Hansaben As a result of a slowdown in operations, Tradewind Stores is offering employees who have been terminated aseverance package of $104,000 cash paid today: $104,000 to be paid in one year; and an annuity of $33,000 tobe paid each year for 3 years.Required:What is the present value of the package assuming an interest rate of 12 percent? (Euture Value of $1. PresentValue of $1. Future Value Annuity of $1. Present Value Annuity of $1.)Note: Use appropriate factor(s) from the tables provided. Round the final answer to nearest whole dollar.Present Value

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Answered: Stores is offering employe severance…

Stores is offering employe severance package of $104,000 cash paid today; $104,000 to be paid in one be paid each year for 3 years. Required:

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter20: Accounting For Leases

Section: Chapter Questions

Problem 10MC: On August 1, 2019, Kern Company leased a machine to Day Company for a 6-year period requiring...

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Question

Hansaben

As a result of a slowdown in operations, Tradewind Stores is offering employees who have been terminated a
severance package of $104,000 cash paid today: $104,000 to be paid in one year; and an annuity of $33,000 to
be paid each year for 3 years.
Required:
What is the present value of the package assuming an interest rate of 12 percent? (Euture Value of $1. Present
Value of $1. Future Value Annuity of $1. Present Value Annuity of $1.)
Note: Use appropriate factor(s) from the tables provided. Round the final answer to nearest whole dollar.
Present Value

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