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slega [8]
3 years ago
9

In two years, you will receive the 1st payment from an irrevocable trust your grandparents set up. The trust is set up make paym

ents forever. The appropriate discount rate is 2.0%. The 1st payment is for $500 and the payments will increase by 1.0% per year every year thereafter. The present value of all the future trust payments is closest to:
Business
1 answer:
NikAS [45]3 years ago
6 0

Answer:

$50,000

Explanation:

Note: There is an assumption that the payment is yearly payment & is received at the end of every year

Present Value of Perpetuity = Payment Receivable in 1st year/ (Discount rate - Growth rate)

Present Value of Perpetuity = 500/(2%-1%)

Present Value of Perpetuity = 500/0.01

Present Value of Perpetuity = $50,000

So, the present value of all the future trust payments is closest to $50,000

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Your friend is worried about saving enough money for college and wants to research different situations. What would you advise h
natima [27]

Answer:

I would reccomend finding a site like, "How to save money for college" or something.

Explanation:

4 0
3 years ago
The next wave of marketable innovations may involve new ways to produce and conserve energy. If we can turn new technology into
Whitepunk [10]

Answer:

The correct answer is a) Gross domestic product (GDP)

Explanation:

Gross domestic product (GDP) is a fiscal measure of the market value of all the final goods and services produced annually. There are two types of GDP, nominal and Real.

8 0
3 years ago
Green Corp. owns 30°10 of the outstanding common stock and 100°10 of the outstanding noncumulativenonvoting preferred stock of A
vampirchik [111]

Answer:

c. $60,000

Explanation:

Provided information,

Green Corp owns 30% of the the common stock and 100% of preference share capital of Axel Corp.

Also, Green Corp is exercising significant influence on Axel Corp.

Thus, for accounting purpose Green Corp will use equity method as the investment is more than 20%.

Any dividend received from Axel Corp on common stock will be deducted from carrying value of investment in common stock, though dividend received on preference capital will increase the profits as will be added to income statement.

Thus, dividend recognized in Income Statement = $60,000 received on preference capital.

Correct answer is

c. $60,000

4 0
3 years ago
Nash Corporation had income from continuing operations of $10,813,600 in 2020. During 2020, it disposed of its restaurant divisi
Mrac [35]

Answer and Explanation:

The presentation of the partial income statement is presented below:

                                                  Nash Corporation

                                            Partial income statement

Income from continuing operations    $10,813,600

Discontinued operations

Loss from operations of a division   $316,100

Loss from disposal of the division    $206,600                  ($522,700)

Net income                                         $10,290,900

Earning per share

Income from continuing operations                    

($10,813,600 ÷ 10,000,000 shares)        $1.08

Less Discontinued operations

($522,700 ÷ 10,000,000 shares)              -$0.05

Net income

($10,290,900 ÷   10,000,000 shares)      $1.03

We simply deduct the losses from the income so that the net income could arrive

5 0
3 years ago
Susan picked up a package of potato chips and noticed on the front of the package the words, "0 grams of trans fat." She looked
Tcecarenko [31]

Answer:

The correct option here is C) Nutritional labeling and education act.

Explanation:

NLEA or commonly know as nutritional labeling and education act is a new rule passed by the government , which requires the sellers or marketers of a product to show all the information regarding number of grams of fat ( whether trans fat, saturated or saturated fat ) on the packaging of the product.

3 0
3 years ago
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