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atroni [7]
3 years ago
14

Pensacola Inc. exchanged old equipment for new equipment in two exchange transactions. Each transaction has commercial substance

. Old Equipment Cash Book Value Fair Value Received Equipment A $ 73,400 $ 81,100 $ 11,800 Equipment B $ 60,600 $ 54,400 $ 9,500 For Equipment A, Pensacola would record the new equipment at:
Business
1 answer:
gayaneshka [121]3 years ago
7 0

Answer:

$69,300

Explanation:

The computation of the amount of the new equipment for equipment A is shown below;

Since the transaction has the commercial substance and also the cash is received

So, the amount of the new equipment is

= Fair value - cash received

= $81,100 - $11,800

= $69,300

Hence, the amount of the new equipment is $69,300

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Which of the following taxes are paid by the employee and the employer?a. FUTAb. SUTAc. FICAd. Federal withholding taxes
Basile [38]

Answer:

The correct answer is letter "C": FICA.

Explanation:

FICA (<em>Federal Insurance Contributions Act</em>) tax is a mandatory deduction taken from employees' payment to cover elder American's Social Security and Medicare. It is a 12,4% deduction financed by two parts: half of that amount is taken from the worker's paycheck and the other half is paid by the employer.

7 0
3 years ago
Sam closed the doors to her home-based consulting company only two years after opening because she was tired of working 80-hour
blondinia [14]

Answer:

There is sacrifice to having your own business. Sam wasn't ready to invest the hours needed to make it on his own.

Explanation:

There are many advantages to opening a new business. When you are an entrepreneur it is easy to get lost in all the benefits and don't pay attention to many os its disadvantages.

A big disadvantage is that you are always at work, you are working everywhere at all times. There are no off days, if you’re not working, then you’re not earning. You don’t need to be engaged 24/7 to have a chance at success in the world of entrepreneurship, but you will be working a lot more often.

Most people who find success in the world of entrepreneurship are working longer, harder days than the average “traditional” employee. You do have some flexibility when putting in those hours, so you can structure medical appointments, school visits, and other family needs within your day. You do not have the luxury of cutting back on your hours most days.

There is sacrifice to having your own business. Sam wasn't ready to invest the hours needed to make it on his own.

3 0
3 years ago
Students in mr. mckay's class are generating ideas about ways to deal with the problem of limited resources for the homeless hig
Vlad [161]

The approach that Mr. McKay is using in the setting is the problem based learning. The PBL or the Problem based learning is defined as a student centered pedagogy by which students are likely to learn a particular subject based from the experience of having to solve open ended problem found in a material that triggers it.

5 0
3 years ago
You are evaluating an investment that will provide the following cash flows at the end of each of the following years: year 1, $
stealth61 [152]

Answer:

$37,680.95

Explanation:

The maximum i would be willing to pay is the present value of the cash flows

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1 = $12,500

Cash flow in year 2 = $10,000

Cash flow in year 3 = $7,500

Cash flow in year 4 = $5,000

Cash flow in year 5 = $2,500

Cash flow in year 6 = 0

Cash flow in year 7   $12,500

I = 9%

PV = $37,680.95

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

3 0
3 years ago
Present Value of Ordinary Annuity Period/Rate 5% 6% 7% 8% 9% 10 7.7217 7.3601 7.0236 6.7101 6.4177 11 8.3064 7.8869 7.4987 7.139
klasskru [66]

Answer:

The discount rate of 8% for 11 year period provides the present value of annual cash flows to be equal to the initial investment.

Explanation:

Using the table of present value of annuity provided, we can check the rate and time period which is return the present value of cash flows from the project to be equal to initial Investment.

We are told that the Project's life is expected to be 11 Years. Thus using the 11 year period from the table we can see the following rates,

<u>11 Year Period</u>

Rate = 5%  ,  Annuity Factor = 8.3064  

Rate = 6%  ,  Annuity Factor = 7.8869

Rate = 7%  ,  Annuity Factor = 7.4987

Rate = 8%  ,  Annuity Factor = 7.1390

Rate = 9%  ,  Annuity Factor =  6.8052

We know that the annual cash flows from the project is $1,000,000 and we know the Initial Outlay is $7,139,000.

Multiplying the annual cash flow from the above annuity factors for each rate we can see which rate provides the present value of annual cash flows to be equal to initial outlay.

Rate = 5%  ,  Present value = 8.3064 *  1000000    = $8,306,400  

Rate = 6%  ,  Annuity Factor = 7.8869 *  1000000    = $7,886,900

Rate = 7%  ,  Annuity Factor = 7.4987 *  1000000    = $7,498,700

Rate = 8%  ,  Annuity Factor = 7.1390 *  1000000    = $7,139,000

Rate = 9%  ,  Annuity Factor =  6.8052 *  1000000    = $6,805,200

From the above calculation we can see that the rate of 8% provides the present value of annual cash flows to be equal to the initial investment.

7 0
3 years ago
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