Answer:
$16,335.90622
Explanation:
The computation of the additional income earned is shown below:
For 40 years
Future value = Present value × (1 + rate of interest)^number of years
= $1,500 × (1 + 0.065)^40
= $18,624.1118
For 50 years
Future value = Present value × (1 + rate of interest)^number of years
= $1,500 × (1 + 0.065)^50
= $34,960.01802
Now the additional amount is
= $34,960.01802 - $18,624.1118
= $16,335.90622
Answer:
a. 12% per year
Explanation:
Effective interest rate
r = (1 + i/n)^n - 1
r = effective interest rate
i = simple interest rate compounded monthly
n = number of compound intervals
12.68% = ((1+i/12)^12)-1)
1+0.1268 = ((1+i/12)^12)
1.1268^(1/12) =1+i/12
1.010 = 1+i/12
1.010-1 = i/12
0.010 x 12 = i
i = 0.12 = 12%
Answer:
$117,201
Explanation:
Calculation for what The cost basis recorded in the buyer's accounting records to recognize this purchase is
Using this formula
Cost basis=Cash+Note payable+Mortgage
Let plug in the formula
Cost basis=$32,829+$26,957+$57,415
Cost basis=$117,201
Therefore The cost basis recorded in the buyer's accounting records to recognize this purchase is $117,201
Answer:
The correct answer is A. True.
Explanation:
Derived demand is the demand for goods and services that is generated as a result of the demand for other goods and services. This type of demand usually corresponds to the demand for factors or products, since the demand for a good or service may be related to the process necessary to produce another good or service, although it can affect both producers and consumers.
Derived demand can sometimes lead to an increase in the price of a marginal product, since the demand for the resources needed to produce a physical product also increases.
The elasticity of the demand for a productive factor depends on the characteristics of the good. This dependency is explained through Marshall's laws:
- Replaceability, elasticity is greater the more easily one factor can be substituted for another in the production process.
- The elasticity of the demand for a factor will be greater the more elastic the demand for the good it produces. If the demand for the product varies, so will the demand for the factor.
- The elasticity of demand for the factors also depends on the elasticity of the other factors involved in the production process.
- Demand for the factor will be less elastic the lower its cost compared to the total cost of production.
Answer:
Dynamic Weight Loss Co.
DYNAMIC WEIGHT LOSS CO.
Classified Balance Sheet as of June 30, 20Y7
Assets
Current Assets:
Cash $119,630
Accounts Receivable 26,100
Prepaid Insurance 8,400
Prepaid Rent 6,000
Supplies 11,200
Total current assets $171,330
Long-term Assets:
Land 375,000
Equipment 325,900
Accumulated Depreciation (32,600) 293,300
Total long-term assets $668,300
Total assets $839,630
Liabilities and Equity
Current Liabilities:
Accounts Payable $10,830
Salaries Payable 7,500
Unearned Fees 21,000
Total current liabilities $39,330
Equity:
Common Stock 180,000
Retained Earnings 620,300
Total equity $800,300
Total liabilities and equity $839,630
Explanation:
a) Data and Calculations:
Trial Balance as of June 30, 20Y7
Account Titles Debit Credit
Cash $119,630
Accounts Receivable 26,100
Prepaid Insurance 8,400
Prepaid Rent 6,000
Supplies 11,200
Land 375,000
Equipment 325,900
Accumulated Depreciation - Equipment $32,600
Accounts Payable 10,830
Salaries Payable 7,500
Unearned Fees 21,000
Common Stock 180,000
Retained Earnings 620,300
Total $872,230 $872,230
