 = 240

The present value is the saving, that is:

P = $500,000

Substitute those parameters into the formula and solve for PMT.

P = PMT . [(1 - (1 + r)ⁿ] / r

500,000 = PMT [(1 - (1 + 0.0033)²⁴⁶] / (0.0033)

PMT = $3,029

Therefore, for the give scheme, the amount to be pulled out monthly is $3,029.

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5 0

1 year ago

Using the Du Pont method evaluate the effects of the following relationships for the company.

hammer [34]

Answer:

Explanation:

A. Profit margin*Total asset turnover=Return on assets(investment)

0.07*TAT=25.2

TAT=360

B. Return on equity=Return on assets/(1-debt/assets)=25.2/(1-0.5)=50.40%

C. Return on equity=Return on assets/(1-debt/assets)=25.2/(1-0.35)=38.77%

3 0

3 years ago

Ariana and John, who file a joint return, have two dependent children, Kai and Angel. Kai is a freshman at State University and

mihalych1998 [28]

The amounts and types of education tax credits that Ariana and John can take without modified AGI limitation are as follows:

Amount of Education Tax Type of Education Tax Credits

For Kai $1,000 ($2,500 x 40%) The American Opportunity Credit

For Angel $1,560 ($7,800 x 20%) The Lifetime Learning Credit

Total tax credit = $2,560 ($1,000 + $1,560)

<h3>What are the American Opportunity Credit and the Lifetime Learning Credit?</h3>

Whereas the American Opportunity Credit (Kia's) covers only the first 4 years of post-secondary education at 40% of $2,500 per student because Kia is a half-time student, the Lifetime Learning Credit applies to graduate schooling (Angel's) and covers 20% of the first $10,000 paid for tuition.

We must note that no taxpayer can claim both the American Opportunity Credit and the Lifetime Learning Credit for the same student in the same tax year.

Thus, the total education tax credit that Ariana and John can claim for both Kai and Angel is $2,560.

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6 0

2 years ago

Brazilians use doughnuts as a snack item whereas americans tend to associate doughnuts with breakfast; electrical voltages diffe

TiliK225 [7]

<span>Is called adaptation strategy. Adaptation is the process of modifying an existing product so it is suitable for different customers or markets. An adaptation strategy is important for companies, because it ensures that the product meets local cultural and regulatory requirements.</span>

5 0

3 years ago