Current GAAP requires that share-based compensation be expensed at the grant date of the stock options award.

Gareth bought a home for $135,000. The home gained 2. 2% in value every year for eight years until Gareth sold it. How much prof

saw5 [17]

The amount of profit made by Gareth upon the sale of the home is $26,700.

Computation:

Given,

$P$ = Principal Amount of $135,000

$i$ = interest rate of 2.20%

$n$ =number of years are 8 years

First, the value of the home at the end of the 8th year will be computed by using the formula of future value.

$\begin{aligned}\text{Future Value}&=P\times(1+i)^n\\&=\$135,000\times(1+0.022)^8\\&=\$160,672.27\end{aligned}$

Now, the profit will be computed by taking the difference of the future value of the home and the purchase price or the principal amount of the home.

$\begin{aligned}\text{Profit}&=\text{Future Value\;-\;Principal Amount}\\&=\$160,672.27-\$135,000\\&=\$25,672.27\;\text{or}\;\$25,700\end{aligned}$

Therefore, at the time of sale of the home, the amount of profit gained by Gareth is $25,700.

To know more about future value, refer to the link:

brainly.com/question/1759639

3 0

3 years ago

Bingo Land Inc. has a defined benefit pension for their employees. For the fiscal year 2019, the PBO beginning balance was $1,80

Umnica [9.8K]

Answer:

Ending balance is $152

Explanation:

The table is attached below

8 0

4 years ago

The S&H Mercantile in Luther is the only game in town for a number of items, and tries valiantly to use only the storage spa

Artemon [7]

Answer:

A. The required order cost per lot is $0.388

B. The required order cost per lot is $0.9216

Explanation:

A. According to the given data Given area of shelf space = 5 Ft * 4 Ft = 20 Sq. Ft

Let us covert it to Sq. inch

1 Ft = 12 Inches

Therefore , Area of shelf space = 20 *12 * 12 = 2,880 Sq. in

1 can of water takes 20 Sq inch of shelf space

Therefore no. of cans that the shelf space can hold = 2880 / 20 = 144 Cans

Now SH wants to store exact amount of shelf space without needing to store cans somewhere elseand hence this 144 cans becomes EOQ (Economic order Qty.)

Now we know EOQ = √(2KD) / h ----Eq. 1

EOQ = 144

K = Fixed ordering cost = ?

D = Annual demand = 8000

h = Holding cost = ?

C = Cost per can = $ 3

i = 10 % (Carrying cost as percentage of Unit cost)

h = i * C

h = 10 % * $ 3

h = $ 0.3

Substituting above in Eq. 1 and solve for K

EOQ = √ (2KD) / h

144 = √(2 * K * 8000) / 0.3

Squaring both sides we get

20,736 = (16,000 * K ) / 0.3

20,736 * 0.3 = 16,000 * K

K = 6220.8 /16000

K = $ 0.388 = Ordering cost per order

The required order cost per lot is $0.388

B. Here EOQ remains same = 144 But other parameters change

K = Fixed ordering cost = ?

D = Annual demand = 27,000

h = Holding cost = ?

C = Cost per can = $ 12

i = 20 % (Carrying cost as percentage of Unit cost)

h = i * C

h = 20 % * $ 12

h = $ 2.4

Substituting above in Eq. 1 and solve for K

EOQ =√(2KD) / h

144 = √(2 * K * 27,000) / 2.4

Squaring both sides we get

20,736 = ( 54,000 * K ) / 2.4

20,736 * 2.4 = 54,000 * K

K = 49,766.4 /54,000

K = $ 0.9216 = Ordering cost per order

The required order cost per lot is $0.9216

4 0

3 years ago

ayton Inc. reports in its Year 7 annual report, sales of $7,362 million and cost of goods sold of $2,945 million. For next year,

maks197457 [2]

Answer: $2,974.45 million

Explanation:

Cost of goods sold for Year 7 = $2,945 million

Cost of goods sold is expected to increase by 1%.

Cost of goods sold in Year 8 will be:

= 2,945 * (1 + 1%)

= $2,974.45 million

3 0

3 years ago

John kenneth galbraith said that in the past all societies had an economy of ______________; now the united states had what galb

djyliett [7]

John Kenneth Galbraith is an economist, most widely read economists and is considered to be the most well known economist. In the past, he had said that all societies had an economy of scarcity. In the present, the united states had acquired what Galbraith said, calling an economy of abundance.

6 0

3 years ago