Answer:
The present value of your windfall if the appropriate discount rate is 10 percent is $5,562
Explanation:
Amount of Prize = $3,000,000
number of year = 66 years
Discount Rate = 10%
use following formula to calculate the Present value of Lottery prize
Present Value = Future value / ( 1 + discount rate )^number of years
PV = FV / ( 1 + r )^n
PV = $3,000,000 / ( 1 + 0.10 )^66
PV = $3,000,000 x ( 1 + 0.10 )^-66
PV = $3,000,000 x ( 1.10 )^-66
PV = $5,561.65
PV = $5,562
Explanation:
The reporting is shown below:
Income statement
Particulars Amount Particulars Amount
Depreciation
expense $28,800
Balance sheet
Liabilities Amount Assets Amount
Equipment $240,000
Less: Accumulated
Depreciation -$144,000
Net value of an equipment $96,000
Only these items would be displayed on the income statement and the balance sheet
Answer: Informational
Explanation: These roles refers to the collection, dissemination and transmission of information by the manager. This role of the manager depicts how suitable a manager in decision making as the information collected is usually related to some important decision to be made.
In the given case, Julia tries to collect all the relevant information from different sources such as staff meetings. She collected all the information with objective of making the product suitable for customer needs and preferences.
Thus, we can conclude that Julia likes to play informational role.
Answer:
Lessee's Entries:
Rent expense (Dr.) $45,500
Cash (Cr.) $45,500
Lessor's Entries:
1. Property Tax expense (Dr.) $2,000
Maintenance and Repair Expense (Dr.) $650
Insurance Expense (Dr.) $500
Accounts Payable (Cr.) $3,150
2. Depreciation Expense (Dr.) $ 29,285
Accumulated Depreciation (Cr.) $29,285
3.Cash (Dr.) $45,500
Rent Revenue (Cr.) $45,500
Explanation:
The lease is considered as an operating lease as it does not have bargain purchase option and renewal options. The property ownership is not transferred in this lease.
Depreciation expense:
[ Cost - Salvage Value ] / 7
220,000 - 15000 / 7