Reference no: EM133065764

Questions -

Q1) What would you pay for an investment that pays you $44000 at the beginning of each year for the next ten years? Assume that the relevant interest rate for this type of investment is 12%.

A. $278443

B. $292611

C. $248607

D. $261261

Q2) Joseph won a lottery that will pay him $480000 at the end of each of the next twenty years. Assuming an appropriate interest rate is 10% compounded annually, what is the present value of this amount?

A. 71347

B. 4495159

C. 27492000

D. 4086509

Q3) Find the present value of an investment in plant and equipment if it is expected to provide annual earnings of $62000 for 15 years and to have a resale value of $122000 at the end of that period. Assume a 8% rate and earnings at year end. The present value of 1 at 8% for 15 periods is 0.31524. The present value of an ordinary annuity at 8% for 15 periods is 8.55948. The future value of 1 at 8% for 15 periods is 3.17217.

A. 672352

B. 569147

C. 530688

D. 1090844

Q4) Bramble Corp. sold $118000 of goods and accepted the customer's $118000 9%, 1-year note receivable in exchange. Assuming 9% approximates the market rate of return, what would be the debit in this journal entry to record the sale?

A. No journal entry until cash is collected

B. Debit Notes Receivable for $107380

C. Debit Notes Receivable for $118000

D. Debit Accounts Receivable for $118000

Q5) Sheffield Corp. had a 1/1/20 balance in the Allowance for Doubtful Accounts of $33000. During 2020, it wrote off $21800 of accounts and collected $6490 on accounts previously written off. The balance in Accounts Receivable was $620000 at 1/1 and $730000 at 12/31. At 12/31/20, Sheffield estimates that 7% of accounts receivable will prove to be uncollectible. What is Bad Debt Expense for 2020?

A. $36500

B. $18100

C. $33410

D. $39900