Amortization Essay

As a hybrid of partnerships and corporations, LLC’s provide limited liability for debts and flexibility to be taxed as a partnership or corporation (Staring and Naming a Business Presentation, 2012, Slide 5). Some specific advantages include being empowered authorities in the management of the business, diversity of members, limited liability, pass-through taxation, and less paperwork (appreciated by many). A drawback of this business structure is the need for a tailored operating agreement that specifies the specific needs of the

AND AMORTIZATION 100% 16 CALCULATING INTEREST

Know which of the following statements is not true regarding the characteristics of a general partnership?

It would also be beneficial to set up a limited liability company. (LLC) A LLC limits the partner’s liability to your basis in the company

$30,000 of liabilities assumed by the corporation is $500 that relates to a personal expenditure. Under these

In Question 6, the payment occurs at the beginning of each period rather than at the end, this type of annuity is named as annuity due.

1) Establish the principal and interest amount of the monthly payment. Using the 30 year loan principal and interest amount of the payment is $1,150.92

Taxable interest. Attach Schedule B if required . . . . . . . . . . . . . . . . . . . . . . .

Week 8 DQ 4Is the compound interest formula—such as would be used to calculate a car loan—an

Assume Amy has $45,000 in Federal student loan debt at 6.0% interest rate on a 10-year, standard repayment plan. Amy decides to refinance her loans to private loans to get a lower interest rate. Amy and her lender agree to a new loan with a principal balance of $45,000 at a 4.0% interest rate for a period of 25 years. Using a simple amortization calculator, I came up with the following calculations:

Even though most of these expenses are not of big magnitude their value can add up and affect the company’s finances. Some of these items are accrued time for employees, bonuses, benefits, utilities, improvements and taxes. Some additional sources of working capital include; cash reserves, profits, equity loans, line of credit, and long term loans.

John Stacey: That seems strange to me. Since loans are the reason interest payments are

Corporations are a different type of business. They are more complex to start because more paperwork is involved and the corporation generally has to be registered at the state level. An ordinary corporation is formed through the articles of incorporation. These corporations are legal entities, and therefore bear legal responsibility. The shareholders of the corporation do not bear legal liability. In addition, corporate income is taxed differently it does not flow through to the owner's personal income tax statements. The

However, many companies also amortize so-called ‘one-time expenses’ by listing them as a capital expense (on C/F) and paying the cost by amortization, hence improving the company’s net income.

One of these is with regards to goodwill and intangible assets with identifiable useful lives.