answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Fofino [41]
2 years ago
15

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.):A) $12,528B) $14,103C) $14,808D) $11,050
Business
1 answer:
ratelena [41]2 years ago
6 0

Answer:

A) $12,528

Explanation:

We should consider the rent payment as an annuity. Because we are paying, it should be considered the present value of an annuity.

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C  2,468

time 6

rate         0.05

2468 \times \frac{1-(1+0.05)^{-6} }{0.05} = PV\\

PV $12,526.8080

We are asked for the closet option, so we have to chose A) 12,528

You might be interested in
For each of the following independent events, identify the account that would be debited and the account that would be credited.
My name is Ann [436]

Answer:

A. Received cash by issuing common stock

Debit: Cash

Credit: common stock

B. Received cash for services to be performed in the future.

Debit: Cash

Credit: unearned revenue.

C. Paid salaries payable

Debit: salaries payable

Credit: cash

D. Provided services on account.

Debit: accounts receivable

Credit: service revenue

E. Paid cash for operating expenses

Debit: operating expenses

Credit: cash

Explanation:

A. Received cash by issuing common stock

Debit: Cash

Credit: common stock

B. Received cash for services to be performed in the future.

Debit: Cash

Credit: unearned revenue.

C. Paid salaries payable

Debit: salaries payable

Credit: cash

D. Provided services on account.

Debit: accounts receivable

Credit: service revenue

E. Paid cash for operating expenses

Debit: operating expenses

Credit: cash

6 0
2 years ago
Fashion, Inc. had a Retained Earnings balance of $16,000 at December 31, 2021. The company had an average income of $6,500 over
avanturin [10]

Answer:

Total amount of dividends paid over the last three years is $20500

Explanation:

The net income of the company is either retained in the company or paid out as dividends. To calculate the value of the ending retained earnings, we use the following formula,

Ending balance = Beginning balance + Net Income - Dividends

We first need to calculate the total net income for the 3 year period. The total net income for the 3 year period is, 3 * 6500 = $19500

Plugging in the available values for the ending and beginning balance of retained earnings and net income, we can calculate the value of total dividends paid for the three year period.

15000 = 16000 + 19500 - Dividends

Dividends = 35500 - 15000

Dividends = $20500

4 0
2 years ago
Orleans Corporation, a U.S. corporation, reported U.S. taxable income of $2,000,000. Included in the computation of taxable inco
Dafna11 [192]

Answer:

$420,000

Explanation:

Calculation for Orleans’s net U.S. tax liability

Using this formula

Tax liability=Taxable income×U.S tax rate

Let plug in the formula

Tax liability=$2,000,000×21%

Tax liability=$420,000

Therefore Orleans’s net U.S. tax will be $420,000. The withholding tax amount of $8,000 was not included because it was already imposed on the dividend.

8 0
2 years ago
Question 3 Lara Beal allocates wealth between two periods: youth and old age. Currently (in her youth) she has $8,000 in cash. S
Gnesinka [82]

Answer:

The correct answer is "$9450".

Explanation:

Given:

Payoff from investment,

= $6000

Lending to bank,

= 8000-5000

= 3000

Now,

At 15% interest,

The amount to be received from bank will be:

= 3000\times (1+\frac{15}{100} )

= 3000(1+0.15)

= 3000\times 1.15

= 3450 ($)

hence,

In her old age, most she can assume will be:

= 6000+3450

= 9450 ($)

4 0
2 years ago
A company has an opening stock of 6,000 units of output. The production planned for the current period is 24,000 units and expec
Orlov [11]

Answer:

Explanation:

                                                Last year           Current year

Selling Price                      10                         10

Varaible Price                5                         6

Contribution Margin               5                               4

Break even is the point where total cost is equal to total revenue mean no profit and loss.

company earns the contribution margin after covering the variable cost, now only fix cost remains for break even.

Break Even using FIFO method :  first In first out system

Fix Cost                                                                            =     86000

contribution from opening units(6000*5)                            =     30000

Remaining Fix cost that should be Covered from

current year products                                                            =     56000

 

Units to be sold for break-even ( 56000/4)   = 14000

so we have break even units   6000+14000 = 20000

Fix cost                              = -86000

Opening 6000*5              = 30000

Current   14000*4             = 56000

Profit                                   = 0

Break Even using LIFO method : Last in first out

Fix Cost                                                                            =     86000

Break even =  Fix Cost / Contribution margin

Break even =  86000/4 =21500

current production is 24000 which is higher than break even units so we can cover the fix cost from current year production because company is using lifo method. we do not need opening units for the break even.

4 0
2 years ago
Other questions:
  • As shown in exhibit 7-2, the rate of inflation for year 2 is:
    15·1 answer
  • Yvette is a customer of Apexon Bank, which is a member of the FDIC. She currently has a checking account that has $17,371 and a
    7·1 answer
  • On January 1, Weatherholt Inc. issued $5,000,000, 9% bonds for $4,695,000. The market rate for these bonds is 10%. Interest is p
    13·1 answer
  • On March 1, Terrell & Associates provides legal services to Whole Grain Bakery regarding some recent food poisoning complain
    11·1 answer
  • You work for RBEY, Inc., a corporation that manufactures wooden furniture. You are a procurement officer, responsible for purcha
    6·1 answer
  • Synergy and Dynaco are the only two firms in a specific high-tech industry. They face the following payoff matrix as they decide
    10·1 answer
  • A manufacturing company has variable overhead costs of $2.50 per unit and fixed costs of $5,000 per month. Each unit requires 4
    5·1 answer
  • A consumer values a car at $20000 and it costs a producer $15000 to make the same car. If the transaction is completed at $18000
    10·1 answer
  • The first step in the decision-making process requires you to do what?
    7·1 answer
  • Last year Kruse Corp had $440,000 of assets (which is equal to its total invested capital), $403,000 of sales, $28,250 of net in
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!