1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alja [10]
3 years ago
7

Young Corp. purchased equipment by making a down payment of $4,000 and issuing a note payable for $18,000. A payment of $6,000 i

s to be made at the end of each year for three years. The applicable rate of interest is 8%. The present value of an ordinary annuity factor for three years at 8% is 2.58, and the present value for the future amount of a single sum of one dollar for three years at 8% is .735. Shipping charges for the equipment were $2,000, and installation charges were $3,500. What is the capitalized cost of the equipment?
Business
1 answer:
Vera_Pavlovna [14]3 years ago
3 0

Answer:

Total capitalized cost  24,980

Explanation:

The shipping and installation cost are capitalzied as they are cost needed to make the equipment ready to use.

The down payment will be in his full amount as it is done "today".

The the note, which is an annuity will be multiplied by the annuity factor

and the note

down payment:               4,000

shipping charges            2,000

installation                       3,500

6,000 annuity x 2.58 = <u> 15,480  </u>

Total capitalized cost  24,980

You might be interested in
In a recent year hart corporation had net income of $125,000, interest expense of $30,000, and tax expense of $40,000. what was
makkiz [27]

Net income = $125,000

Interest expense = $30,000

Tax expense = $40,000

Interest times hart corporation earned for the year = ?

First add all the expenses and then divided by interest expense to get interest times.

= ($125,000 + $30,000 + $40,000) / $30,000

= $195,000 / $30,000

<span>= 6.5 </span>

4 0
3 years ago
Consider the market for loanable funds. Suppose that savers make deposits in savings accounts at banks. Initially, the interest
tiny-mole [99]

Answer:

A: The supply of loanable funds curve

B: left

C: Increase

Explanation:

If the tax rate on interest earned on savings deposits rises to 25% then the <u><em>supply of loanable funds curve</em></u> will shift to the <u><em>left </em></u>causing the equilibrium interest rate to <u><em>slide upwards (or increase). </em></u>

The supply curve for loanable funds slopes upwards from left to right. This means that when interest rates are high, lenders are more willing to lend more funds to investors and businesses. The intersection of the demand and supply curves for loanable funds creates the equilibrium interest rate.

Cheers!

8 0
3 years ago
The primary purpose of a career assessment test is to
ser-zykov [4K]
<span>Suggest careers for which the subject might be well suited.</span>
6 0
3 years ago
Leakages and injections Suppose the economy is initially in equilibrium, when a decrease in decreases total leakages out of the
leonid [27]

Answer:

<em>Suppose the economy is initially in equilibrium, when a decrease in</em><em> </em><u><em>Savings </em></u><em>decreases total leakages out of the economy. </em>

Savings are considered leakages in the economy because the represent money that is not spent but rather saved.

<em>Which of the following will occur as a result of this change?</em>

<em>GDP rises above planned spending.</em>

Savings reduces spending but as savings have reduced, there will be more spending which is unplanned and so this increase in unplanned spending will make GDP higher than planned spending.

Injections and leakages are equal to each other <u>when real GDP is equal to aggregate expenditure. </u>

Injections and leakages are equal when the output (GDP) and the Aggregate expenditure are the same.

3 0
2 years ago
Morgan Stanley's wealth management unit offers to invest profits of $750,000 made by an artist on a world tour at 7% compounded
Elden [556K]

Answer:

$171,941

Explanation:

Cash out = $921,941. 2. Interest earned by the investment = $171,941.

4 0
2 years ago
Other questions:
  • Matthew Liotine‘s Dream Store sells beds and assorted supplies. His best-selling bed has an annual demand of 400 units.Ordering
    7·1 answer
  • At the present time, Perpetualcold Refrigeration Company (PRC) has 10-year noncallable bonds with a face value of $1,000 that ar
    5·1 answer
  • What is the best suited structure for development teams in order to produce integrated increments?
    9·2 answers
  • The ________ is a set of phases that temporary groups go through that involves transitions between inertia and activity.
    12·1 answer
  • Which accounting course focus on the preparation of external financial statements by applying generally. Accepted accounting pri
    15·1 answer
  • Templates often speed up the process of server administration, explain how would you make sure you get as much benefit of your g
    11·1 answer
  • A supervisor who believes an employee's grievance is not a contractual violation should: accept the employee's grievance, and th
    13·1 answer
  • Perry Partnership distributed cash of $15,000 and a parcel of land in a liquidating distribution to Gupta, a partner. The land h
    5·1 answer
  • The ""Relevant Skills and Accomplishments"" section is typically included only in ______________ resumes.
    10·1 answer
  • Patriot Company produces flak jackets for military use. The company recently adopted a standard costing system and set the follo
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!