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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

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Answer:

(D) $ 4,950

Explanation:

The computation is shown below

As We know that

Ending work in process inventory = Opening work in process inventory + total manufacturing cost - cost of goods manufactured

where,  

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So, the opening work in process inventory would be

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So, the opening work in process is

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7 0
3 years ago
Sometimes you find yourself getting off-task because your boss keeps piling on the work, and you aren't sure what to prioritize.
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sergejj [24]

Answer:

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3 years ago
Caron turned down the extra project her boss offered because the pay for completing it was ten lottery tickets. caron expected a
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Accounts receivable from sales transactions were $45,427 at the beginning of the year and $61,370 at the end of the year. Net in
ZanzabumX [31]

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3 years ago
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