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2 years ago

An annuity with an infinite life is called a(n) ________. A. perpetuity B. deep discount C. primia D. option

Business

1 answer:

Tasya [4]2 years ago

3 0

Answer:

The correct answer is letter "A": perpetuity.

Explanation:

Annuities are regularly-provided income hired through insurance. Those payments can be provided within a short or long period of time until an undetermined date. That is the reason why annuities are also called perpetuities. Annuities are taxed at regular income tax rates.

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Merchant Company purchased property for a building site. The costs associated with the property were: Purchase price $ 181,000 R

Elena-2011 [213]

Answer:

Any cost directly attributable to bring the asset into current location and condition necessary for it to be capable of operating it, in the manner intended by the management ( Para 15) 4.1.1. Clause b

According to this the cost must be allocated to the purchase of land.

There are three scenarios.

1) if the land with a building is purchased with the intention of demolishing an old building and building a new building then selling it all the costs would be assigned to the purchase of land.

2) if the land is purchased with the building on it and that building is used for a short time and then demolished then the building demolish charges would be expense out.

3)if the land with a building is purchased with the intention of demolishing an old building and building a new building then using it then two different costs accounts of land and building would be used. We would not demolish the old building without the new building being made so the demolish would be added in the incremental costs of the new building.

The given question is of the third scenario therefore

Costs of Land = $ 181,000 + $ 15,600 + $ 1400 + 2600= $ 200,600

Incremental Cost of new building = $ 1600

3 0

2 years ago

A quality improvement project was initiated in an industry that has seasonal demand for their product, coolers/ice chests, which

Vika [28.1K]

Answer:

The correct answer is letter "A": Histogram.

Explanation:

A Histogram is a graphic representation of grouped data in intervals. The data comes from quantitative variables. A histogram allows generating an idea of the distribution of the data or samples. Qualitative data can also be used but the amount of data must be large. This type of graph plots rectangular vertical bars together with proportional height to the intervals they represent.

Thus, the project in the example can use a histogram to portrait its level of sales through the different seasons.

7 0

2 years ago

Larry Nelson holds 1,000 shares of General Electric common stock. The annual shareholders meeting is being held soon, but as a m

Lisa [10]

Answer:

Larry must have signed a PROXY AGREEMENT that gives the management group control over his shares.

A proxy agreement is generally used for stockholders voting procedures, they basically grant another person the right to vote on behalf of another stockholder.

Larry's current investment in the company is $86,000.

= 2,000 stocks x $43 = $86,000

If the company issues new shares and Larry makes no additional purchase, Larry's investment will be worth $82,560.

company's new market value = (20,000 x $43) + (5,000 x $34.40) = $1,032,000

new stock price = $1,032,000 / 25,000 stocks = $41.28

= $41.28 x 2,000 = $82,560

This scenario is an example of STOCK DILUTION.

The stock price will lower because the increase in the company's value is less than proportional to the increase in the number of stocks.

Larry could be protected if the firm's corporate charter includes a PREEMPTIVE provision.

Preemptive rights give current stockholders the right to purchase more stocks (in case the company issues more stocks) before any outside investors.

If Larry exercises the provisions in the corporate charter to protect his stake, his investment value in the firm will become $103,200.

= [(5,000 / 10) x $34.40] + $86,000 = $17,200 + $86,000 = $103,200

5 0

2 years ago

A company is investing in a solar panel system to reduce its electricity costs. The system requires a cash payment of $125,374.6

tatyana61 [14]

Answer:

NPV is positive,the project should be accepted

Explanation:

In determining whether or not the project should be accepted ,we need to ascertain the Net Present value of the project which is present value of cash inflows of $13,000 for 35 years minus the initial investment of $125,374.60 committed today.

The annuity factor for 8% for 35 year horizon is 11.6546 using annuity table.

Present of cash inflow=cash inflow*annuity factor=$13,000*11.6546=$151,509.80

Net present value=$ 151,509.80-$125,374.60=$ 26,135.20

The investment has a positive NPV,hence should be accepted

4 0

2 years ago

Tanya (born 10-31-90) is single, has no dependents and will not itemize deductions. She cannot be claimed as a dependent by anyo

Kay [80]

Answer:

Tanya

Taxable Income is:

$23,564

Explanation:

a) Data and Calculations:

Gross Income:

Wages $22,594

Bank interest $320

Unemployment $250

Alimony (Pre 2018) $2,400

Total gross income $25,564

Claim adjustments:

Student loan interest ($800)

IRA (1,200)

Taxable income $23,564

b) Tanya's taxable income is the amount of income that will be used to calculate how much tax she owes to the government in a given tax year. It is generally described as the adjusted gross income because it is her total income, known as her “gross income,” minus any deductions or exemptions allowed in that tax year.

6 0

2 years ago

An annuity with an infinite life is called​ a(n) ________. A. perpetuity B. deep discount C. primia D. option

An annuity with an infinite life is called a(n) ________. A. perpetuity B. deep discount C. primia D. option