Shamrock Corporation bought a new machine and agreed to pay for it in equal annual installments of $4,880 at the end of...
Shamrock Corporation bought a new machine and agreed to pay for it in equal annual installments of $4,880 at the end of each of the next 10 years. Assuming that a prevailing interest rate of 8% applies to this contract, how much should Shamrock record as the cost of the machine? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Cost of the machine to be recorded $enter cost of the machine to be recorded in dollars
Homework Answers
| Annual installments | 4880 | |
| X PV factor 8% | 6.71008 | =(1-(1.08)^-10)/0.08 |
| Cost of the machine to be recorded | 32745 |
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Shamrock Corporation bought a new machine and agreed to pay for it in equal annual installments of $4,880 at the end of...
On January 1, 2020, Bramble Corporation sold a building that cost $274.380 and that had accumulated...
On January 1, 2020, Bramble Corporation sold a building that cost $274.380 and that had accumulated depreciation of $105,010 on the date of sale. Bramble received as consideration a $264,380 non-interest-bearing note due on January 1, 2023. There was no established exchange price for the building, and the note had na ready market. The prevailing rate of interest for a note of this type on January 1, 2020 was 12%. At what amount should the gain from the sale of...
Shamrock Corporation purchased a special tractor on December 31, 2020. The purchase agreement stipulated that Shamrock...
Shamrock Corporation purchased a special tractor on December 31, 2020. The purchase agreement stipulated that Shamrock should pay $18,790 at the time of purchase and $5,200 at the end of each of the next 8 years. The tractor should be recorded on December 31, 2020, at what amount, assuming an appropriate interest rate of 12%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Cost of tractor to be recorded $enter...
Shamrock Corporation wants to withdraw $110,360 (including principal) from an investment fund at the end of...
Shamrock Corporation wants to withdraw $110,360 (including principal) from an investment fund at the end of each year for 9 years. What should be the required initial investment at the beginning of the first year if the fund earns 11%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Required initial investment $enter the required initial investment in dollars
On January 1, 2020, Shamrock Corporation purchased 321 of the $1,000 face value, 10%, 10-year bonds...
On January 1, 2020, Shamrock Corporation purchased 321 of the $1,000 face value, 10%, 10-year bonds of Walters Inc. The bonds mature on January 1, 2030, and pay interest annually beginning January 1, 2021. Shamrock purchased the bonds to yield 11%. How much did Shamrock pay for the bonds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Shamrock must pay for the bonds $enter a dollar amount should be paid...
On January 1, 2020, Shamrock Corporation sold a building that cost $270,060 and that had accumulated depreciation of $10...
On January 1, 2020, Shamrock Corporation sold a building that cost $270,060 and that had accumulated depreciation of $107,240 on the date of sale. Shamrock received as consideration a $260,060 non-interest-bearing note due on January 1, 2023. There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a note of this type on January 1, 2020, was 10%. At what amount should the gain from the sale of...
Exercise 6-17 Your client, Keith Metlock Leasing Company, is preparing a contract to lease a machine...
Exercise 6-17 Your client, Keith Metlock Leasing Company, is preparing a contract to lease a machine to Souvenirs Corporation for a period of 27 years. Metlock has an investment cost of $428,700 in the machine, which has a useful life of 27 years and no salvage value at the end of that time. Your client is interested in earning an 12% return on its investment and has agreed to accept 27 equal rental payments at the end of each of...
* Your answer is incorrect. Try again. Pina Corporation purchased a special tractor on December 31,...
* Your answer is incorrect. Try again. Pina Corporation purchased a special tractor on December 31, 2020. The purchase agreement stipulated that Pina should pay $21,610 at the time of purchase and $4,790 at the end of each of the next 8 years. The tractor should be recorded on December 31, 2020, at what amount, assuming an appropriate interest rate of 12%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to o decimal places, e.g. 458,581.)...
Your client, BLANK #1, is preparing a contract to lease a machine to BLANK #2 for...
Your client, BLANK #1, is preparing a contract to lease a
machine to BLANK #2 for a period of 28 years. BLANK #1 has an
investment cost of $421,800 in the machine, which has a useful life
of 28 years and no salvage value at the end of that time. Your
client is interested in earning an 11% return on its investment and
has agreed to accept 28 equal rental payments at the end of each of
the next 28...
On January 1, 2020, Sweet Corporation sold a building that cost $259,320 and that had accumulated...
On January 1, 2020, Sweet Corporation sold a building that cost $259,320 and that had accumulated depreciation of $102,520 on the date of sale. Sweet received as consideration a $249,320 non-interest-bearing note due on January 1, 2023. There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a note of this type on January 1, 2020, was 11%. At what amount should the gain from the sale of...
What is the future value of $8,650 at the end of 7 periods at 8% compounded...
What is the future value of $8,650 at the end of 7 periods at
8% compounded interest? (Round factor values to 5
decimal places, e.g. 1.25124 and final answer to 0 decimal places,
e.g. 458,581.)
The future value
$
Click here to view factor tables
What is the present value of $8,650 due 8 periods hence, discounted
at 6%? (Round factor values to 5 decimal places, e.g.
1.25124 and final answer to 0 decimal places, e.g.
458,581.)
The present value...
On January 1, 2020, Bramble Corporation sold a building that cost $274.380 and that had accumulated depreciation of $105,010 on the date of sale. Bramble received as consideration a $264,380 non-interest-bearing note due on January 1, 2023. There was no established exchange price for the building, and the note had na ready market. The prevailing rate of interest for a note of this type on January 1, 2020 was 12%. At what amount should the gain from the sale of...
Exercise 6-17 Your client, Keith Metlock Leasing Company, is preparing a contract to lease a machine to Souvenirs Corporation for a period of 27 years. Metlock has an investment cost of $428,700 in the machine, which has a useful life of 27 years and no salvage value at the end of that time. Your client is interested in earning an 12% return on its investment and has agreed to accept 27 equal rental payments at the end of each of...
* Your answer is incorrect. Try again. Pina Corporation purchased a special tractor on December 31, 2020. The purchase agreement stipulated that Pina should pay $21,610 at the time of purchase and $4,790 at the end of each of the next 8 years. The tractor should be recorded on December 31, 2020, at what amount, assuming an appropriate interest rate of 12%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to o decimal places, e.g. 458,581.)...
Your client, BLANK #1, is preparing a contract to lease a
machine to BLANK #2 for a period of 28 years. BLANK #1 has an
investment cost of $421,800 in the machine, which has a useful life
of 28 years and no salvage value at the end of that time. Your
client is interested in earning an 11% return on its investment and
has agreed to accept 28 equal rental payments at the end of each of
the next 28...
On January 1, 2020, Sweet Corporation sold a building that cost $259,320 and that had accumulated depreciation of $102,520 on the date of sale. Sweet received as consideration a $249,320 non-interest-bearing note due on January 1, 2023. There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a note of this type on January 1, 2020, was 11%. At what amount should the gain from the sale of...
What is the future value of $8,650 at the end of 7 periods at
8% compounded interest? (Round factor values to 5
decimal places, e.g. 1.25124 and final answer to 0 decimal places,
e.g. 458,581.)
The future value
$
Click here to view factor tables
What is the present value of $8,650 due 8 periods hence, discounted
at 6%? (Round factor values to 5 decimal places, e.g.
1.25124 and final answer to 0 decimal places, e.g.
458,581.)
The present value...
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