D would be the correct answer
Answer:
The correct answer is letter "B": towards the interest.
Explanation:
Mortgage payments are composed of the principal and the interest. <em>During the early life of the mortgage, most of the payments go towards the interest because it is calculated according to the outstanding balance of the mortgage</em>, which is higher at the beginning but as the loan approaches, the maturity date most of the payments will be directed to the principal and a minimum to interest.
Answer:
C. Annuity B has a smaller present value than annuity A
Explanation:
The correct answer to this question is B
!
Answer: The machine cost 64,500 and has accumulated depreciation of 36,120 so the book value of the machine is (64,500-36,120)=28380
The book value of the machine is 28380 so if the machine is sold for 32,250 then the gain on sale is (32,250-28380)= 3,870
Debit Credit
Cash 32,250
Machine 28,380
Gain on sale 3,870
If the machine is sold for 19,350 then there will be a loss on the sale of the machine and the loss will be debited. (28380-19350)=9,030
Debit Credit
Cash 19,350
Loss on sale 9,030
Machine 28,380
Explanation: