Answer:
It will take 2.72 years and 32.64 months.
Explanation:
Future value is the sum of principal amount and compounded interest amount invested on a specific rate for a specific period of time.
Use following formula to calculate the time period.
FV = PV x ( 1+ r )^n
FV = Future value = $6,000
PV = Present Value = $4,000
r = rate of interest = 15% yearly = 15% / 12 = 1.25%
n = time period = ?
$6,000 = $4,000 x ( 1 + 1.25% )^n
$6,000 = $4,000 x ( 1.0125 )^n
$6,000 / $4,000 = ( 1.0125 )^n
1.5 = ( 1.0125 )^n
Log 1.5 = n log 1.0125
n = Log 1.5 / log 1.0125
n = 32.64 months
n = 2.72 years
Answer:
$6,100
Explanation:
Data given in the question
Accumulated benefit obligation = $45,900
Projected benefit obligation = $68,100
Fair value of the plan assets = $62,000
So, by considering the above information, the benefit plan recognized is
= Projected benefit obligation - fair value of the plan assets
= $68,100 - $62,000
= $6,100
Hence, the accumulated benefit obligation is ignored
Answer:
a. This behaviour will decrease the AD. This is because as people will start saving more, they will spend less. Due to this, AD curve will shift backwards or AD will decrease.
b. If people start saving more, they will consume less. Thus, the consumption component will reduce.
c. This will change the saving habits. This is because people will become aware of the fact that they need to save for their old age because the social security system will not be enough to meet their demands.
Answer: An ethical decision is one that engenders trust, and thus indicates responsibility, fairness and caring to an individual. To be ethical, one has to demonstrate respect, and responsibility. Ethical decision-making requires a review of different options, eliminating those with an unethical standpoint, and then choosing the best ethical alternative.
Answer:
Reverse the related expense.
Explanation:
In this scenario Muller has already realised the compensation expense for achievement of the particular target. In accrual accounting only the expenses that we have already incurred or are certainly going to incur will be recognised and recorded.
Muller has concluded that the executive will not meet the target and therefore will not the eligible for the compensation. Muller should reverse the related expense as it is unlikely it will incur it.
