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3 years ago

During 2019, Pepe Guardio purchases the following property for use in his calendar year-end manufacturing business:

Business

1 answer:

Sladkaya [172]3 years ago

8 0

Answer:

Depreciation Expense for 2019 using form 4562

Basis For depreciation; Recovery Period ; Convention ; Method ; Depreciation deduction

2,000 ; 5 years ; HY ; 200 DB ; 400

40,000 ; 7 years ; HY ; 200 DB ; 6,573

Explanation:

Accelerated method of depreciation is used by businesses for accounting and income tax purposes. The depreciation is calculated in such a way that the depreciation expense is higher in early years and lower in later years. Pepe is also using this method to account for his business assets. The depreciation expense for computer equipment and manufacturing equipment's totals $6,973.

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Consider two bonds, a 3-year bond paying an annual coupon of 5.90% and a 10-year bond also with an annual coupon of 5.90%. Both

zlopas [31]

Answer:

First bond new price= $921.53

Second bond new price =$801.05

Explanation:

a. Face value= future value= $1,000

Coupon rate= 5.90%

Coupon payment= 0.0590*1,000= 59

Time= 3 years

Yield to maturity= 9%

Enter the below in a financial calculator to calculate the present value of the bond:

FV= 1,000

PMT= 59

N= 3

I/Y= 9

The value obtained is 921.53.

Therefore, the new price of the bond is $921.53.

b. Face value= future value= $1,000

Coupon rate= 5.90%

Coupon payment= 0.0590*1,000= 59

Time= 10 years

Yield to maturity= 9%

Enter the below in a financial calculator to calculate the present value of the bond:

FV= 1,000

PMT= 59

N= 10

Interest rate per annum= 9

The value obtained is 801.05.

Therefore, the new price of the bond is $801.05.

7 0

3 years ago

The Riteway Ad Agency provides cars for its sales staff. In the past, the company has always purchased its cars from a dealer an

Oksana_A [137]

Answer:

NPV = -$149,319.44

Explanation:

Ten cars will be needed, which can be purchased at a discounted price of $18,000 each. If this alternative is accepted, the following costs will be incurred on the fleet as a whole:

Annual cost of servicing, taxes and licensing $5,100
Repairs, first year $3,000
Repairs, second year $5,500
Repairs, third year $7,500

the required rate of return or discount rate for Riteway is 20%.

Cash flows:

CF₀ = -$180,000

CF₁ = -($5,100 +$3,000) = -$8,100

CF₂ = -($5,100 + $5,500) = -$10,600

CF₃ = ($9,000 X 10) - ($5,100 + $7,500) = $90,000 - $12,600 = $77,400

using an excel spreadsheet, we can calculate the NPV with r = 20%

NPV = -$180,000 + $30,680.56 = -$149,319.44

8 0

3 years ago

Polly sells goods to customers in exchange for a $10,000 noninterest-bearing note due in 3 years. The interest rate on this type

Irina-Kira [14]

Answer:

present value = $8396.19

Explanation:

given data

cash flow = $10,000

rate r = 6 %

time period t = 3 years

to find out

present value of the note

solution

we get here present value that is expressed as

present value = $\frac{cash\ flow}{(1+r)^t}$ ....................1

put here value and we will get present value

present value = $\frac{10000}{(1+0.06)^3}$

solve it we get

present value = $8396.19

7 0

3 years ago

When will the Social Security fund dry up at its current level?

gulaghasi [49]

2042 will be the year the fund drys up, based on its current level.

6 0

3 years ago

According to SEC independence regulations,

Komok [63]

Answer: Option (b) is correct.

According to Securities and Exchange Commission independence code: Pre-approval of accountants' work may be in reconciliation with comprehensive policies and transaction rather than categorical.

The Commission’s code, principally through Regulations S-X, focuses on the accomplishment of accountants, counting the autonomy condition for auditors that issue audit filed with Commission.

5 0

4 years ago