Answer: 6.67%
Explanation:
Return on Investment is calculated by dividing Income from operations by average total assets.
Average Total Assets = (Beginning Value + Closing Value) / 2
= (2,700,000 + 3,300,000 )/2
= 6,000,000/2
= $3,000,000
Return on Investment = Income from operations/ Average Total Assets
Return on Investment = 200,000/3,000,000
Return on Investment = 0.06667
= 6.67%
Answer:
Market value of bond = 841.14
Explanation:
Explanation:
The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV) discounted at the yield rate.
Value of Bond = PV of interest + PV of RV
The value of bond can be worked out as follows:
Step 1
Calculate the PV of interest payments
Semi annual interest payment
= 10% × 1,000× 1/2 = 50
PV of interest payment
A ×(1- (1+r)^(-n))/r
r- semi-annual yield = 14%/2 = 7%
n- 6× 2 = 12
= 50× (1-(1.07^(-12)/0.07
= 397.13
Step 2
PV of redemption Value
PV = $1000 × (1.07)^(-12)
= 444.011
Step 3
Price of bond
= 397.13
+444.01
=841.14
Market value of bond = 841.14
Answer:
1. b. $896.00
2. c. $317.20
3. a. $578.80
4. b. $67.20
5. d. $4.80
Explanation:
1. WIlliam's total earnings
40 hours at $16 = $640
8 hours at $32 = $256
Total = $896
2. WIlliam's total deductions
Income Tax $200
United Fund deduction $50
Social security tax (6% * $896) $3.76
Medicare tax (1.5% * $896) <u>$13.44</u>
Total <u>$317.20</u>
3. William's net pay
= Total earnings - Total deductions
= $896 - $317.20
= $578.80
Cash Paid is $578.80
4. Employers FICA based on Williams pay
Social Security and Medicare taxes = 7.5% * $869 = $67.20
5. Employers Federal Unemployment based on Williams pay
Federal unemployment tax = 0.8% * $600 = $4.80
Advertising sales agents typically work under the direct supervision of a manager or supervisor. True.
Initally, an advertising sales agent works under the direct supervision of a manager or supervisor. They are trained and coached by those who are experienced in the field. Once the sales agent has completed a set amount of hours (based on different agency requirements) they are no longer required to complete check-ins as often. These sales agents are then on their own most of the time by setting their own hours for work as long as they meet company goals.
Under the historical cost principle the cost of land would be recorded at: <u>d. $410,000
</u>.
<u>Explanation</u>:
<em><u>Given</u></em>:
Purchase cost of land = $350,000
Brokers commission = $25,000
Cost for demolishing old building = $35,000
Principle cost of land = ?
Principle cost of land= Purchase cost of land+ Brokers commission+ Cost for demolishing old building
= $350,000+$25,000+$35,000
= $410,000
Principle cost of land= $410,000
The correct option is <u>d.$410,000</u>.
