C: They charge extremely high interest rates.
Answer:
a) $28 Million
b) -$24 Million
Explanation:
The first part of the question is to determine the pension liability tht should be reported in the balance sheet
To do this, we use the following formula
Projected Benefit Obligation - The Plan Assets
= $65 million - $37 Million = $28 Million
Part B) This part says to dettermine the amount JDS would report if the planned asset increase to $89 million
The formula Projected Benefit Obligation - The Plan Assets still should be used but there is a difference as follows
$65 million - $89 Million = -$24 Million
Answer:
$100,890
Explanation:
To determine the value of the debt we must calculate the present value of the note:
present value = future value of the note / (1 + interest rate)⁵
present value = $170,000 / (1 + 11%)⁵ = $170,000 / 1.11⁵ = $170,000 / 1.685
present value = $100,890
Answer:
Problem recognition
Explanation:
Problem recognition is the first stage of the purchasing process. It is at this stage that the decision-maker realises there needs to be a change from the status quo.
The next stage is information gathering. Involving researching information about the problem and sources of solution.
Next is evaluation of solutions.
Finally purchase is made.
