Answer and Explanation:
The computation of the expected return and the exclusion amount is shown below:
Expected return is
= Received amount on a monthly basis × total number of months in a year × life expectancy
= $500 × 12 × 24.2
= $145,200
Now the exclusion amount is
= Purchase value of an annuity × Purchase value of an annuity ÷ expected return
= $90,000 × $90,000 ÷ $145,200
= $55,785
Answer:
Annual depreciation= $16,000
Explanation:
Giving the following information:
Purchase price= $44,000
Useful life= 5 years
Salvage value= $4,000
<u>To calculate the depreciation expense under the double-declining balance, we need to use the following formula:</u>
<u></u>
Annual depreciation= 2*[(book value)/estimated life (years)]
Annual depreciation= 2*[(44,000 - 4,000) / 5]
Annual depreciation= 16,000
Answer: Net markups are included.
Explanation:
The retail inventory method is used to know a store's merchandise value.
Under the retail method, in determining the cost-to-retail percentage for the current year, net markups are included.
It should be noted that the net markups are applicable to net costs.
Answer: $11123
Explanation:
Based on the information given, Marnie's net income or loss from the activity will be calculated thus:
Rental income = $18000
Less: Property tax = $2500 × 75/365 = $514
Less: Mortgage interest = $3500 × 75/365 = $719
Less: Utilities = $1100 × 75/97 = $851
Less: Repairs and Maintenance = $1000 × 75/97 = $773
Less: Depreciation = $5200 × 75/97 = $4021
Net income = $11,123
Answer:
command, market, and mixed
