Answer:
The balance in the Sinking Fund immediately after repayment of the loan will be $2,133.19
Explanation:
Hi, John will pay the loan by paying the yearly interest and the rest is going to go to the sinking fund, so, if he has $1,627.45 and the annual interest of the loan are $1,000, he will be depositing $627.45 into the sinking fund for ten years. Therefore, the future value of the annual deposits of the sinking can be found by using the following formula.
Where:
A = equal annual savings into the sinking fund (that is $627.45)
r = effective rate of the sinking fund (14%)
n = 10 years
Everything should look like this.
Now, this is the balance after 10 years, but remember that John has to pay the loan, which is $10,000 (not $11,000 because John pays the interest of the loan and then deposits the balance into the sinking fund). Therefore, the balance after repaying the loan is $12,133.19 - $10,000 = $2,133.19.
Best of luck.
Answer:
A) Katie's maximum deduction is $200,000 x 20% = $40,000
But we must check that her deduction meets 3 requirements:
- cannot exceed 50% of her earned wages = $300,000 x 50% = $150,000 ✓ requirement met
- cannot exceed 25% of her earned wages + 2.5% of qualified property = ($300,000 x 25%) + ($150,000 x 2.5%) = $78,750 ✓ requirement met
- cannot exceed 20% of taxable income = $400,000 x 20% = $80,000 ✓ requirement met
B) Katie's maximum deduction is $400,000 x 20% = $80,000, but since her net business income is higher than her taxable income, she must calculate 20% x $350,000 (taxable income) = $70,000 (same as requirement 3 in previous answer)
Answer:
$424,000
Explanation:
Data provided as per the given question as below
Liabilities = $184,000
Fair value of the restaurant assets = $665,000
Cash = $905,000
The computation of amount of goodwill is shown below:-
Amount of goodwill = Cash - (Fair value of the restaurant assets - Liabilities)
= $905,000 - ($665,000 - $184,000)
= $424,000
Answer:
Explanation:
1) the number of weeks per year = 52 weeks
Average weekly demand(d) = 60 per weeks
Annual demand (D) = d x number of weeks per year = 60 x 52 = 3120 bolts
Ordering cost(O) = $12
Cost per bolt = 2 cents = $0.02
Holding cost(H) = 25% of cost = 0.25 * $0.02 = $0.005
a) Optimal order quantity (Q) = √(2DO/H)
= √[(2 X 3120 X 12) / 0.005]
= √(74880/0.005)
= √14976000
= 3870 bolts
Time between orders = (Q/D) number of weeks per year
= (3870/3120) 52
= 64.5 or 65 weeks
b) Annual holding cost =(Q/2) H = (3870/2) *0.005 = $9.675
Annual setup cost = (D/Q)* O = (3120/3870)* 12 = $9.674
Answer:
C) As an other financing source in the debt service fund and as an other financing use in the capital projects fund.
Explanation:
The options are missing:
- A) As a revenue in the debt service fund and as an expenditure in the capital projects fund.
-
B) As an other financing source in the capital projects fund and as an other financing use in the debt service fund.
-
C) As an other financing source in the debt service fund and as an other financing use in the capital projects fund.
-
D) As a special item in both the debt service and capital project funds.
Other financing sources is an account used by governments to record non-operating revenues and expenditures. The debt service fund is the money that the government has set aside to pay for its outstanding bonds. The capital projects fund is the account used by the government to record expenses related to certain projects.