Hello!
Time interest earned ratio=income before tax and interest expenses÷interest expenses
3=X÷40000
Solve for x
X=3×40000
X=120000 This is income before tax and interest expenses but we need to figure out earning before tax only as required so
Earning before tax=120,000−40,000
=80,000. Answer
Good luck!
Answer:
$97,000
Explanation:
The computation of capital account balance is shown below:-
capital account balance = Fair market value of Land + Equipment fair market value - Mortgage on the land
Capital account balance = $60,000 + $57,000 - $20,000
= $97,000
Therefore for computing the balance of capital account we simply added the fair market value of land and equipment fair market value and deduct the mortgage on the land and we ignore the book values as its not relevant to compute the balance of capital account.
Explanations:
The formula for future value given
deposit amount, A = 2000
deposit interest, i = 8% annually = 8/4 = 2%, compounded quarterly
compounding period = quarterly
number of periods, n = 15 years = 4*15 = 60 periods (quarters)
The future value is given by:
FV = A*((1+i)^n-1)/i
= 2000*(1.02^60/0.02)
= $228103.08 (rounded to the nearest cent).
The difference in the answer choice is probably due to the teacher's calculator does not have sufficient accuracy.
