Intermediate Accounting

30.(1.5 points) On 12-31-15 Acme entered into an agreement that required Acme to pay someone $250,000 on 12-31-28. Assume the appropriate market rate of interest for Acme was 15%.

As of 12-31-15, what was the present value of Acme’s obligation?

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

As of 12-31-21, what was the present value of Acme’s obligation?

As of 12-31-24, what was the present value of Acme’s obligation?

31.(1 point) On 12-31-13 Austin entered into an agreement that required Austin to pay a supplier $600 every year on 12-31 until 2021. The agreement required Austin to make the first annual payment on 12-31-14. Assume the market rate of interest for Austin is 8%. As of 12-31-13 what was the present value of Austin’s obligation?

32.(2.5 points) On 12-31-14 J entered into an agreement allowing J to collect the following:

Starting 12-31-14, $2,500 every 12-31 until 2022.

On 12-31-23, a one-time collection of $7,000.

Nothing in 2024 or 2022.

Starting 12-31-25, $1,000 every 12-31 until 12-31-40.

How much total cash will J eventually collect?

Assume a market interest rate of 2%. As of 12-31-14, what was the present value of J’s receivable?

33.(3 points) On 12-31-16 O entered into an agreement that allowed O to collect the following:

Starting 12-31-19, $5,000 every 12-31 until 2026

Nothing in 2027

Starting 12-31-28, $1,000 every 12-31 until 12-31-81

Assume a market interest rate of 6.5%. As of 12-31-16, what was the present value of O’s receivable?

34.(2 points) On 12-31-13 O accepted a 3%, 6-year, $500,000 note in exchange for services O rendered to P. O will collect the note principle in full upon maturity and O will collect interest every December 31 starting December 31, 2014. The market rate of interest at the time services were rendered was 2%. What was the present value of O’s receivable as of 12-31-13?

35.(2 points) On 12-31-16 Ashley entered into an agreement that required Ashley to pay a supplier $80 every quarter (every 3 months) starting 03-31-17. Ashley’s last quarterly payment will be 12-31-22. Assume the market rate of interest for Ashley is 8%. As of 12-31-16 what was the present value of Austin’s obligation?

 
"If this is not the paper you were searching for, you can order your 100% plagiarism free, professional written paper now!"

"Do you have an upcoming essay or assignment due?


Get any topic done in as little as 6 hours

If yes Order Similar Paper

All of our assignments are originally produced, unique, and free of plagiarism.