Answer:
they have the prime market I think? I don't see any options on here to know what direction the question is going.
Answer:
b. $ 50,000
Explanation:
Investment cost
720000
Book value of net asset
100000
420000
--------------
520000
Excess
200000
Allocated as follows
Land and equipment 50000
overvaluation of bonds payable 40000
Undervaluation of inventory 60000
Total 150000
Un allocated amount
Goodwill 50000
Total 200000
Answer:
The increase in earnings is $136511.56
Explanation:
Since the lease is a sale type of lease,it means that as soon as the machinery is delivered to the lessee,profit should be recognized on the lease transaction,which is computed below:
Profit on lease=present value of lease payments-costs
=$274149-$156000
=$118149
However,every six months interest is charged on the lease,which clearly indicates another source of earnings,the interest in the first six months is given below:
Interest=($274149-$44617)*8%
=$18362.56
Please note that interest is charged after lease payment as lease payment is made in advance not in arrears.
Conclusively, the increase in earnings is $118149+$18362.56
That is $136511.56
Answer: I'll need $2,14,309.02 in my savings account in order to make tuition payments over the next four years.
We follow these steps in order to arrive at the answer:
In this question, we need to take into account that we need to pay 35% as taxes on interest earned.
So even though the interest rate on the deposit is 5%, only
will be available for use.
Hence, effectively the deposit will only earn
or 3.25% interest after taxes.
We'll compute the the Present Value of the annuity of 58,000 for four years at 3.25% interest in order to determine the amount that is needed today.
The Present Value of an Annuity formula is

Substituting the values in the equation above we get,


