A tenant whose apartment has just been converted to cooperative ownership
Answer:
devopment expense 4,000,000
software package depreicaiton expense 2,000,000
training employees expense <u> 50,000</u>
Total expenses 6,050,000
Explanation:
the cost before the knowledge of future benefit will come for the development of the software is treated as expense. The reasoning behind this is the potential uncertainty about the furture at this time. The company didn't know about the likelihood of future benefits.
The toher 8,000,000 million will be amortize over a 4-year period:
8,000,000 / 4 = 2,000,000 depreciation expense
The training wil be considered expense for the period.
Answer:
17%
Explanation:
Purchase price of bond = $921.77
Years investment held = n = 7
Coupon rate = C = 15%
Frequency of payment = m = 2
Annual coupon = $1,000 × (0.15/2) = $75.00
Realized Yield = i
Selling price of bond = PB = $961.22
The realized rate of return is approximately 16.6 percent. Using a financial calculator provided an exact yield of 16.625 percent.
