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umka21 [38]
3 years ago
9

Adams Bautista needs $26,700 in 8 years. Click here to view factor tables

Business
1 answer:
alexandr1967 [171]3 years ago
4 0

Answer:

a. $10,783.68

b. $10,510.36 semi annual compounding

Explanation:

a. This question requires the present value of $26,700 given 8 years and compounded annually at 12%.

Present Value = \frac{Future Value}{ ( 1 + interest)^{number of periods} }

Present Value = \frac{26,700}{ 1.12^{8} }

Present Value = $10,783.68

He would need to invest $10,783.68 today.

b. This is a duplicate of question 1 but I will solve it assuming semi-annual compounding just in case.

12% per annum would become = 12/2 = 6% per semi annum

Number of periods would become = 8 * 2 = 16 periods

Present Value = \frac{Future Value}{ ( 1 + interest)^{number of periods} }

Present Value = \frac{26,700}{ 1.06^{16} }

Present Value = $10,510.36

He would need to invest $10,510.36 today.

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Answer:

North American Courier Corporation

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Jan. 1, 2021:

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Explanation:

A transaction qualifies for sale and leaseback accounting under ASC 840 when an entity has determined if the transfer of the underlying asset meets the definition of a sale under ASC 606 Revenue from Contracts with Customers.   The two key criteria which can be used by an entity to determine this, are as follows:

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We believe that the criteria are met.  Since this transaction qualifies for sale and leaseback accounting under the old ASC 840, the accounting for the Seller-lessee (North American Courier Corporation) is:

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3. Recognize gain or loss in full, subject to any off-market terms

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Answer:

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Answer: True

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