Answer: The cost of the equipment is $66,500.
Explanation: Under IAS 16 Property, Plant and Equipment, the cost of an asset comprises:
- purchase price plus import duties and taxes
- any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in a manner intended by management
- the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located
In the question, $60,000 was the purchase price, the transportation cost of $1,000 was necessary to bring the asset to the location intended by management, $3,000 was the sales tax and the installation cost of $2,500 was also necessary for the asset to function as intended by management. So all these costs would be capitalized as the cost of the equipment as $66,500.
Answer:
40%
Explanation:
Total assets. $240,000
Less total liabilities ($130,000)
$110,000
Less common stock ($24,000)
Retained earnings at end $86,0000
Less Retained earnings at the beginning ($29,000)
Addition to retained earnings $57,000
Add dividends $6,400
Net profit earned $63,400
Add expenses $94,000
Revenue. $157,400
Therefore, company's net profit margin expressed as a percentage = Net profit earned / Revenue
= (63,400/157,400) × 100
= 40%
Answer:
<u>Maximum Amount that can be loanded = $4139619</u>
Explanation:
DSCR = NOI / Debt Service
Debt Service = Principal + Interest
NOI = $ 500000
Debt Service = 500000 / 125 % = $ 400,000
The loan would be ammortized monthly over a period of 25 years.
Monthly Payment or EMI
E = P×r×(1 + r)n/ ((1 + r)n - 1)
12E = 400,000 = [P×r×(1 + r)n/ ((1 + r)n - 1)] * 12
or, P = 400000 / 0.0966272500154557 = $4139619
<u>Maximum Amount that can be loanded = $4139619</u>
<span>There is a popular rule
called the rule of 72 where in you will divide 72 by the interest rate of your
investment to know the length of time the value of your money will double. In here, 72 divided by 11 is 6.55 years. Your
$17,000 will be $34,000 after approximately 6.55 years.</span>
