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Oliga [24]
3 years ago
9

Haystack, Inc. manufactures machinery used in the mining industry. On January 1, 2017 it leased equipment with a cost of $480,00

0 to Silver Point Co. The 5-year lease calls for a 10% down payment and equal annual payments at the beginning of each year. The equipment has an expected useful life of 5 years. If the selling price of the equipment is $780,000, and the rate implicit in the lease is 8%, what are the equal annual payments
Business
1 answer:
HACTEHA [7]3 years ago
3 0

Answer:

$175,808

Explanation:

P=R (1-(1+i)^-n)/i

Where P=780,000*90%=$702,000

R=?

i=8%

N=5 years

By putting above values in formula, we get

P=R(1-(1+.08)^-5)/.08

702,000=R*3.993

R=702,000/3.993

R=$175,808

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No entries shall be allowed for district meets which are not submitted to the director on or before the ____ day before the firs
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5 0
2 years ago
Davidson Company has a product with a selling price per unit of $100, the unit variable cost is $60, and the total monthly fixed
boyakko [2]

Answer:

Contribution margin per unit = $40

Explanation:

Provided information we have,

Selling price of unit = $100

Variable cost per unit = $60

Total monthly fixed cost = $30,000

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Contribution margin per unit = ?

Therefore, we know contribution margin per unit = Selling price per unit - Variable cost per unit = $100 - $60 = $40

Therefore, contribution for total units sold = $40 \times 1,000 = $40,000

Final Answer

Contribution margin per unit = $40

6 0
3 years ago
Archie Co. purchased a framing machine for $45,000 on January 1, 2021. The machine is expected to have a four-year life, with a
GalinKa [24]

Answer:

$12,000 and $33,000

Explanation:

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= ($45,000 - $5,000) × 4 ÷ 10

= $16,000

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= $29,000

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= ($45,000 - $5,000) × 3 ÷ 10

= $12,000

Book value as on December 31, 2022  is

= $45,000 - $12,000

= $33,000

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