Answer:
Present value (PV) = $1,000
Interest rate (r) =8% = 0.08
Number of years (n) = 18 months = 1.5 years
No of compounding periods in a year = 4
Future value (FV) = ?
FV = PV(1 + r/m)nm
FV = $1,000(1 + 0.08/4)1.5x4
FV = $1,000(1 + 0.02)6
FV = $1,000 x 1.1262
FV = $1,126
Explanation:
The amount to be received in 18 months is $1,126. This is obtained by compounding the present value at 8% compounded quarterly for 18 months. The formula to be applied is the formula for future value of a lump sum(single investment).
I'm guessing this is True or False
If so, the answer is False.
Answer:
The Cost of Goods Sold will be understated by $6,900 and the Sales Revenue will be understated by $2,500.
Explanation:
The sale of goods on credit will affect the Cost of sales and the Sales Revenue. The Cost of Goods Sold will be understated by $6,900 and the Sales Revenue will be understated by $2,500.
Answer:
A. Dividend is paid to current shareholders.
Explanation:
This is simply said to be the aggregate amount of all current asset and also all current liability of an investment. It is used in measuring the short term liability of a business by subtracting the current liability from the current asset.
In some cases, it can be tagged a company’s current assets, such as cash, accounts receivable, inventories of goods etc. Many companies sum their's by calculating cash plus accounts receivable plus inventories, less accounts payable and less accrued expenses. This is why it is seen to decrease when dividend is paid to current shareholders.
Answer:
$8,100
Explanation:
The home was rented for more than 14 days, you must pay taxes for the rental income
Since Lille used the house for more than 15 days herself, limits her deduction. The home cannot be treated as rental home nor personal use vacation home.
total days used = (30 x 3) + 30 = 120 days
rental days = 90/120 = 75% (this doesn't apply to mortgage interest nor real estate taxes, they are still 100% deductible)
mortgage interest and real estate taxes still qualify as personal expenses = $3,000 + $1,500 = $4,500
utilities and depreciation will be deducted only 75% = ($800 + $4,000) x 75% = $3,600
total deductions = $4,500 + $3,600 = $8,100
