Answer:
Dr. Truck $80,869
CR. Note Payable $80,869
Explanation:
Note issued is a liability instrument. It is a promise of payment f principal amount and interest after a specific period of time. Zero interst interest bearing not does not offer any interest payment but it is issued at a discounted price . Present value of Note payable is the value that should be recognised as a cost of the truck.
Now calculate the present value of the Note.
PV of Zero coupon bond = FV / ( 1 + r )^n
Where
FV = FV maturity value of the note = $118,400
r = Interest rate = 10%
n= numbers of period = 4 years
Placing Values in the formula
PV of Zero coupon bond = $118,400 / ( 1 + 10% )^4
PV of Zero coupon bond = $80,869
Yes you are correct the cost pool is the people cost object is the product
Answer:
iii
Explanation:
Most of the time hotels will charge more when more rooms are booked, so when you book your hotel room, and many rooms are booked, most people do get charged more.
The total is $1,437.
Before June she had already paid social security on $100,000 in earnings. So, in June she only needs to pay social security on $18,500.
$18,500 x .062 = $1,147
She pays Medicare on all of June’s earnings = $20,000 x .0145 = $290
The total amount of FICA -social security withheld from this employee in June is $290 + $1,147 = $1,437
Answer:
We will consider positive interest rate which is i=0.21 or i=21%
Explanation:
The formula for Future value is:

The present value will become:

where:
n is the number of years
Since the condition is same present value,so the given data form the equation:

Divide above equation by 

Let
. Above equation will become:

Rearranging above equation:

Solving the quadratic equation:
z=1.1, z=0.9
Let
will become:


For z=1.1

For z=0.9

we will consider positive interest rate which is i=0.21 or i=21%