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vitfil [10]
2 years ago
13

Suddeth Corporation has entered into a 6 year lease for a building it will use as a warehouse. The annual payment under the leas

e will be $2,468. The first payment will be at the end of the current year and all subsequent payments will be made at year-ends. If the discount rate is 5%, the present value of the lease payments is closest to (Ignore income taxes.):
Business
1 answer:
Ulleksa [173]2 years ago
6 0

Answer:

$13,153.15

Explanation:

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator

Cash flow each year from year 0 to 5 = $2,468

I = 5%

PV = $13,153.15

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

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10 percent partner in a partnership that incurred a $4 million business loss this year. Jahlil has no other business activities.
sashaice [31]

Answer:

$250,000 and $500,000

Explanation:

According to the tax laws there is annual limit on Loss deductions  relating the amount of business loss that can be deducted in a year.

The law states that single or individual tax payers can deduct nothing more than $250,000 while married taxpayers who are filing jointly can deduct up to $500,000 per year of their business losses.

Therefore, if Jahlil is single the amount of partnership loss he can deduct is $250,000 but if he is married filing jointly, he can deduct $500,000

6 0
1 year ago
Work specialization contributes to higher employee productivity, but at the price of __________. Select one: a. Reduced economie
Yakvenalex [24]

Answer:

The correct answer is letter "D": Reduced job satisfaction.

Explanation:

Work specialization refers to limiting the number of activities to employees so they can focus on determining duties only. This is implemented in an attempt of mastering workers in performing the work they are assigned to do. However, work specialization brings automation which does not allow employees to develop their skills at work and, consequently, leads to reduced job satisfaction.

6 0
2 years ago
Cathy’s apartment was broken into and her two-year-old sound system was taken. Cathy had paid $1,400 for the system, but it will
dedylja [7]

Answer:

$1,240

Explanation:

The actual cash value coverage will pay for the replacement cost of Cathy's sound system minus depreciation.

replacement cost = $1,800

expected useful life = 10 years

depreciation for 2 years = $1,800 x 2/10 = $360

sound system's net value = $1,800 - $360 = $1,440

Cathy will receive = net value of sound system - deductible = $1,440 - $200 = $1,240

5 0
2 years ago
Common stock is a vehicle for selling ownership and another way to raise money for​ operations, expansion, or other business nee
ale4655 [162]

The statement, "Common stock is a vehicle for selling ownership and another way to raise money for​ operations, expansion, or other business needs" is true.

<u>Explanation:</u>

Common stock is a distribution tool and a way to raise capital for investment, business growth or other company needs.

Common stock is a kind of  company holding, a type of safety. In many other regions of the world, the terms polling share and prevalent share are frequently were using.

The "common stock" is used mainly in the USA. These are classified as shareholdings or common shares in the United Kingdom and other Commonwealth.

It means that one common stock share constitutes percentage equity of a corporation. In certain words, this is a way to split the assets of a corporation.

For example, if 100 shares were taken out, one share would amount to one percent of the company's intellectual property.

6 0
1 year ago
Honeycutt Co. is comparing two different capital structures. Plan I would result in 12,700 shares of stock and $109,250 in debt.
velikii [3]

Answer: $47.50

Explanation:

The price pr share given debt and the number of shares if the company had both an all equity structure and a mixed structure can be expressed as;

Price per Share = Debt Value / (Number of Shares under All-equity plan - Number of shares under mixed plan)

Price per share = 109,250 / (15,000 - 12,700)

= 109,250 / 2,300

= $47.50

4 0
2 years ago
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