Using the information provided, what transaction represents the best application of the present value of an annuity due of $1? A. Falcon Products leases an office building for 8 years with annual lease payments of $100,000 to be made at the beginning of each year. B. Compass, Inc., signs a note of $32,000, which requires the company to pay back the principal plus interest in four years. C. Bahwat Company plans to deposit a lump sum of $100.000 for the construction of a solar farm In 4 years. D. NYC Industries leases a car for 4 yearly annual lease payments of $12,000, where payments are made at the end of each year.
Using the information provided, what transaction represents the best application of the present value of an annuity due of $1? A. Falcon Products leases an office building for 8 years with annual lease payments of $100,000 to be made at the beginning of each year. B. Compass, Inc., signs a note of $32,000, which requires the company to pay back the principal plus interest in four years. C. Bahwat Company plans to deposit a lump sum of $100.000 for the construction of a solar farm In 4 years. D. NYC Industries leases a car for 4 yearly annual lease payments of $12,000, where payments are made at the end of each year.
Which of the following transactions would best use the present value of an annuity due of 1 table?
Pina Colada Corp. wants to deposit a lump sum to accumulate $48000 for the construction of a new parking lot in 3 years.
Pearl Industries borrows $20600 and has agreed to pay back the principal plus interest in three years.
Sandhill Co. rents a warehouse for 5 years with annual rental payments of $125000 to be made at the end of each year.
Coronado Industries rents a truck for 4 years with annual rental payments of $24100 to be made at the beginning of each year.
The UNICROM company asks the bank for a loan to purchase machinery. The amount granted is $ 40,000.00 with a nominal rate of 42% per year. The company agrees with the bank to pay in 12 installments with constant amortization which are paid monthly. Calculate the value of the 3rd installment and the value of the constant amortization.
a3rd installment: 4200 and Amortization: 3333
b.3rd installment: 4500 and Amortization: 3000
c.3rd installment: 4200 and Amortization: 4000
d.3rd installment: 4500 and Amortization: 3333
e3rd installment: 4383 and Amortization: 3333
With clear resolution please
Could you help me solve this accounting homework problem for me? and please show all your work so I can understand it
On January 1, 2020, TPM Inc. acquires a piece of equipment for a list price of $300,000. It pays$20,000 immediately and writes a note for the remainder. Annual interest of 3% is due everyDecember 31st, and the principal of the note is payable in 6 years.TPM’s incremental borrowing rate is 6%, while the seller’s incremental borrowing rate is 7%.TPM is a public company. It depreciates its equipment using the diminishing balance method at15%. The equipment’s residual value is $40,000 at the end of its useful life.
1) Prepare all required journal entries for the years 2020 and 2021.2) Determine the Asset’s net book value on January 1, 2024.3) Determine the note payable carrying value on January 1, 2024.
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