The four actors below have just signed a contract to star in a dramatic movie about relationships among hospital doctors. Each personsigns independent contracts with the following terms:Contract TermsContractAmountPaymentDateDerekIsabel$490,0002 years530,0003 yearsMeredithGeorge420,000Today390,0001 yearRequired:1-a. Assuming an annual discount rate of 8%, calculate the present value of the contract amount.1-b. Which of the four actors is actually being paid the most?Complete this question by entering your answers in the tabs below.Req 1AReq 1BAssuming an annual discount rate of 8%, calculate the present value of the contract amount. (FV of $1, PV of $1, FVA of$1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.)DerekIsabelMeredithGeorgePresent Value< Req 1AReq 1B >

Req 1A: Present Value CalculationsDiscount Rate (r): 8% per yearTime (t): We need to find the…

Answered: The four actors below have just signed…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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An uninsured patient cannot pay for a major life threatening surgery. ABC Health offers the patient long term financing where the entire amount can be paid in full for 3 years. The cash price of the surgery is $100,000.00 and a contract is issued with an implicit rate of 5.5% Beginning Ending Year 1 2 3 Accounts Instructions A. Record the journal entry as of the surgery date Accounts $100,000.00 Accounts $111,303.00 Accounts Debit Accounts B. At the end of the first year ABC recognizes interest associated with the loan Debit $105,500 Debit Interest C. At the end of the second year ABC recognizes interest associated with the loan Debit $5,500 $5,803 $6,122 Debit Credit D. At the end of the third year ABC recognizes interest associated with the loan Credit Credit Credit E. The patient pays the full amount of the loan receivable at the end of the third year Credit $105,500.00 $ 111,303.00 $ 117,425.00
The four actors below have just signed a contract to star in a dramatic movie about relationships among hospital doctors. Each person signs independent contracts with the following terms: Contract Terms Contract Amount Payment Date Derek Isabel Meredith George $600,000 640,000 500,000 500,000 2 years 3 years Today 1 year Required:Assuming an annual discount rate of 9%, which of the four actors is actually being paid the most?
Dog Quaker State Incorporated offers a new employee a single-sum signing bonus at the date of employment. Alternatively, the employee can receive $8,300 at the date of employment plus $23,000 at the end of each of his first four years of service. Assuming the employee's time value of money is 10% annually, what lump sum at employment date would make him indifferent between the two options?
DITO Corp. a telecommunications operator, entered into a one-year contract with Kim on March 1, 20x7. In lined with the contract, Kim receives a free Apple I-phone handset from DITO, Kim will pay a monthly fee of P1,200. Kim gets the handset immediately after contract signature. DITO sells the same handset for P3,600 and the same monthly plans for P800 per month without handset. Allocate the transaction price to the performance obligations: the allocated transaction price to each performance obligations? a. None, since there is no contract b. P9,600 network service and P3,600 for Apple I-phone Handset c. P0 for network service and P13,200 for Apple I-phone Handset d. P10,473 network service and P3,927 for Apple I-phone Handset
An HVAC technician is comparing pension plans for two different job offers.First offer: $58,000 average annual wage, 1.6% per year of service, with a monthly pension payment of $1,546.67 after 20 years of serviceSecond offer: $64,900 average annual wage, 1.3% per year of serviceThe technician plans to work for the same amount of time at each company. What is the difference in monthly pension payments? The first offer pays $150.40 more per month. The second offer pays $150.40 more per month. The first offer pays $140.50 more per month. The second offer pays $140.50 more per month.
Suraya wants to Buy a building. He went to apply financing with standard chartered. After proper assessment, standard chartered bank provides a financing facility under Murabahah to the Purchase Orderer principle. Financing amount: RM800,000 Rate of return: 8.2% Financing tenure: 10 years At the end of the contract, Suraya still has an outstanding amount of RM40,000. As part of condition of the Murabahah contract, Suraya will be charged an annual penalty fee of 4% for any outstanding amount due and the amount will be donated to charitable organisation. Question: (a) Record journal entries to record all of the above transactions in standard chartered bank's books (Please show your workings/calculations).
SmaGlo, Inc., a telecommunications operator, entered into a contract with Kim Dorothy on March 1,20x7. In line with the contract, Kim Dorothy subscribes for SmaGlo's monthly plan for 12 months and in retum Kim Dorothy receives a free Apple I-Phone handset from SmaGlo. Kim Dorothy will pay a monthly fee of P1,200. Kim Dorothy gets the handset immediately after contract signature. SmaGlo sells the same handsets for P2,400 and the same monthly plans for P800 per month without handset. On March 31,20x7, the amount of accounts receivable to be recorded A. 1,200 B. None
Rakesh
A rookie of a professional sport is negotiating his first professional contract. His opportunity cost is 10%. Hehas been offered three possible 4-year contracts. Payments are guaranteed, and they would be made at the end ofeach year. Terms of each contract are as follows:YearsS 1 2 3 4 dContract 1 $3,000,000 $3,000,000 $3,000,000 $3,000,000Contract 2 $2,000,000 $3,000,000 $4,000,000 $5,000,000Contract 3 $7,000,000 $1,000,000 $1,000,000 $1,000,000As his adviser, which contract would you recommend that he should accept?
help me
On 1 July 2021, McTavish Ltd, and organisation involved in the surfing industry, provided two weeks of surfing lessons to a group of middle-aged executives employed by Big Town Ltd. The lessons concluded on 15 July 2021. The contract required Big Town Ltd to make one payment of $20,000 to McTavish on 15 July 2021 and another payment of $20,000 on 15 July 2022. McTavish typically provides credit to such customers at an annual interest rate of 8%. Required:Prepare journal entries that McTavish Ltd needs to record to recognise revenues associated with the above surfing lessons on 15 July 2021 and on 15 July 2022 in accordance with AASB 15 Revenue from Contracts with Customers.
William Corp. enters into a contract with a customer to build an apartment building for $1,056,300. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $136,200 to be paid if the building is ready for rental beginning August 1, 2026. The bonus is reduced by $45,400 each week that completion is delayed. William commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by August 1, 2026 August 8, 2026 August 15, 2026 After August 15, 2026 Transaction price $ Probability LA 70 % 20 Determine the transaction price for this contract. 5 5 SUPPORT

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