Answer:
Explanation:
We will apply the annuity formula because payments are made equally at year end for 40 years. we would have applied compound formula if total payment was made at year 40.
Total Payment = $40 mill.
Annual Payment = 2 mill.
Total time for payments =20
Ir = 8%
A)
Present Value of innings applying annuity formula
P=R(1-(1+i)^-n)/i
P=2(1-(1+8%)^-20)/8%
P=2(1-0.2145)/8%
P=2*9.8181
P=19.6362
B)
Present Value of innings applying annuity formula with Advance payment
Value of the first payment is same because it is paid at day 1 so present value is same i.e $2 mill.
Present Value of other 19 Payments with 19 years time from today
Applying the same formula
P=R(1-(1+i)^-n)/i
P=2(1-(1+8%)^-19)/8%
P=2(1-0.2317)/8%
P=2*9.6035
P=19.207
Present value of 1st payment at Year.0 = 2 mill
Present value of 19 payment at Year.0 = 19.207
Total Value =2+19.207 = $21.02 mill
At a price of $13, quantity demanded is 120 units<span>, quantity supplied </span>is 130 units; therefore,<span> excess supply</span> has occurred. This is also called as economic surplus. This is the effect when the price set to the product is above its equilibrium level which is determined by its supply and demand.<span> </span>
Answer:
Since Grady received the $60,000 gift, he does not owe any taxes on that transaction. When a gift is made, the receiving party pays no taxes, but the giving party has to pay taxes if it exceeds the $15,000 annual threshold or the $11.4 million lifetime exclusion.
But Grady must include the interests that he earned from the bonds as part of his gross income ($1,800). Interests are taxed as ordinary income.
Answer:
Explanation:
The classified balance sheet comprises of the assets, liabilities, and stockholder equity. With the help of the accounting equation, the total assets are equal to the total liabilities including stockholder's equity.
The assets are further divided into current assets, fixed assets, and intangible assets. Similarly, the liabilities are also further divided but they do not have any intangible liabilities.
The preparation of the partial balance sheet is presented in the spreadsheet. Kindly find the attachment below:
Answer:
No entry required
However, the balance sheet must be adjusted to represent both, the 4,000,000 inventory and the 4,000,000 accounts payable
Explanation:
As the account involved:
Inventory and accounts payable are permanent account do not alter the net income for the year ended December 31th 2020.
Also as no cash is involve the cash statement is not affected too.
This delay on recording generate no problem for the accounting.
