Reference no: EM131796217
On January 1, 2007, Sandstone Corporation sold a building that cost $250,000 and had accumulated depreciation of $100,000 on the date of sale. A $300,000 non-interest-bearing note due on January 1, 2013 was received as consideration. The prevailing rate of interest for a note of this type on January 1, 2007 was 11%. At what amount should the gain from the sale of the building be reported?
On January 1, 2001, Sandstone Corporation purchased $200,000 face value, 9%, 10-year bonds of Walters Inc. The bonds mature on January 1, 2011, and pay interest annually beginning January 1, 2002. The market rate of interest is 11%. How much did Sandstone pay for the bonds?
Sandstone Corporation brought a new machine and agreed to pay for it in equal annual installments of $4,000 at the end of each of the next 10 years. Assume an 11% market rate of interest applies to this contract, how much was recorded as the cost of the machine?
Sandstone Corporation purchased a special tractor on December 31, 2013. The purchase agreement stipulated that Sandstone should pay $20,000 at the time of purchase and $5,000 at the end of each of the next 8 years. The tractor should be recorded on December 31, 2013, at what amount, assuming the market rate of interest was 11%?
Sandstone Corporation wants to withdraw $100,000 from an investment fund at the end of each year for 9 years. What should be the required initial investment at the beginning of the first year if the fund earns 11%?
|
Period
|
Present Value of $1
|
Present Value of an Ordinary Annuity of $1
|
|
6
|
.53464
|
4.23054
|
|
7
|
.48166
|
4.71220
|
|
8
|
.43393
|
5.14612
|
|
9
|
.39092
|
5.53705
|
|
10
|
.35218
|
5.88923
|
|
Calculate the present value of the expected dividends
: You are evaluating the purchase of Cellars, Inc. common stock that just paid a dividend of $1.80. You expect the dividend to grow at a rate of 12%.
|
|
Variance of the number of republican votes
: Suppose individuals behave independently. Find a the expectation and b) the variance of the number of Republican votes at the second election.
|
|
Previously worked with or for either in business
: Think about someone you previously worked with or for either in a business, in a student organization, on a sports team, as part of a project in another class,
|
|
Post a description of the clients developmental level
: As a counselor, how might you support both a young adult and his or her parents/caregivers during this fragile time?
|
|
What should be the required initial investment at beginning
: What should be the required initial investment at the beginning of the first year if the fund earns 11%
|
|
What is the value of the option to expand
: If success and failure are equally likely, what is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places.
|
|
Find formulae for the mean and variance
: By writing Y as a linear function of X and using results of Exercise 10, find formulae for the mean and variance of Y in terms of a, b, and n.
|
|
Prepare an amortization table of lease
: Prepare an amortization table of lease using the effective interest method to determine the carrying amount of capitalized lease asset and lease obligation.
|
|
Find the smallest upper bound you can
: A random variable X has expectation 10 and standard deviation 5.
|