On June 30, 2016, the Big Three Company purchased equipment from Randall Corp. Big Three agreed...
On June 30, 2016, the Big Three Company purchased equipment from Randall Corp. Big Three agreed to pay Randall $12,000 on the purchase date and the balance in five annual installments of $14,739 on each June 30 beginning June 30, 2017. Assuming that an interest rate of 8% properly reflects the time value of money in this situation, at what amount should Big Three value the equipment?
Homework Answers
Present value of 5 annual installments = Annual installment x Present value ordinary annuity factor (r%, n)
= 14,739 x Present value ordinary annuity factor (8%, 5)
= 14,739 x 3.99271
= $58,848.55
Big Three should value the equipment = Cash payment on the purchase date + Present value of 5 annual installments
= 12,000 + 58,848.55
= $70,848.55
= $70,849 (if rounded to whole number)
Kindly comment if you need further assistance. Thanks
Add Answer to:
On June 30, 2016, the Big Three Company purchased equipment from
Randall Corp. Big Three agreed...
On June 30, 2019, the Patriotic Company purchased equipment from Jettison Corp. Patriotic agreed to pay...
On June 30, 2019, the Patriotic Company purchased equipment from Jettison Corp. Patriotic agreed to pay Stone $15,000 on the purchase date and 5 payments of $12,000 on each June 30 thereafter. Problem 2: On June 30, 2019, American Airlines leased a jumbo jet from Boeing Corporation. The terms of the lease require American to make 20 annual payments of $450,000 on each June 30 beginning on the first day of the lease. Requirements: Accounting standards require Beckman Company to...
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV...
Johnstone Company is facing several decisions regarding
investing and financing activities. Address each decision
independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of
$1 and PVAD of $1) (Use appropriate factor(s) from the
tables provided.)
1. On June 30, 2016, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $30,000 on the purchase date and the balance in five annual installments of $7,000 on each June 30 beginning June 30,...
t Required 1 Required 2 Required 3 On June 30, 2021, the Johnstone Company purchased equipment...
t
Required 1 Required 2 Required 3 On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $17,000 on the purchase date and the balance in five annual installments of $9,000 on each June 30 beginning June 30, 2022. Assuming that an interest rate of 10% properly reflects the time value of money in this situation, at what amount should Johnstone value the equipment? (Round your final answers to nearest whole dollar amount.)...
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV...
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $24,000 on the purchase date and the balance in six annual installments of $7,000 on each June 30 beginning June 30,...
Saved Hel Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision...
Saved Hel Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $23,000 on the purchase date and the balance in five annual installments of $6,000 on each June 30 beginning June...
Problem 5-2 (Algo) Present and future value (LO5-7,5-8, 5-10) Johnstone Company is facing several decisions regarding...
Problem 5-2 (Algo) Present and future value (LO5-7,5-8, 5-10) Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $14,000 on the purchase date and the balance in five annual installments...
Excuse the order of the pictures. Johnstone Company is facing several decisions regarding investing and financing...
Excuse the order of the pictures.
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $17,000 on the purchase date and the balance in five annual installments of $9,000 on...
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV...
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $24,000 on the purchase date and the balance in six annual installments of $7,000 on each June 30 beginning June 30,...
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently EV...
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently EV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of S1) (Use appropriate factor(s) from the tables provided.) 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $12.000 on the purchase date and the balance in six annual installments of $10,000 on each June 30 beginning June 30,...
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV...
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) points (8 01:54:58 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $17,000 on the purchase date and the balance in five annual installments of $9,000 on each June 30...
Johnstone Company is facing several decisions regarding
investing and financing activities. Address each decision
independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of
$1 and PVAD of $1) (Use appropriate factor(s) from the
tables provided.)
1. On June 30, 2016, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $30,000 on the purchase date and the balance in five annual installments of $7,000 on each June 30 beginning June 30,...
t
Required 1 Required 2 Required 3 On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $17,000 on the purchase date and the balance in five annual installments of $9,000 on each June 30 beginning June 30, 2022. Assuming that an interest rate of 10% properly reflects the time value of money in this situation, at what amount should Johnstone value the equipment? (Round your final answers to nearest whole dollar amount.)...
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $24,000 on the purchase date and the balance in six annual installments of $7,000 on each June 30 beginning June 30,...
Saved Hel Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $23,000 on the purchase date and the balance in five annual installments of $6,000 on each June 30 beginning June...
Problem 5-2 (Algo) Present and future value (LO5-7,5-8, 5-10) Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $14,000 on the purchase date and the balance in five annual installments...
Excuse the order of the pictures.
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $17,000 on the purchase date and the balance in five annual installments of $9,000 on...
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $24,000 on the purchase date and the balance in six annual installments of $7,000 on each June 30 beginning June 30,...
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently EV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of S1) (Use appropriate factor(s) from the tables provided.) 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $12.000 on the purchase date and the balance in six annual installments of $10,000 on each June 30 beginning June 30,...
Johnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) points (8 01:54:58 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $17,000 on the purchase date and the balance in five annual installments of $9,000 on each June 30...
Most questions answered within 3 hours.
-
please don't use the p value method instead use the "5 steps of
hypothesis testing." Or...
asked 15 minutes ago -
It is said that Galileo discovered a basic principle of the
pendulum—that the period is independent...
asked 21 minutes ago -
The Cost of Equity and
Flotation Costs
Messman Manufacturing
will issue common stock to the public...
asked 27 minutes ago -
a) summarize the challenges facing New Britain today
b) identify some of its strengths
c) suggest...
asked 29 minutes ago -
**86 at 40 not 88. please show how got Tr in calculations thank
you
2) The...
asked 30 minutes ago -
McGlaun Company pays its employees every two weeks. The firm
last paid its employees on September...
asked 44 minutes ago -
You have been gifted a Mogwai as a pet and decide to do a little
online...
asked 48 minutes ago -
given the standard of 200 mg/dl and the absorbance of that
standard is 0.640. What is...
asked 51 minutes ago -
Exercise 8-51 Algo
An accounting professor is notorious for being stingy in giving
out good letter...
asked 59 minutes ago -
month
total distribution cost
level of activity (unit produced)
july
230.000
3500
august
250.000
3750
september...
asked 1 hour ago -
A smoke detector system uses two devices, A and B. If smoke is
present, the probability...
asked 1 hour ago -
Your division head has assigned another important project to you
and your team. This project is...
asked 1 hour ago