Bsbwor501 Final Exam

academic year interest rate of 3.76 percent would pay a 5,032 dollars interest over 10 years,

Perpetual Inventory System: when using this system, you can update the inventory account on a regular basis. The account can be increased or decreased at any time depending on whether it is a purchase or sale of merchandise that has occurred. Under this system, the purchases account does not exist and there is a cost of sales account.

How much would you pay for a security that pays you $500 every 4 months for the next 10 years if you require a return of 8% per year compounded monthly?

8. Karen has $16,000 that she wants to invest for 1 year. She can invest this amount at The North Bank and earn 5.50 percent simple interest. Or, she can open an account at The South Bank and earn 5.39 percent interest, compounded monthly. If Karen decides to invest at The North Bank, she will:

As a future educator, it will be my job to continue acknowledging, valuing and teaching Indigenous origins, histories and cultures using the Australian Institute for Teaching and School (AITSL) standard 2.4 and the Australian Curriculum. This will give my future students a better understanding that Aboriginal and Torres Strait Islander people were the first custodians of our Australian land and of their origins. They lived in Australia 60,000 years before the British settled in 1788. I will teach an Australian historical time line prior to 1788.

Internal Revenue Code section 1221 defines “capital asset” as “property held by the taxpayer (whether or not connected with his trade or business), but does not include (1) Stock in trade of the taxpayer or other property of a kind which would properly be included in the inventory of the taxpayer if on hand at the close of the taxable year, or property held by the taxpayer primarily for sale to customers in the ordinary course of his trade or business.” As defined, Haig Simmons’ anthracite coal home heating and delivery service business holds anthracite coal in the ordinary course of business and therefore, is not considered a capital asset. Section 64 defines ordinary income as income earned from providing services or the sale of goods (inventory) “which is not a capital asset.” Based on this definition, any asset that does not classify as a capital asset is an ordinary asset. Since Haig Simmons was providing home coal heating services for consumers, any inventory kept was for the purpose of maintaining a steady, stable, and regular supply of coal and not held as a long term asset for future sale gains.

b. If you inherited $100,000 today and invested all of it in a security that paid an 8% rate of return, how much would you have in 15 years?

What annual interest rate is needed to produce $200,000 after five years if only $100,000 is invested?

As part of the expansion plan, Wie will acquire some used equipment by signing a zero-interest-bearing note. The note has a maturity value of $50,000 and matures in 5 years. A reliable fair value measure for the equipment is not available, given the age and specialty nature of the equipment. As a result, Wie 's accounting staff is unable to determine an established exchange price for recording the equipment (nor the interest rate to be used to record interest expense on the long-term

10. An investment of $1,000 today will grow to $1,100 in one year. What is the continuously compounded rate of return?

Therefore the annual interest rate is 8% and the effective annual rate compounded quarterly is 8.24%

2. If you had a payment that was due you in 5 years for $50,000 and you could earn a 5% rate of return, how much

Complete an income statement, balance sheet and statement of cash flows for 2011 assuming that sales projects were 20% lower

After the calculations you end up coming out with a rate of 14.87%. The third and final part of question three asks what rate you will need if the interest is compounded semiannually. All you have to do is double the amount of terms and you will come out with a lower number of 7.177%. Since the interest is compounded semiannually that means that you will need to times that number by two and you come out with your final number of 14.35%.

(Compound value solving for I) at what annual rate would the following have to be investe