The accident would likely be covered under the collision insurance, which covers the policyholder's car when it collides with another car or an object (in this case it would be an object since it was a single-vehicle accident.
If you only had liability coverage, the damage would likely not be covered because liability insurance only covers the damage caused to the other person and their car, not you or your car.
This will also be added to your insurance record even though you weren't the one driving because it was your vehicle and your policy.
Answer:
depreciation for 2021 is $ 18,000
book value at December 31, 2021 is $ 27,000
Explanation:
Sum of Digits Method is a depreciation method that provides for higher depreciation to be charged early in the life of an asset with a lower depreciation in later years.
Sum of digits for the framing machine is calculated as follows :
Year Sum of Digits
1 4
2 3
3 2
4 1
Total 10
<u>Depreciation for 2021 is calculated as :</u>
= 4/10× $ 45,000
= 18,000
<u>Book value at December 31, 2021 is calculated as :</u>
=Cost - Accumulated Depreciation
=$45,000 - $ 18,000
=$ 27,000
Answer:
d) EPS cannot be calculated if a company has no preferred stock.
Explanation:
The above statement is untrue about E.P.S because the reason why 'Preferred dividend' (which is dividend on preference shares) is subtracted from Net Income, before being divided by the 'Average Number of Common Shares Outstanding' is for comparability.
Since the denominator is based on 'common shares' or 'ordinary shares', it makes sense not to include the part of income that has fallen to preferred shares.
As a matter of fact there are a lot of companies that do not have preferred stock and still report Earnings Per Share on their financial statements.
Finally, still on comparability; E.P.S helps to compare the performance of big companies that have preferred stock with small companies that do not have. Hence EPS can be calculated even when there is no preferred stock.
Answer: Interest expense = $45500
Cash outflow = $45500
Explanation:
Based on the information that were given in the question, the amounts of interest expense and cash flows from operating activities, that will be reported in the financial statements for the year ending December 31, Year 1 will be calculated thus:
Interest expense = $700,000 × 6.50%
= $700,000 × 0.065
= $45500
The interest expense of $45500 will be reported on December 31, Year 1 in the income statement and will also be reported in the cash outflow as well. Therefore,
Interest expense = $45500
Cash outflow = $45500
Answer:
Present value of payments to the bank=938.51
Explanation:
The present value of the payment to the bank are an ordinary annuity i.e equal payments made at the end of each year for 16 years.
The Present value of an ordinary annuity is calculated as follows:
![Present value =PMT*\frac{[1-(1+i)^-^n]}{i}](https://tex.z-dn.net/?f=%20Present%20value%20%3DPMT%2A%5Cfrac%7B%5B1-%281%2Bi%29%5E-%5En%5D%7D%7Bi%7D)
where PMT is the annual payment made at the end of each year=$100;
i is the interest rate or discount rate = 4%,
n=the number of years the periodic payment of 100 is to be made=12
Present value of payments to the bank = ![ 100*\frac{[1-(1+0.04)^-^1^2]}{0.04}](https://tex.z-dn.net/?f=%0A100%2A%5Cfrac%7B%5B1-%281%2B0.04%29%5E-%5E1%5E2%5D%7D%7B0.04%7D)
= 938.51
