Reference no: EM133112663
Question - On January 1, 2017, Zircon Enterprises purchased a piece of equipment with a list price of $60,000. The following amounts were related to the equipment purchase:
-Terms of the purchase were 2/10, net 30. Zircon paid for the purchase on January 8.
-Freight costs of $1,000 were incurred.
-A state agency required that a pollution control device be installed on the equipment at a cost of $2,500.
-During installation, the equipment was damaged and repair costs of $4,000 were incurred.
-Architect's fees of $6,200 were paid to redesign the work space to accommodate the new equipment.
-Zircon purchased liability insurance to cover possible damage to the asset. The three-year policy cost $8,000.
-Zircon financed the purchase with a bank loan. Interest of $3,000 was paid on the loan during 2016.
Required - Determine the acquisition cost of the equipment.
|
Calculate the portfolio delta and gamma
: An Australian financial institution has a long position in 1,100 call options and written 1,500 call options and written 1,300 put options on the same currency.
|
|
Prepare an income statement statement of retained earnings
: Ignoring income taxes and earnings per share, prepare an Income Statement (multi-step), Statement of Comprehensive Income and Statement of Retained Earnings
|
|
Determine the composition of the riskless portfolio
: A European call option with a strike price of $10.40 which expires in five months is written over a stock that is currently priced at $10.00. It is known that a
|
|
Marking the first payment
: You wish to accumulate $1 million 15 years from now. You will make 15 bank deposits in your bank with today marking the first payment.
|
|
Determine the acquisition cost of the equipment
: A state agency required that a pollution control device be installed on the equipment at a cost of $2,500. Determine the acquisition cost of the equipment
|
|
What will be the loan balance at the end of year
: A floating rate mortgage loan is made for $100,000 for a 30-year period at an initial rate of 12 percent interest. However, the borrower and lender have negotia
|
|
Evaluate cash flows
: What are the advantages of using the payback period to evaluate cash flows? Are there any circumstances under which using payback might be appropriate? Explain.
|
|
Marketing strategies to engage generation
: What is unique about Generation Z in terms of marketing? Do online advertisements work with this generation? Explain.
|
|
What is the before-tax cost of debt for olympic
: One is a 5% coupon bond with a face value of $33 million, a maturity of 10 years, and a yield to maturity of 6%. What is the before-tax cost of debt for Olympic
|