Answer:$2
Explanation:
A company normally is expected to value it's inventory at the lower of cost or net realisable value. The cost price is the price on purchase of the inventory while the net realisable value is selling price less cost of sales and cost to completion.
The amount of the lower cost of market adjustment the company must make, is the difference between the new selling price of $15 and net realisable value of $13 which is $2.
Answer:
1. Future value:
2. Present value:
The goal is to find the present value of the business: $198,254.33. The future value is calculated as an intermediate step to calculate the present value.
Explanation:
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<u>1. Future value in three years</u>
- Value today: $160,000
- Value in one year with grow at 16% ⇒ multiply by 1.16
- Value in two years with grow at 16% ⇒ multiply by 1.16²
- Value in three years with grow at 16% ⇒ multiply by 1.16³
- Future value in three years: $160,000 × 1.16³ = $249,743.36
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<u>2. Present value at rate of 8% compounded annually</u>
The present value is calculated discounting the future value at the given rate:
- Present value = $249,743.36 / (1.08)³ = $198,254.33
<span>The results of the study may not represent the whole population, especially when 32 respondents came from the same place. It would be more ideal to get hundreds of respondents from each state and of different backgrounds to show that the results of the survey were legitimate instead of the results possibly being influenced by a different environmental aspect.</span>
Answer:
Minimum transfer price= $30
Explanation:
The transferring division, Division X currently has excess capacity which is equal to
<em>The total capacity - external sales = 40,000 - 35,000 = 5,000 units</em>
This implies that it can meet the sales request of division Y from the excess capacity without any opportunity cost.
In this situation, where the there is no opportunity cost associated with transfer, the minimum transfer price would be :
Minimum transfer price ≥ unit variable cost
Note that unit variable cost is $30.
<em>The unit variable cost of $30 represents the relevant cost per unit of producing a unit</em>
Minimum transfer price= $30
A price between $30 and $48 would be acceptable to both divisions
Answer:
lifetime annuity with period certain settlement option
Explanation:
Based on the specifications that Tom is looking for, he should consider the lifetime annuity with period certain settlement option. This is an annuity that pays a benefit to the annuitant until death, but with a period certain option, the estate's beneficiary will continue to receive annuity payments until the specified timeframe of the period certain expires. Which would meet the requirements that Tom is looking for.