Answer:
$11,560
$5666.661
Explanation:
Given the following :
Bill received from accountant = $17,000
This year's marginal tax rate = 32%
Next year's marginal tax rate = 37%
After tax return on investment = 11%
After tax cost of bill is paid in December :
Billed amount * this year's tax rate
$17,000 * ( 1 - 0.32)
= $17,000 * 0.68
= $11,560
B) After tax cost of bill was paid in January:
Billed amount * next year's tax rate * PV factor
From the present value factor table;
PV factor (1 years, 11%) = 0.9009
Hence,
$17,000 * 0.37 * 0.9009 = $5666.661
Answer: $2151
Explanation:
The amount of the discount on these bonds at issuance will be the difference between the par value of the bond issues by Tank company and the price at which the bonds were sold. This will be:
= $82000 - $79,849
= $2151
Therefore, the amount of the discount on these bonds at issuance is $2151.
Answer:
Per Chevron 3Q 2013 Filling:
The percentage change in the cost of purchased oil products nine months to September 30, 2013 when compared to nine months in 2012 was:
2.47%
Explanation:
a) Data and Calculations:
Cost of purchased oil products:
2013 $34,822,000,000
2012 $33,982,000,000
Change $840,000,000
Percentage Change = $840/$33,982 x 100
= 2.47%
b) The implication is that Chevron's cost of purchased oil products in third quarter of 2013 increased by 2.47% when compared with the same period in 2012. This percentage change is calculated by subtracting the Q3 2012 cost of purchased oil products from the Q3 2013 cost of purchased oil products and then dividing the difference by the Q3 2012, and multiplying by 100. The change could be caused by increases in the price of oil products or other variables.
Answer:
A) Dr. Encumbrances – Office supplies No entry
Cr. Encumbrances outstanding
Explanation:
The journal entry is given below;
For Governmental fund financial statements
Encumbrances-Office Supplies $1,500
To Encumbrances Outstanding $1,500
(Being Office Supplies ordered is recorded)
For Government-wide financial statements
No journal entry is required as under the accrual accounting, no entry should be recorded until the transaction does not arise
Therefore the option a is correct
Answer:
$73.47
Explanation:
2.87 is the current dividend paid (D0)
Use that to find dividends for the next 5 years;
D1 = D0(1+g) ; g being the growth rate
D1 = 2.87(1.08) = 3.0996
D2 = 3.0996(1.08) = 3.3476
D3 =3.3476(1.08) = 3.6154
D4 = 3.6154(1.08) = 3.9046
D5 = 3.9046(1.08) = 4.2170
Next, find terminal cashflows;
D6 (yr 2024) = 4.2170 (1.03) = 4.3435
Find Present values of all the dividends using the 8% discount rate with the formula; PV = FV/
PV(D1) = 2.87
PV(D2) = 2.87
PV(D3) = 2.87
PV(D4)= 2.87
PV(D5)= 2.87
PV of terminal value; PV(D6 onwards) = 
= 59.1223
Sum up the PVs to find value per share;
$2.87 +$2.87 +$2.87 +$2.87 +$2.87+ $59.1223 = $73.47
