Answer:
Accounting Cost = $100,000
Economic Cost = $114,000
Explanation:
The computation of accounting and economic cost is shown below:-
Accounting Cost = Salary of Jill + Labor costs + Insurance and mortgage payment
= $30,000 + $60,000 + $10,000
= $100,000
Economic Cost = Accounting Cost + Investment return lost + Loss in Salary ($50,000 - $30,000) + Loss in Rent ($20,000 - $10,000)
= $100,000 + $4,000 + $10,000
= $114,000
Answer:
Explanation:
The journal entry is shown below:
Truck A/c Dr $4,500
To Cash A/c $4,500
(Being the truck is replaced for cash)
Since the truck is replaced so we debited the truck account and credited the cash account so that the correct posting can be done.
The replacement cost increase its useful life which is capitalized so we also debited the truck account
Answer:
PV of lease annuity is $25000
Explanation:
As the paymengt will be made at the end of the year, the annuity is an ordinary annuity. We will calculate the present value of the ordinary annuity using the following formula,
PV Annuity = PMT * [( 1 - (1+r)^-n) / r]
Where,
- PMT is periodic payment
- r is discount rate per peiod
- n is number of periods
Thus,
PV of annuity = 3895.5 * [( 1 - (1+0.09)^-10) / 0.09]
PV of annuity = $24999.985 rounded off to $25000
Answer:
Hutters can be claim two dependents
Explanation:
we know here that Hutters can be claim two dependents
because here given Carla and Ellie as Aaron meets neither the residency nor citizenship requirement
but Carla is a qualifying relative and is under the age of 24
but Ellie is above 24 but is a qualifying relative as scholarship is non-taxable
so
we can say that answer is two
Answer:
0%
30%
Explanation:
Given:
Average return = 15%
Standard deviation = 15%
Computation:
On assuming 68% chance,
Lowest point = Average return - Standard deviation
Lowest point = 15% - 15%
Lowest point = 0%
Highest point = Average return - Standard deviation
Highest point = 15% + 15%
Highest point = 30%
Therefore, on 68%, Lowest point is 0% and highest point is 30%.
