Answer:
PV of the growing annuity: 3,129,415.72
Explanation:
We need to solve for the present value of a growing annuity:
g 0.01
r 0.015 (18% / 12 months)
C 140,000
n 24
FV = 4,473,508.58
Now, to get the present value we solve for the present value of the future value:
3,129,415.72
Answer:
The depreciation rate is option C "0.29 per unit".
Explanation:
The given values are:
Cost of assets,
= $640,000
Salvage value,
= $60,000
Estimated units to be produced,
= 2,000,000 unit
Now,
The depreciation rate will be:
=
On substituting the values, we get
=
=
=
Answer:
B. $600
Explanation:
* Data given in the Question is inconsistent with the options provided. A similar and accurate question which has the same option as given above is attached with the answer. Following answer is made accordingly.
Data Provided in the attached question is as follow:
Office supplies balance at the end of the year = $1,200
Purchases for the period = $3,400
Expense for the period = $2,800
Inventory account balance at the beginning of the year =
Use following formula to calculate beginning balance of office supplies:
Inventory account balance at the end of the year = Inventory account balance at the beginning of the year + Purchases for the period - Expense for the period
$1,200 = Inventory account balance at the beginning of the year + $3,400 - $2,800
$1,200 = Inventory account balance at the beginning of the year + $600
Inventory account balance at the beginning of the year = $1,200 - $600
Inventory account balance at the beginning of the year = $600
