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Harman [31]
3 years ago
5

A small business has determined that the machinery they currently use will wear out in 16 years. To replace the new machine when

it wears out, the company wants to establish a savings account today. If the interest rate on the account is 1.6 percent compounded quarterly and the cost of the machinery will be $280,000, how much will the company have to deposit today?
Business
1 answer:
Afina-wow [57]3 years ago
8 0

Answer:

Present value deposit today = 216,886 (Approx)

Explanation:

Given:

Number of year (n) = 16 years x 4 quarter = 64

Rate of interest (r) = 1.6% = 0.016 / 4 = 0.004

Future value = $280,000

Present value = ?

Computation of present value deposit today:

Present\ value = \frac{Future\ value}{(1+r)^n}\\\\Present\ value = \frac{280,000}{(1+0.004)^{64}}\\\\Present\ value = \frac{280,000}{1.291}\\\\Present\ value = 216,886.135

Present value deposit today = 216,886 (Approx)

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In the Trial Balance:
Mariana [72]

Answer:

Option A

Explanation:

  • Debit is for increasing expenses and assets
  • Where as credit decreases them.

As per Newtons third law every action has a equal and opposite reaction

  • So every debit have a equal credit in trial balance.

Opt A is correct

6 0
2 years ago
In a job order costing​ system, a credit to Finished Goods Inventory will be accompanied by a debit to A. WorkminusinminusProces
goldenfox [79]

Answer:

A. Work-in-Process Inventory

Explanation:

What a credit to finished goods inventory actually means is that there was an increase in the number of finished goods. If finished goods increased, it means that the number of goods still being worked on (Work-in-process inventory) has decreased (debit). Thus, this transaction must be accompanied by a debit to Work-in-Process Inventory.

4 0
3 years ago
What are the advantages and disadvantages of common stocks​
andrey2020 [161]

Advantages:

  • You can invest in companies with limited liability.
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  • Common stocks can provide dividends.
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Disadvantages:

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Hopes this helps :)

5 0
3 years ago
Determine the price in period 1 (the future) if 30 units of oil are consumed in period 0 (the present).
Dovator [93]

Answer:

$16.50

Explanation:

Note: The complete question is attached as picture below

We know that there is a total of 90 units of oil and 30 units is consumed in period 0.

So, in period 1, the consumption amount will be = 90-30=60 units.

So, Q1 = 192 - 8P

For 60 units, the price will be 60 = 192 - 8P

8P = 192 - 60

8P = 132

P = 132 / 8

P = 16.5

So, the price in period 1 is $16.50

8 0
3 years ago
On December 31, 2017, Beta Company had 320,000 shares of common stock issued and outstanding. Beta issued a 4% stock dividend on
rosijanka [135]

Answer:

The answer is 324,050 shares

Explanation:

Stock dividends adds to the total number of shares outstanding while treasury stock(buy-back) reduces the total number of outstanding shares.

Beta issued a stock dividend of 4percent. Meaning the outstanding shares will increase by 4percent.

1.04 x 320,000 shares

=332,800 shares is the total number of outstanding shares before treasury stock.

Treasury stock issued on September 30, 2018. This means we have 3months(October 1 - December 31st, 2018).

So we have 3/12 x 35,000 shares

= 8,750 shares

Therefore, the appropriate number of shares to be used in the basic earnings per share computation for 2018:

=332,000 shares - 8,750 shares

= 324,050 shares

6 0
3 years ago
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