. A three-year interest rate swap has a level notional amount of 300,000. Each settlement period is one year and the variable rate is the one-year spot interest rate at the beginning of the settlement period. The swap rate for this interest rate swap is 4.317%. Two years have elapsed and the one-year spot interest rate at the start of year three is 5.25%. Calculate the market value of the swap from the perspective of the payer.

Answers

Answer 1

Answer:

$2,660

Explanation:

The market value is the present value of expected future cash flows.

Expectation is that swap will pay (300,000) (0.04317) and receive (300,000) ( 0.0525), and these payments would be made at end of one year.

Then, market value = ((300,000)(0.0525) - (300,000)( 0.04317)) / (1 + 0.0525)

Market value = 2799 / 1.0525

Market value = 2659.38

market value = $2,660

Therefore, the market value of the swap from the perspective of the payer is $2,660.


Related Questions

BlueInk Corporation's accumulated depreciation increased by $14,000, while parents decreased by $3,875 between consecutive balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a loss on sale of land of $1,950. Accounts receivable increased $6,320, inventory decreased $3,125, prepaid expenses decreased $720, and account payable increased $2,760. Reconcile a net income of $55,000 to net cash flow from operating activities.

Answers

Answer:

$69,285

Explanation:

Reconcilation of the net income of net cash flow from operating activities.

Cash flow from operating activities

Net income $55,000

Adjustments made to reconcile:

Add: Depreciation expense $14,000

Less Increase in account receivable ($6,320)

Add Decrease in inventory $3,125

Add Decrease in prepaid expense $720

Add Increase in account payable $2,760

Net cash flow from operating activities $69,285

Therefore the net income of net cash flow from operating activities will be $69,285

Recently us dairies struggling to increase milk sale tried to change the way adults thought about chocolate milk the dairies wanted to.

Answers

Reposition how the consumers perceived chocolate milk.

A retail store has three departments, S, T, and U, and does general advertising that benefits all departments. Advertising expense totaled $47,000 for the year, and departmental sales were as follows. Allocate advertising expense to Department T based on departmental sales.
Department S $109,000
Department T 218,850
Department U 142,150
Total 470,000
a) $47,000.
b) $21,885.
c) $10,900.
d) $16,567.
e) $13,900.

Answers

Answer:

Allocated advertising = $21,885

Explanation:

Giving the following information:

Advertising expense= $47,000

Sales:

Department S $109,000

Department T 218,850

Department U 142,150

Total 470,000

First, we need to calculate the proportion of sales of Department T:

Sales proportion Department T= 218,850 / 470,000= 0.4656

Now, we can allocate advertising costs:

Allocated advertising = 47,000*0.4656

Allocated advertising = $21,884

During August, Boxer Company sells $360,000 in merchandise that has a one-year warranty. Experience shows that warranty expenses average about 4% of the selling price. The warranty liability account has a credit balance of $12,400 before adjustment. Customers returned merchandise for warranty repairs during the month that used $9,000 in parts for repairs. The entry to record the estimated warranty expense for the month is:

Answers

Answer:

Debit Estimated Warranty Liability $12,400

Credit Warranty Expense $12,400

Explanation:

Warranty Expense = 0.04 * Total Sales

Warranty Expense = 0.04 * $360,000

Warranty Expense = $14,400

Warranty Liability Account = Warranty Expense + Opening balance of the Warranty liability Account

Warranty Liability Account = $14,400 + $12,400

Warranty Liability Account = $26,800

The business would incur actual warranty expense of $12,400.

Debit Estimated Warranty Liability $12,400

Credit Warranty Expense $12,400

Newton Manufacturing has 31,000 labor hours available for producing M and N. Consider the following information: Product M Product N Required labor time per unit (hours) 2 3 Maximum demand (units) 6,500 8,000 Contribution margin per unit $ 5 $ 5.70 Contribution margin per labor hour $ 2.50 $ 1.90 If Newton follows proper managerial accounting practices in terms of setting a production schedule, how much contribution margin would the company expect to generate

Answers

Answer:

total contribution margin = $68,500

Explanation:

31,000 hours of labor available

                                                                     Product M            Product N

Required labor time per unit (hours)                 2                           3

Maximum demand (units)                               6,500                    8,000

Contribution margin per unit                             $5                      $5.70

Contribution margin per labor hour               $2.50                    $1.90

since the constraint here is the total number of labor hours, the company must first produce the product that generates the highest contribution margin per labor hour = product M.

total units produced of product M = 6,500

total labor hours required = 6,500 x 2 = 13,000

contribution margin product M = 13,000 x $2.50 = $32,500

remaining labor hours = 31,000 - 13,000 = 18,000

total units of product N produced = 18,000 / 6 = 6,000

contribution margin product N= 18,000 x $2 = $36,000

total contribution margin = $68,500

A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period, unprocessed wheat was purchased for $320,000, and the following quantities of product and sales revenues were produced. Product Pounds Price per pound Feed 100,000 $ 1.60 Flour 72,000 2.50 Starch 40,000 1.50 How much of the $320,000 cost should be allocated to flour if the value basis is used

Answers

Answer:

the cost that should be allocated to flour is $144,000

Explanation:

The computation is shown below:

Particulars    Total value

Feed       (100,000 × $1.60)  = $160,000

Flour        (72,000 × $2.50) = $180,000

Starch      (40,000 × $1.50) = $60,000

Total        $400,000

Now the allocation made to flour is

= $180,000 ÷ $400,000 × $320,000

= $144,000

Hence, the cost that should be allocated to flour is $144,000

Beckenworth had cost of goods sold of $11,121 million, ending inventory of $3,789 million, and average inventory of $2,135 million. Its days' sales in inventory equals:________. (Use 365 days a year.)

Answers

Answer:

124.4 days

Explanation:

Calculation for what Its days' sales in inventory equals:

Using this formula

Days' sales in inventory =Ending inventory/Cost of goods sold*365 days.

Let plug in the formula

Days' sales in inventory=$3,789 million / $11,121 million *365

Days' sales in inventory = 124.4 days

Therefore Its days' sales in inventory equals:124.4 days

Assume that the accounts receivable (in millions) were $1,308 at the beginning of
1. Compute the accounts receivable turnover for Year 2 and Year 1. Round to two decima
Best Buy, Media Play,
Buy reported the following (in millions):
Sales
Accounts receivable at end of year
fiscal Year 1.
Year 2
$39,528
1,162
Year 1
$40,339
1,280
places.
2. Compute the days' sales in receivables at the end of Year 2 and Year 1. Use 365 dans
and round to one decimal place.
3.
What conclusions can be drawn from (1) and (2) regarding Best Buys
efficiency in collecting receivables?
4.
What assumption did we make about sales for the Best Buy ratio computa-
tions that might distort the ratios and therefore cause the ratios not to be comparable
for Year 2 and Year 1?

Answers

Answer:

hhhhhhhhhhhhhhhhggggggg

Chester Corp. ended the year carrying $21,490,000 worth of inventory. Had they sold their entire inventory at their current prices, how many more dollars of contribution margin would it have brought to Chester Corp.

Answers

Answer: $21,490,000

Explanation:

Contribution Margin is simply the Sales less the value of variable costs.

If the inventory had been sold in its entirety, it would have added its value to the sales which means that sales would have increased by the value of the inventory which is $21,490,000.

Portions of the financial statements for Peach Computer are provided below.
PEACH COMPUTER
Income Statement
For the year ended December 31, 2021
Net sales $1,925,000
Expenses:
Cost of goods $1,100,000
sold
Operating expenses 610,000
Depreciation expense 55,000
Income tax expense 45,000
Total expenses 1,810,000
Net income $ 115,000
PEACH COMPUTER
Selected Balance Sheet Data
December 31
Increase (I) or Decrease
2021 2020 (D)
Cash $107,000 $87,500 $19,500 (I)
Accounts receivable 45,500 51,500 6,000 (D)
Inventory 80,000 57,500 22,500 (I)
Prepaid rent 3,500 6,000 2,500 (D)
Accounts payable 50,000 39,500 10,500 (I)
Income tax 5,500 12,500 7,000 (D)
Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)

Answers

Answer:

Cash flow from Operating Activities

Net income                                            115,000

Add Depreciation                                  55,000

Add Income tax                                      45,000

Decrease in Accounts receivable           6,000

Increase in Inventory                            (22,500)

Decrease in Prepaid rent                        2,500

Increase in Accounts payable               10,500

Cash Generated from Operations        211,500

Income tax paid                                    (38,000)

Net Cash from Operating Activities     173,500

Explanation :

The operating activities section of the statement of cash flows shows the Cashflow results from the Operating or Normal trading business of the organization.

Bramble Corp. purchased a truck at the beginning of 2020 for $109000. The truck is estimated to have a salvage value of $3700 and a useful life of 121000 miles. It was driven 21000 miles in 2020 and 29000 miles in 2021. What is the depreciation expense for 2021

Answers

Answer:

2020 = 18275.206

2021 = 25237.190

Explanation:

Cost of truck at beginning of 2020 = $109,000

Salvage value = $3700

Useful life = 121,000 miles

Miles driven in 2020 = 21000

Miles driven in 2021 = 29000

Depreciation expense 2020:

((Cost of asset - salvage value) / useful life) * miles driven in 2020

((109,000 - 3700) / 121000) * 21000

0.8702479 * 21000 = 18275.206

Depreciation expense 2021:

((109,000 - 3700) / 121000) * 29000

= 25237.190

why does this app suck i a way? i looked at this question: The managers want to know how many boxes of 12 cookies can be filled with the 3,258 cookies that have been baked. Fatima starts by subtracting the largest number of boxes she can easily calculate. She knows that 100 boxes of 12 cookies can be put into one crate. How many crates can be filled from the total of 3,258 cookies?

then an expert verified its 3 so i put it in and it said incorrect. am i not getting something or is it maybe incorrect in my platform?

Answers

Answer:

this app is fine, it has helped me a lot

Explanation:

BUT, you shouldnt rely on it all the time, unless you're genuinely struggling on grasping a topic I suggest trying to teach to yourself.

The Allwardt Trust is a simple trust that correctly uses the calendar year for tax purposes. Its income beneficiaries (Lucy and Ethel) are entitled to the trust's annual accounting income in shares of one-half each.
For the current tax year, Allwardt reports the following.
Ordinary income $100,000
Long-term capital gains 30,000
Trustee commission expense, allocable to corpus 5,000
The trust instrument allocates the capital gain to income.
a. Each beneficiary is entitled to receive income of $_________ .
b. The trust's DNI is $_______ .
c. The trust's Selecttaxable incomelossCorrect 1 of Item 3 is $__________ .
d. Each of the beneficiaries can report _____________ of gross income.

Answers

Answer:

a. Each beneficiary will receive;

= Ordinary income / 2

= 100,000/2

= $50,000

b. Trust's DNI is;

= Accounting income + exemption - long term capital gains

= (Ordinary income + long term gain - commission - personal exemption) + exemption - long term capital gains

= (100,000 + 30,000 - 5,000 - 300) + 300 - 30,000

= $95,000

c. Taxable income = Long term gain - exemption

= 30,000 - 300

= $29,700

d. Each beneficiary can report;

= DNI/ 2

= 95,000/2

= $47,500

Match the characteristic described with the market or markets it applies to. Each characteristic can have multiple answers and each market type can be used multiple times. can earn economic profit in the long run produces at lowest possible average cost in the long run the pricing choices of one firm have a dramatic effect onother firms in the market faces a downward sloping demand curve usually faces entry from new firms is typically protected by barriers to market entry

Answers

Answer:

1. Can earn economic profit in the long run - MONOPOLY AND OLIGOPOLY

Monopolies and Oligopolies both have less competition in their market types which means that they can make economic profit in the long run.

2. Produces at lowest possible average cost in the long run - PERFECT COMPETITON

With so many firms involved in the market in the long run, firms come up with cost cutting strategies to enable them stay in business.

3. The pricing choices of one firm have a dramatic effect on other firms in the market - OLIGOPOLY

As there are few firms in such a market, the prices that one firm has can influence the choices of other firms. If one firm increases prices, the others could reduce prices to capture market share or collude and increase their own prices as well.

4. Faces a downward sloping demand curve - MONOPOLY, OLIGOPOLY, MONOPOLISTIC COMPETITION

All three of these markets face a downward sloping demand curve because they have to decrease their prices to sell more goods.

5. Usually faces entry from new firms - PERFECT COMPETITON and MONOPOLISTIC COMPETITION

Both these markets se firms entering and exiting because there are no barriers to entry.

6. Is typically protected by barriers to market entry - MONOPOLY and OLIGOPOLY

These two have barriers to entry that restrict the number of firms in the market.

Mr. Dealer bought a fleet of SUVs (sport utility vehicles) from General Motors (GM) on credit, GM agreeing not to assign the resulting account receivable without Dealer's consent. GM later, without debtor dealer's consent, assigned the account to The Bank of New York (BNY) for consideration. Dealer made payments to BNY, but claimed damages from GM for breach of contract. 1. Could Dealer collect damages from GM

Answers

Answer:

Yes, Dealer could collect damages from GM because basically GM breached the contract. Any time a contract is breached, the non-breaching party can sue. But the real question here is what amount could the court assign to Dealer as compensation for damages incurred. If you want to rephrase this question, it would be: What damages did Dealer suffer due to GM's breach.

If the damages are not significant, then the court will probably assign some amount for nominal damages. To be honest, the greatest expenses here are actually the legal costs of the lawsuit. Unless Dealer can prove that assigning the contract actually hurt them (which I doubt), then the court will assign a small amount. Sometimes nominal damages can be very small and mostly symbolic, e.g. $1.

The Dealer could not collect damages from GM because he did not suffer any harm from the assignment of the account receivable.

The Dealer could have refused to pay the Bank of New York and claimed a breach of contract against GM Motors.  But it was not a material breach.

Secondly, the sales agreement with GM Motors only required the debtor dealer's consent before the assignment.  It did not forbid GM Motors from assigning the account.  It does not seem that any penalty was agreed upon for breach of this clause.

Thus, the Debtor Dealer could not collect damages from GM Motors because he cannot substantially prove that GM's action put him in financial loss.

Learn more: https://brainly.com/question/12790234 and https://brainly.com/question/24991312

Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: Inventory Purchases Sales May 1 1,300 units at $36 May 10 650 units at $38 May 12 910 units May 20 585 units at $40 May 14 780 units May 31 390 units Assuming that the perpetual inventory system is used, costing by the LIFO method, determine the cost of merchandise sold for each sale and the inventory balance after each sale. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.

Answers

Answer:

total cost of goods sold = $78,520

Explanation:

Inventory Purchases Sales

May 1 1,300 units at $36

May 10 650 units at $38

May 12 910 units

Cost of goods sold = (650 x $38) + (260 x $36) = $34,060

May 20 585 units at $40

May 14 780 units

Cost of goods sold = (585 x $40) + (195 x $36) = $30,420

May 31 390 units

Cost of goods sold = 390 x $36 = $14,040

total cost of goods sold = $34,060 + $30,420 + $14,040 = $78,520

Assets Liabilities
Total Reserves $60,000
Demand Deposits $200,000
Loans $140,000
The balance sheet above shows the financial situation for the Car central bank has set a reserve requirement of 10 percent. What is additional money Carland National Bank can create?
a. $600,000.
b. $40,000.
c. $200,000.
d. $60,000.
e. $400,000.

Answers

Answer:

b. $40,000

Explanation:

Calculation for What additional money Carland National Bank can create

Using this formula

Additional money=Total Reserves-(Demand Deposits*Reserve requirement percentage)

Let plug in the formula

Additional money = $60,000 -( $200,000*10%)

Additional money = $60,000-$20,000

Additional money = $40,000

Therefore the additional money Carland National Bank can create will be $40,000

A delivery company is considering adding another vehicle to its delivery fleet; each vehicle is rented for $250 per day. Assume that the additional vehicle would be capable of delivering 1,750 packages per day and that each package that is delivered brings in $0.25 in revenue. Also assume that adding the delivery vehicle would not affect any other costs. Instructions: Round your answers to 1 decimal place. a. What are the MRP and MRC

Answers

Answer: See explanation

Explanation:

Based on the information that has been given in the question, the MRP will be calculated as the multiplication of the total packages that was delivered by the revenue that was gotten from one package. This will be:

MRP = 1750 × 0.25

= $437.5

The MRC based on the question = $250

Based on the above, a profit of $187.5 ($437.5 - $250) will be earned.

On January 1, Balanger Company buys 10 percent of the outstanding shares of its parent, Altgeld, Inc. Although the total book and fair values of Altgeld's net assets equaled $3.2 million, the price paid for these shares was $340,000. During the year, Altgeld reported $415,000 of separate operating income (no subsidiary income was included) and declared dividends of $35,000. How are the shares of the parent owned by the subsidiary reported at December 31

Answers

Answer: a. Consolidated stockholders’ equity is reduced by $340,000.

Explanation:

Consolidated stockholders' equity is the equity owned by stockholders in the entire parent company of Altgeld and its subsidiaries. Balanger as a company, then buys some of its parent's stock for $340,000.

The effect this will have is to reduce the stock available to stockholders in the parent and the subsidiaries almost like buying treasury shares. Consolidated stockholders' equity will therefore reduce by the amount paid for the shares of $340,000.  

At which stage of project management do you need to discuss and clarify doubts about the project with the client?
А. risk mitigation
B. project Initiation
C. project planning
D. project execution

Answers

Answer:

C. Project Initiation

Explanation:

You typically should sort out all questions and concerns about a project to a client before the actual work on the project begins. Project Initiation is sort of pre-planning: it is pitching an idea to a client.

Risk mitigation is esentially risk management, or fixing problems after they arise.

Project planning is the beginning of the project where you map out the path you'd take to execute the idea.

Project execution is the actual work that is done to complete the project.

Answer:

B. project initiation

(got it right on edmentum)

be sure to check the picture below fro more secure to getting this question right

Explanation:

Todd Mountain Development Corporation is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow at the rate of 11% per year. The risk-free rate of return is 8%, and the expected return on the market portfolio is 18%. The stock of Todd Mountain Development Corporation has a beta of 0.80. Using the constant-growth DDM, the intrinsic value of the stock is _________. Multiple Choice 8.80 11.11 27.27 60.00

Answers

Answer:

the intrinsic value of the stock is $60

Explanation:

The computation of the intrinsic value of the stock is as follows:

But before that the cost of equity is

The Cost of Equity is

= Risk Free Rate + Beta × (Market Return - Risk Free Rate)

= 8% + 0.80 × (18% - 8%)

= 16%

Now

Intrinsic Value is

= Next year Dividend  ÷ (Rate of Return - Growth rate)

= $3 ÷ (16% - 11%)

= $60

hence, the intrinsic value of the stock is $60

Select the examples of layoffs. Check all that apply. India loses her job as an Urban Planner because the city ran out of funding. Tori loses her job as a Foreign Service Officer because she is not good at communicating with or negotiating with foreign officials. Hunter loses his job as a Tax Examiner because he keeps making mistakes. Fidel loses his job as an Eligibility Interviewer because Legislators decided to cut his department, even though Fidel was very good at his job.

Answers

Answer:

Fidel loses his job as an Eligibility Interviewer because Legislators decided to cut his department, even though Fidel was very good at his job.

Explanation:

A layoff refers to the termination of an employment contract due to a shortage of work. Employers initiate layoffs. They may be a temporary suspension of employment or permanent termination.

Layoffs are not a result of an employee's fault or incompetency. They may be caused by declining revenue, some operations' shutdown,  automation of processes, and outsourcing of some services.  

Fidel's case was a layoff. There was no work available for him after his department was shutdown.

Answer:

A.) India loses her job as an Urban Planner because the city ran out of funding.

D.) Fidel loses his job as an Eligibility Interviewer because Legislators decided to cut his department, even though Fidel was very good at his job.

Explanation:

I don't have an explanation but I did get this right on edge

A company had a beginning balance in retained earnings of $43,300. It had net income of $6,300 and declared and paid cash dividends of $5,700 in the current period. The ending balance in retained earnings equals:

Answers

Ending balance is $43,900. You take the beginning balance of RE, add net income (or subtract net loss) then subtract any dividends paid.

how the consumer motivated to purchase product. what are the critaria and decision making​

Answers

Answer:

In plain terms, the consumer motivation is the set of cognitive factors driving a customer's determination to make a single sale. The payment is the ultimate product of a "Purchaser's Process" scheme, a three-stage mechanism consisting of:

1.Awareness.

2.Interest.

Determination 

Bantam company calculated its net income to be $77,600 based on the unadjusted trial balance. The following adjusting entries were then made for: Salaries and wages owed but not yet paid of $795. Interest earned but not received from investments of $755. Prepaid insurance premiums amounting to $555 have expired. Deferred revenue in the amount of $755 has now been earned. Required: Determine the amount of net income (loss) that will be reported after the adjustments are recorded.

Answers

Answer:

$77,760

Explanation:

After adjustment items of expenses will be deducted from the Net income, and items of income will be added to the net income.

Item of expenses = unpaid salary + Prepaid insurance (Expired)

Item of income = Interest earned + revenue

Net income after deduction = 77,600 - 795 - 555 + 755 + 755

Net income after deduction = $77,760


What are the step(s) when using the Sales with Payment customer
workflow?

Answers

Answer:

Option (d) is correct

Explanation:

Create Invoice > Receive Payment deposited to the Undeposited Funds account > Create Bank Deposit.

Hope this provides to your accomplishment. Hit Same to stimulates the specialists to provide characteristic explications.

Although In Case you are not 100% convinced with the explanation, Feel available to comment, We will attempt to resolve the matter ASAP.

Mighty Safe Fire Alarm is currently buying 60,000 motherboards from MotherBoard, Inc., at a price of $65 per board. Mighty Safe is considering making its own boards. The costs to make the board are as follows: direct materials, $28 per unit; direct labor, $8 per unit; and variable factory overhead, $17 per unit. Fixed costs for the plant would increase by $76,000. Which option should be selected and why

Answers

Answer:

It is cheaper to make the units in-house.

Explanation:

Giving the following information:

Buy:

Purchase price= $65

Make:

Direct materials= $28 per unit

Direct labor= $8 per unit

Variable factory overhead= $17 per unit.

Fixed costs for the plant would increase by $76,000.

We need to calculate the total cost for each option. The best option is the one with lower total costs:

Buy:

Total cost= 60,000*65= $3,900,000

Make:

Total cost= 60,000*(28 + 8 + 17) + 76,000

Total cost= 3,180,000 + 76,000

Total cost= $3,256,000

It is cheaper to make the units in-house.

What strategies can we use to listen actively? Responses should include five techniques.

Answers

Answer:

1. Pay Attention

-Look at the speaker directly.

-Put aside distracting thoughts.

-Don't mentally prepare a rebuttal!

-Avoid being distracted by environmental factors. For example, side -conversations.

-"Listen" to the speaker's body language

2. Show That You're Listening

-Nod occasionally.

-Smile and use other facial expressions.

-Make sure that your posture is open and interested.

-Encourage the speaker to continue with small verbal comments like yes, and "uh huh."

3. Provide Feedback

-Reflect on what has been said by paraphrasing. "What I'm hearing is... ," and "Sounds like you are saying... ," are great ways to reflect back.

-Ask questions to clarify certain points. "What do you mean when you say... ." "Is this what you mean?"

-Summarize the speaker's comments periodically.

4. Defer Judgment

-Allow the speaker to finish each point before asking questions.

-Don't interrupt with counter arguments.

5. Respond Appropriately

-Be candid, open and honest in your response.

-Assert your opinions respectfully.

-Treat the other person in a way that you think she would want to be treated.

Explanation:

Ben sells stock (adjusted basis of $25,000) to his son, Ray, for its fair market value of $15,000. Ray sells the stock to his neighbor, Trish, for $26,000. Which of the following statements are most accurate?a. Ben’s recognized loss is $0 and Ray’s recognized gain is $1,000.b. Ben’s recognized loss is $10,000 and Ray’s recognized gain is $10,000.c. Ben’s recognized loss is $10,000 and Trish’s recognized gain is $1,000.d. Ray’s recognized gain is $11,000 and Trish’s basis is $26,000.e. None of the above

Answers

Answer:

Ray’s recognized gain = $11,000

Trish’s basis = $26,000.

Option "D" is the correct answer.

Explanation:

Given:

Adjusted value of stock = $25,000

Market vale = $15,000

Sales price = $26,000

Find:

Ray’s recognized gain

Trish’s basis

Computation:

Ray’s recognized gain = Sales price - Market vale

Ray’s recognized gain = $26,000 - $15,000

Ray’s recognized gain = $11,000

Trish’s basis = $26,000.

Brad's Diner is expanding and expects operating cash flows of $32,000 a year for 4 years as a result. This expansion requires $39,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $3,000 of net working capital throughout the life of the project. What is the net present value of this expansion project at a required rate of return of 12 percent

Answers

Answer: $57,101.73

Explanation:

First find the present value of the cash inflows. The $32,000 is a constant payment so is an annuity. The net working capital will be realized at the end of the project as well.

Present value of cash inflows = (32,000 * Present value interest factor of an annuity, 4 years, 12%) + 3,000/ (1 + 12%)⁴

= (32,000 * 3.0373) + 1,906.55

= ‭$99,101.73

NPV = Present value of inflows - Outflows

= ‭99,100.15‬ - (39,000 + 3,000)

= $57,101.73

Other Questions
simplify 100y^3/98xy pls answer soon hegarty maths lazyim giving u all my points for this pls Write the slope-intercept form of the equation that is described below.Through (-3, 3) and perpendicular to y = 1/3x + 5What is the equation: What effect is a writer most likely to create by using an allusion that is too dramatic for the context Evaluate g(x)=4 -3x when x=-3,0, and 5 can someone send me pics of mad cats which mosquito cause malaria? Dennis Company purchases Miles Company for $4,200,000 cash on January 1, 2015. The book value of Miles Company's net assets reported on its December 31, 2014 financial statement was $3,800,000. An analysis indicated that the fair value of Miles's tangible assets exceeded the book value by $600,000, and the fair value of identifiable intangible assets exceeded book value by $320,000. What amount of gain or goodwill is recognized by Dennis anybody like 2020? how many holidays are there its not for school im just not smart Please provide an explanation with your answer, thank you! HELP PLZ You dont have to solve all of them just do the ones you know! Which event was the final straw which led to the rewriting of the Constitution? aShays's Rebellion bAnnapolis Convention cWhiskey Rebellion dThe Boston Massacre help asap, this topic is about immigration Une. Now match each answer with the question that triggered it. What would be the prefix of the word unprecedented?a.unc.dentedb.precendd.ted On Sunday it was 89F. On Monday it was 15 colder. What temperature was it on Monday?I need help I dont understand Rewrite the equation y-31x= 93 as a function of x?Pls answer quick pls. These tiles represent the expression 2(5x3)9x. Which expression is equivalent to 2(5x3)9x? Line L is shown in the coordinate plane. a. What are the coordinates of points and ? b. Is the point (16,20) on line L ? Explain how you know. c. Is the point (20,24) on line L? Explain how you know. d. Is the point (80,100) on line L? Explain how you know. e. Write a rule that would allow you to test whether (, ) is on line L. Answer this correctly or somewhat or Ill report you, please help this is due today.1. CivicsDescribe the government system of Mesopotamia and how they changed over the course of time. Support your thinking with evidence!2. GeographyDescribe the environmental challenges Mesopotamia faced and how they controlled their environment to solve those problems. Support your thinking with evidence!3. Social JusticeIdentify an example of inequality in Mesopotamian society. Support your thinking with evidence! At right is the tunnel entrance that runs throughCastle Hill in Budapest, Hungary.-a If the maximum height of the tunnel is thesame as its maximum width, 9.8 meters,determine a quadratic model to representthe tunnel-b State a geometric model that could be used torepresent a truck passing through the tunnel.-c If a typical truck has a width of 2.62 m,determine the height limitation that shouldbe put on these trucks if they are going totravel through the tunnel safely. State anyassumptions that you made and be sure toshow all of the steps in your solution.-d Because its length is almost 350 meters,a truck stopped in the tunnel would needenough room for the passenger door to openfully. Suppose a truck with a width of 2.6 mand height of 3.4 m is stuck in the right laneof the tunnel by the center line. The top ofthe driver's door is 0.2 m below the top of thetruck, and the door opens 0.8 m to the side.Show that the door can open fully, showingall of your steps.-e Determine how close to the side of the tunnelthe truck could be in d be and still be able toopen the passenger door.-f Describe some issues/concerns that youthink architects take into account whenmodelling a tunnel before its constructionEnd of document