1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
poizon [28]
3 years ago
14

On December 31, 2016, Bart Inc. purchased a machine from Fell Corp. in exchange for a noninterest-bearing note requiring eight p

ayments of $20,000. The first payment was made on December 31, 2016, and the remaining seven payments are due annually on each December 31, beginning in 2017. At the date of the transaction, the prevailing rate of interest for this type of note was 11%. Present value factors are as follows: Period Present value of ordinary annuity of 1 at 11% Present value of an annuity due of 1 at 11% 7 4.712 5.231 8 5.146 5.712 The initial value of the machine is
Business
1 answer:
iragen [17]3 years ago
8 0

Answer:

Bart Inc.

The initial value of the machine is:

= $114,240.

Explanation:

a) Data and Calculations:

Date of purchase of machine from Fell Corp. = December 31, 2016

Annual payments for a non-interest-bearing note = $20,000

Appropriate present value of the annuity due = 5.712

PV of the annual payments for 8 years = $114,240 ($20,000 * 5.712)

First payment date = December 31, 2016

Period of payments = 8 years

Prevailing interest rate for this type of note = 11%

Check from an online financial calculator:

N (# of periods)  8

I/Y (Interest per year)  11

PMT (Periodic Payment)  20000

FV (Future Value)  0

Results

PV = $114,243.93

Sum of all periodic payments = $160,000.00

Total Interest = $45,756.07

You might be interested in
Suppose the quantity demanded of a particular good increases by 30%, and (the absolute value of) the price elasticity of demand
viktelen [127]

Answer: Option (c) is correct.

Explanation:

Given that,

Quantity demanded increases by = 30%

Price elasticity of demand = 2

Therefore,

Price elasticity of demand = \frac{Percentage\ change\ in\ quantity\ demanded}{Percentage\ change\ in\ prices}

2 = \frac{30}{Percentage\ change\ in\ prices}

Percentage change in prices = \frac{30}{2}

                                                = 15%

Therefore, price of a particular good decreases by 15%.

8 0
3 years ago
The rate of return on the common stock of Flowers by Flo is expected to be 15 percent in a boom economy, 7 percent in a normal e
sertanlavr [38]

Answer:

the Expected rate of return will be 8.2%

the variance will be 0.001296

Explanation:

We will calculate the Expected Rate of Return which is the sum of the wieghted return based on their probabilities:

return of 0.15 probability 20%  =  0.03

return of 0.07 probability 70% =  0.049

return of 0.03 probability 10% =   0.003

              expected return        =   0.082 = 8.2%

Now to calculate the variance we do:

∑(rk-ERR)^2 x pk

The sum of the difference between the expected rate and the escenario rate, power two, and multiply by their posibility

(0.15-0.082)^{2}\times0.20+(0.07-0.082)^{2}\times0.70+(0.03-0.082)^{2}\times0.10

the variance will be: 0.001296

3 0
2 years ago
Wilson Inc. developed a business strategy that uses stock options as a major compensation incentive for its top executives. On J
jasenka [17]

Answer:

Wilson Inc. developed a business strategy that uses stock options as a major compensation incentive for its top executives. On January 1, 2021, 20 million options were granted, each giving the executive owning them the right to acquire five $1 par common shares. The exercise price is the market price on the grant date—$10 per share. Options vest on January 1, 2025. They cannot be exercised before that date and will expire on December 31, 2027. The fair value of the 20 million options, estimated by an appropriate option pricing model, is $40 per option. Ignore income tax.

Assume that all compensation expense from the stock options granted by Wilson already has been recorded. Further assume that 200,000 options expire in 2014 without being exercised. The journal entry to record this would include

5 0
2 years ago
Victory Corporation sold 400 shares of treasury stock for $45 per share. The cost for the shares was $35. The entry to record th
Marianna [84]

Answer:The entry to record the sale will include a Credit toPaid in Capital from  treasury stock at $4,000.

Explanation:

Journal entry to record sale of shares

Accounts and explanation          Debit                  Credit

Cash                                        $18,000

Treasury stock                                                      $14,000      

Paid in Capital from Treasury STOCK                  $4,000

Calculation

CASH = Number of  shares x Price per share

= 400 x $45=$18,000

Treasury stock = Number of  shares x Price per share

= 400 x $35=$14,000

Paid In Capital = Cash - Treasury stock= $18,000- $14,000= $4000

6 0
3 years ago
Explain why a city council meeting to discuss hiring more city employees must be open to the public, while a meeting to discuss
ad-work [718]

Answer:

The answer is because people should know who is coming into office, but they do not have the right to know why someone is being fired for private reasons.

Explanation:

It’s important for the hiring discussion to be made public by the city council since it relates to the use of public funds to compensate these additional workforces. In contrast, firing processes do not relate to incurring funds and thus the public does not need to know about the reasons of the firing.

7 0
3 years ago
Other questions:
  • Amherst City provides a defined benefit pension plan for employees of the city electric utility, an enterprise fund. Assume that
    8·1 answer
  • Which of the following best describes business impact analysis?
    10·1 answer
  • At many amusement parks, customers who enter the park after 4 p.m. receive a steep discount on the price they pay. This is a typ
    15·1 answer
  • Questions that would help Tony manage his day-to-day operations? A. What is my best-selling product? B. What is my lowest-sellin
    10·1 answer
  • Suppose income increases by 25 percent​ and, as a​ result, the quantity of a particular brand of automobile demanded​ (holding t
    6·1 answer
  • Joanna is a Master Sergeant in the U.S. Air Force. In June of 2019, her duty station changed from Offutt Air Force Base in Nebra
    12·1 answer
  • Which one of the following items is not generally used in preparing a statement of cash flows? Group of answer choices Adjusted
    12·1 answer
  • Which type of line advertisements are considered a multi advertising method?
    6·1 answer
  • This is homework form me a teacher have you drawn a cool awesome drawling
    14·1 answer
  • Net sales for a company are $250,000. Average accounts receivable are $10,000. The accounts receivable turnover for this company
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!