Problem regarding retirement

Assignment Help Accounting Basics
Reference no: EM13158269

Tom wants to retire at the end of this year (2010). His life expectancy is 20 years from his retirement. Tom has come to you, his CPA, to learn how much he should deposit on December 31, 2010 to be able to withdraw $40,000 at the end of each year for the next 20 years, assuming the amount on deposit will earn 8% interest annually.

Reference no: EM13158269

Questions Cloud

Budgeted overhead per unit : Expected sales are 40,000 units; expected production is 50,000 units; practical (maximum) capacity is 100,000 units. If Tayla Industries uses a normal costing system and a plantwide predetermined overhead rate, the budgeted overhead per unit is:
Medicare and medicaid in terms of services : Describe Medicare and Medicaid in terms of services, financing, reimbursement, and those covered. What is the effect on taxpayers for these services?
Which erp system should manuel purchase : Manuel%u2019s uses a 4-year planning horizon and a 10 percent per year MARR. Based on an internal rate of return analysis, which ERP system should Manuel purchase?
What is the function of the lac operon : Describe the regulation of the trp operon (a) in the presence of tryptophan and (b) the absence of tryptophan. Name all components involved and tell where they bind.
Problem regarding retirement : Tom wants to retire at the end of this year (2010). His life expectancy is 20 years from his retirement. Tom has come to you, his CPA, to learn how much he should deposit on December 31, 2010 to be able to withdraw $40,000 at the end of each year ..
Essay on domestic policy : I need someone to provide for me a structure of ideas to write my essay on a domestic policy. Here are the instructors instructions by essay outline:
Why is the policy necessary : Why is the policy necessary? The welfare of consumers, producers, and society (the winners and losers) before and after the policy.
Patriot movement with the religious and racial supremacist : Compare and contrast the Patriot movement with the religious and racial supremacist right
Product design and capacity determination : How is process selection related to product design and capacity determination? Post should be 200-250 words.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Shares of common stock out-standing

Misty's effective tax rate is 40% and there were 1,000 shares of common stock outstanding.

  What is the net present value of machine

Assume that revenue is to be recieved at each year end. and the machine has a useful life of three years with zero salvage value. Management requires a 12% return on its investments. what is the net present value of this machine?

  Direct-indirect foreign investment

What are some advantages and disadvantages of different types of direct and indirect foreign investments?

  Operating activities under indirect method

In Metro's current year cash flow statement, the reported net cash provided by operating activities under the indirect method should be:

  Income of the partnership

In the first year of the partnership, its cash-basis incom was $100,000, $50,000 of which was the collection of the transferred receivables. When is the income of the partnership reported and by whon?

  Substantive tests of transactions

Design tests of controls, substantive tests of transactions, and analytical procedures for the following Apollo Shoes cycles:

  Depreciation expense-double declining balance method

The camera cost $9,000 and is expected to last four years. Assume that the camera has a salvage value of 900. Calculate Fairfolk's 2008 depreciation expense relating to the camera, using the double-declining balance method.

  Realization of the gain on the sale of land

On November 8, 2006, Power Corp. sold land to Wood Co., its wholly owned subsidiary. The land cost $61,500 and was sold to Wood for $89,000. From the perspective of the combination, when is the gain on the sale of the land realized?

  Problem on report the bond liability

On December 31 year 1 Todd Corporation issued 500 of its 10% $1,000 bonds at 105. Todd Corporation uses IFRS. The bonds were issued through an underwriter to whom Todd paid bond issue costs of $15,000. On December 31 Year 1 balance sheet Todd shou..

  Overhead cost calculation for individual lawyer

A lawyer allocates overhead costs based on his hours working with different clients. The lawyer expects to have $200,000 in overhead during the year and expects to work on clients' cases for 2,000 hours during the year.

  Kinnion medical clinic has budgeted the cash flows

Kinnion Medical Clinic has budgeted the following cash flows, Kinnion Medical had a cash balance of $8,000 on January 1. The company desires to maintain a cash cushion of $5,000. Funds are assumed to be borrowed, in increments of $1,000,

  Different types of sampling methods

What are some of the different types of sampling methods that are available to the auditor? How does the auditor decide which method to use? How will the different methods affect the audit?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd