Answer:
B) $20,697.
Explanation:
For computing the accretion expense, first we have to determine the present value which is shown below:
Present value would be
= Annual cash flows × PVIF factor for five years at 10%
where,
Annual cash flows would be
= Probability × cash outflows + Probability × cash outflows + Probability × cash outflows
= 25% × $300,000 + 50% × $400,000 + 25% × $500,000
= $75,000 + $200,000 + $125,000
= $400,000
And, the PVIF would be 0.62092. Refer to the PVIF table
So, the present value would be
= $400,000 × 0.62092
= $248,368
Now the accretion expense would be
= $248,368 × 10% × 10 months ÷ 12 months
= $20,697
The 10 months are computed from March 1 to December 31 and we assume the books are closed on December 31
Answer:
A transaction that involves the investment of cash in a business is debited because
1) For a business to invest cash for their expansion, involves the reduction of finances in the available revenue or profit for the purchase of equipment, property and software for internal use, for which money has to be drawn, which is a form of b=debit
2) For an owner investing money into his business, is taken as an increase in the amount the business owes the owner, which is equivalent to amount owed the owner which has to be recorded as a debit for financial accounting
Explanation:
Answer: The final payment would be: $42919,74.
Explanation: To simplify the work we must make a timeline:
0 1 2 3 4 5 6
$6000 $6000 $6000 $6000 $6000 $6000
These would be the normal conditions of the loan.
but if instead of making the 6 payments only one is made at the end:
We must use the FV annuity formula:
6000 × 
= <u>42919,74</u>
Answer: They are Riskless
Explanation:
People invest in Treasury bills because they are sure that they will get a return. U.S. Treasury bills are the safest securities in the world and as such investors are essentially guaranteed their money back plus little interest.
This is in contrast with stocks which can bring great returns at one point and result in massive losses in another. Since 1926 for instance, there have been events that led to massive losses in the stock market such as the Great Depression, Black Monday and the Great Recession.
Through all those, the Treasury bills still gave people returns.
An investor is interested in selling 500 shares of her listed REIT. The sale will be handled in a manner that's similar to the real estate investment trusts are available on a secondary market (REITs). Prices for the vast majority of REITs traded on the NYSE are influenced by supply and demand.
What is REIT?
A firm that owns and often manages real estate or similar assets that generate income is known as a REIT. These could consist of warehouses, self-storage facilities, office buildings, commercial centers, residences, hotels, resorts, and mortgages or loans.
How does a real estate investment trust work?
The majority of REITs operate under a simple corporate structure: they lease out space, collect rent on the buildings, and then pay dividends to shareholders. Mortgage REITs finance real estate rather than owning it. The interest in their investments is how these REITs make money.
Are real estate investment trusts a good investment?
In the past, REITs have produced competitive total returns that have been based on high, dependable dividend income and long-term capital growth. They also make a great portfolio diversifier because of their very low connection with other assets, which can lower total portfolio risk and boost profits.
Learn more about REITs: brainly.com/question/20372670
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