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mestny [16]
4 years ago
12

Julie has just retired. Her company’s retirement program has two options as to how retirement benefits can be received. Under th

e first option, Julie would receive a lump sum of $157,000 immediately as her full retirement benefit. Under the second option, she would receive $20,000 each year for 6 years plus a lump-sum payment of $65,000 at the end of the 6-year period. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables.
Required:
1-a. Calculate the present value for the following assuming that the money can be invested at 12%.
1-b. If she can invest money at 12%, which option would you recommend that she accept

Business
1 answer:
djverab [1.8K]4 years ago
7 0

Answer:

Please see attachment.

Explanation:

Please see attachment.

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Under the equity method of accounting for investments, an investor recognizes its share of the earnings in the period in which t
Sphinxa [80]

Answer: Earnings are reported by the investee in its financial statements

Explanation:

Equity method is when investments are being treated in associate companies and it is usually applied in cases whereby an investor entity holds about twenty to fifty percent of the associate company's voting stock. Due to this reason, it has a strong say in the associate company's management.

Under the equity method of accounting for investments, an investor recognizes its share of the earning in the period in which the earnings are reported by the investee in its financial statements.

8 0
3 years ago
What is the name of the document that comes with your paycheck and
Serga [27]

Answer:

A Paystub.

Explanation:

Paystub or payslip is the document that shows the amount that an employee earned in a particular month and the deductions made. Therefore, a  paystub indicates the total earning or gross pay, the total deductions, and the net pay.  

The paystub shows each earning and deduction on its line. In other words, the paystub show itemized details of all earnings and deductions.

3 0
3 years ago
A company's inventory balance at 12/31/16 was $191,600 and $204,000 at 12/31/15. its accounts payable balance at 12/31/16 was $8
Ahat [919]
Company
Dec. 31. 2016
Assets
Cash- $191,600

Dec. 31. 2015
Assets
Cash- $204,000

Goods sold for 2016- $724,000

Liabilities
Dec. 31.2016
Accounts Payable- $88,000

Liabilities
Dec. 31. 2015
Accounts payable- $83,600

In order to find the company's total amount of cash payments for 2016, you find the minus the previous assets with the new assets..
Ex. $191,600 - $204,000 = -12,400

Then minus your answer with Goods Sold in 2016
Ex. $724,000 - $12,400 = $711,600

Then, minus the pervious amount of Accounts payable with the new Accounts Payable
Ex. $88,000 - $83,600 = $4,400

New payments for 2016-
Ex. Add $88,000 + $83,600 = $171,600

Then, $171,600 - $4,400 = $167,200

Thus, $167,200 equals the company's total amount of cash payments 2016.
3 0
3 years ago
A 16-year, $1,000 par value zero-coupon rate bond is to be issued to yield 6 percent.
Solnce55 [7]

Answer:

a) $393.65

b) $458.11

c) $217.63

Explanation:

Given data:

16-year  ( n )

$1000 par value  ( FV )

6% ( R )

A) determine the initial price of the bond

 = FV / ( 1 + R ) ^ n

= 1000 / ( 1.06 ) ^ 16

= 1000 / 2.5403 = $393.65

B ) when interest rate drops to 5% determine the value of the zero-coupon rate of bond

 = FV / ( 1 + R ) ^n

 = 1000 / ( 1.05 ) ^ 16

 = 1000 / 2.1829  = $458.11

C ) when interest rate increases to 10% determine the value of the zero-coupon rate of bond

=  Fv / ( 1 + R ) ^ n

=  1000 / ( 1.1 ) ^ 16

= 1000 / 4.5950 = $217.63

7 0
3 years ago
Trek Company has the following production data for April : units transferred out 40,730, and ending work in process 6,020 units
Strike441 [17]

Answer:

                                                     Cost assigned

                                                               $

Transferred  out                             610,950

Work in Progress                            57,792

Explanation:

Cost assigned = cost per equivalent units × Number of equivalent units

Equivalent units = Degree of completion × units

The cost per unit for each expenditure type has been given so we need to determine the equivalent unit

The equivalent units for work in progress and units transferred would be worked out using the table below:

Equivalent units

                                           Material                   Conversion cost

Transferred out    100%× 40,730= 40,730            100%×40,730= 40,730

Work in Progress 100%× 6020 =6,020                 40%× 6020 =    2,408

Cost assigned:

                                  Material                   Conversion cost       Total

Transferred out         (40,730 ×$6)     +       ( 40,730  ×$9)=         610,950

Work in progress        (6,020× $6)    +        (2,408  ×$9) =             57,792

                                                      Cost assigned

                                                               $

Transferred  out                             610,950

Work in Progress                            57,792

     

5 0
3 years ago
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