What is the approximate capitalized value of the subsidy

Assignment Help Financial Accounting
Reference no: EM132974215

Question - A proposal states that the construction costs of building a dam will be repaid by the affected farmers, through an interest-free, 30-year bond. The cost is $300 an acre. Suppose a farmer has 100 acres, and a total of $30,000 is to be repaid. Per the proposal, the farmer has no payments for the first five years. Then, $1,000 is to be paid at the end of each year, for 30 years to pay off the $30,000.

Is the farmer receiving a subsidy? Why? If the interest rate is 10 percent, what is the approximate capitalized value of the subsidy if any?

Reference no: EM132974215

Questions Cloud

What amount should adams company report as total accounts : The balance in Adams Company's accounts payable on December, What amount should Adams Company report as total accounts payable as of December 31, 2021?
What is philosophy of education : Our ethics become transparent to our friends, family, and colleagues based on how we conduct ourselves in given situations during day-to-day interactions.
Give the necessary adjustment on december : Give the necessary adjustment on December 31 assuming Jefferson uses the net method and the account with Celeron is still unpaid as of December 31.
Determine the sample size needed : A manufacturer of tires would like to estimate the average tire life of its premium brand in terms of how many miles it lasts. Determine the sample size needed
What is the approximate capitalized value of the subsidy : Is the farmer receiving a subsidy? Why? If the interest rate is 10 percent, what is the approximate capitalized value of the subsidy if any
What other options exist besides wfh and layoffs : Assume you are the manager of human resources at a manufacturing company that employs about 200 part time workers. A recent cyclical downturn in your industry d
Explain the effects of the note payable on the statement : Explain the effects of the note payable on the 2020 Statement of Comprehensive Income. Triple Company issued an 8% note with a principal amount
What are the factors that affect the reliability of evidence : What is the difference between quantitative and qualitative materiality considerations and Describe the two main alternative audit strategies that may
Mindlessness techniques impact self-efficacy : In the discussion forum, you are expected to participate often andengage in deep levels of discourse. Please post your initial response as early as possible and

Reviews

Write a Review

Financial Accounting Questions & Answers

  Discuss ethical considerations in relation to conflict

Discuss ethical considerations in relation to conflict of interest, confidentiality and disclosure requirements as outlined in the Code.

  What rate of return does the investor expect to receive

The projected growth at a rate of dividends for this stock is 5.33 percent per year. What rate of return does the investor expect to receive on this stock

  Which statement incorrect when company decides to increase

Which statement is incorrect when a company decides to increase its cash discount? Collection expenses will go down./ Bad debt expenses will decrease

  What amount would be considered sunk costs

What amount would be considered sunk costs? Hi-Tech Inc. has several outdated computers that cost a total of $17,800 and could be sold as scrap for $4,600.

  What is number of adjusted admissions

Assume our hospital has inpatient charges of $20 million and outpatient charges of $15 million. What is number of adjusted admissions

  Recommend two desired characteristics of a board

Provide support for your response, citing the ways in which these characteristics usually lead to effective corporate governance.

  Analyse the cash flows of the company

Calculate the cash balance as at 31 May 2020 if the cash balance on 31 May 2019 was R200 000 (favourable). Analyse the cash flows of the company.

  Compute what is the price per share of a stock

What is the price per share of a stock which just paid out a $10 dividend if the expected growth rate is 3% and investors require a 20% rate of return?

  Prepare a multiple and single step income statement

Prepare a multiple-step income statement - Prepare a single-step income statement.

  Find how much must be deposited at beginning of each

Find How much must be deposited at the beginning of each of the next eighteen years to fund the education?(Rounded your answer to nearest €).

  Compute budgeted fixed factory overhead per unit

Kister Electronics had a fixed factory overhead budget for 20X0 of $72 million. The company planned to make and sell 9 million units of a particular communications device. All variable manufacturing costs per unit were $18. Compute Kister’s budgeted ..

  What were the sources of conflict between bell and sharpe

Which of the five conflict resolution techniques does each man prefer in handling his conflict? Is there another conflict resolution approach would recommend?

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