Answer:
Check the answers below!
Explanation:
There is just one question despite the exercise requires completition of 7 additional numerals.
a. Required down payment = Price of the condominium * interest rate required by the bank.
$95.000 * 20% = $19.000
b. 28% of adjusted monthly income is:
(5000-145)*28%=
1359.4
c. Monthly payments of principal and interest for a 25-year loan.
Using PV of ordinary annuity formula,
with PV of the bank loan =96000*80%=76800
d.Total monthly payment=
671+((346+1400)/12)=
817
e.YES---- 817 < 1359.4
f. Amt. of First payment on the loan applied to the principal:
671-(76800*0.00792)=
62.74
ie.$ 63
g.Total amount she pays for the condominium with a 25-year conventional loan(without including taxes & homeowners' insurance)
671*12 mths. *25 yrs. =
201300
h) So, Total interest paid for the 25-year loan:
201300-76800=
124500
No.of periods=25*12=300
at monthly interest of 9.5%/12=
76800=Pmt.*(1-1.00792^-300)/0.00792
Solving the above, we get the monthly payment as 671
Answer and Explanation:
The computation of the fair return for each company is shown below:
Fair Return = Risk free rate of return + Beta × market risk premium
= 4.8 + 1.6 × 5.9
= 14.24%
Now
Everything $5 is
= 4.8 + 1 × 5.9
= 10.7%
Hence, the same should be considered
Due to the error in the recording of correct amount of inventory the ,at the end of Madison river supply balance sheet , the inventory , current assets, total assets and shareholders equity would be understated by $10,400.
Now due to the error in recording correct amount of inventory , in the balance sheet it will be shown as understated by $10,400 ( $555,400 - $5454,000 ) , now because of this the current assets would become understated by the same amount as inventory comes under the current assets.
Since current assets are understated , the total assets of the company would also be understated and so do shareholders equity as the net income has decreased because of the increase in cost of goods sold.
Answer:
$20,000
Explanation:
According to the given situation, the computation of stockholder equity is shown below:-
Stockholder equity = Service in cash + Sent bills
= $15,500 + $4,500
= $20,000
Therefore for computing the stockholder equity we simply applied the above formula so that the correct value could come
Hence, the stockholder equity is $20,000
Answer:
Option C is correct
Explanation:
Using straight line depreciation method we can calculate the annual depreciation of the machinery, which can be calculated from the following formula:
Straight Line Depreciation = (Cost - Salvage Value) / Useful value
Straight Line Depreciation = ($95000 - $5000) / 5 years life = $18,000
The double entry would be:
Dr Depreciation Expense $18,000
Cr Accumulated Depreciation $18,000
