Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter M, Problem 4RE
To determine
Determine the present value on January 1, 2019.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
What is the present value on January 1, 2019, of $10,000 to be received on January 1, 2023, and discounted at 6% compounded quarterly? ____________________________
What is the future value on January 1, 2025, of $20,000 deposited on January 1, 2019, which accumulates interest at 10% compounded annually? ____________________________
What is the interest rate per period and the frequency of compounding per year in each of the following?
If needed, round your interest rate answers to two decimal places.
Interest RatePer Period
Frequency of CompoundingPer Year
a. 18% compounded semiannually
_______%
_______ times
b. 16% compounded quarterly
_______%
_______ times
c. 15% compounded monthly
_______%
_______ times
What is the present value on January 1,
2016, of $40,000 to be received on January
1, 2019, and discounted 8% compounded
annually? Round answer to two decimal
places.
Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value on December 31, 2021, of a five-period annual annuity of $5,000 under each of the following situations:1. The first payment is received on December 31, 2022, and interest is compounded annually.2. The first payment is received on December 31, 2021, and interest is compounded annually.3. The first payment is received on December 31, 2022, and interest is compounded quarterly.
Chapter M Solutions
Intermediate Accounting: Reporting And Analysis
Ch. M - Explain interest.Ch. M - Prob. 2GICh. M - Prob. 3GICh. M - Prob. 4GICh. M - Prob. 5GICh. M - Prob. 6GICh. M - Prob. 7GICh. M - Prob. 8GICh. M - Prob. 9GICh. M - Prob. 10GI
Ch. M - Prob. 11GICh. M - Prob. 12GICh. M - Prob. 13GICh. M - Prob. 14GICh. M - Prob. 15GICh. M - Prob. 16GICh. M - Prob. 17GICh. M - Prob. 18GICh. M - Prob. 19GICh. M - Prob. 20GICh. M - Prob. 21GICh. M - Prob. 22GICh. M - What is a deferred ordinary annuity? How does it...Ch. M - Prob. 24GICh. M - Prob. 25GICh. M - Give two examples of assets and three examples of...Ch. M - Prob. 1MCCh. M - Prob. 2MCCh. M - Refer to the present value table information on...Ch. M - Refer to the present value table information on...Ch. M - On May 1, 2019, a company purchased a new machine...Ch. M - An office equipment representative has a machine...Ch. M - Prob. 7MCCh. M - For which of the following transactions would the...Ch. M - On July 1, 2019, James Rago signed an agreement to...Ch. M - On January 1, 2019, Ken Company sold a machine to...Ch. M - Prob. 1RECh. M - Based on the following annual interest rates, what...Ch. M - Prob. 3RECh. M - Prob. 4RECh. M - Next Level Potter wishes to deposit a sum that at...Ch. M - Prob. 6RECh. M - Prob. 7RECh. M - Prob. 8RECh. M - Prob. 9RECh. M - If 90,000 is invested in a fund on December 31,...Ch. M - Samuel Ames owes 20,000 to a friend. He wants to...Ch. M - Prob. 12RECh. M - Prob. 13RECh. M - Prob. 14RECh. M - Prob. 1ECh. M - Future Value Hugh Colson deposited 20,000 in a...Ch. M - Prob. 3ECh. M - Future Value of Annuity Using appropriate tables,...Ch. M - Prob. 5ECh. M - Prob. 6ECh. M - Prob. 7ECh. M - Cash Flow Amounts R. Lee Rouse borrows 10,000 that...Ch. M - Prob. 9ECh. M - Amount of an Annuity John Goodheart wishes to...Ch. M - Prob. 11ECh. M - Prob. 12ECh. M - Present Value of Leased Asset On January 1, 2019,...Ch. M - Amount of an Annuity Beginning December 31, 2023,...Ch. M - Prob. 1PCh. M - Prob. 2PCh. M - Prob. 3PCh. M - Determining Loan Repayments Jerry Rockness needs...Ch. M - Prob. 5PCh. M - Prob. 6PCh. M - Value of an Annuity Using the appropriate tables,...Ch. M - Serial Installments; Amounts Applicable to...Ch. M - Prob. 9PCh. M - Comprehensive Part a. Reproduced in the following...Ch. M - Prob. 11PCh. M - Present Value of an Annuity John Joshua wants to...Ch. M - Present Value of an Annuity Ralph Benke wants to...Ch. M - Compound Interest Issues You are given the...Ch. M - Cash Flow Amounts On January 1, 2019, Philip...Ch. M - Prob. 16PCh. M - Comprehensive The following are three independent...Ch. M - Prob. 18PCh. M - Asset Purchase Price BWP Inc. is considering the...Ch. M - Prob. 1CCh. M - Prob. 2CCh. M - Prob. 3CCh. M - Prob. 4CCh. M - Prob. 5C
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Amount of an Annuity Beginning December 31, 2023, 5 equal annual withdrawals are to be made. Required: Using the appropriate tables, determine the equal annual withdrawals if 25,000 is invested at an interest of 12% compounded annually on: 1. January 1, 2023 2. December 31, 2023 3. January 1, 2020arrow_forward1) If P175,000 is due on November 25,2019, find the proceeds on August 15, 2020, if the discount rate was 18 %? 2) If the discount rate is 17 2%, find the amount due on P90,500 at the end of one and a half years. 3) Find the discount rate if P10,000 is the present value of P10,500 which is due at the end of 4 months.arrow_forwardSheffield Corp. will receive $26000 today (January 1, 2020), and also on each January 1st for the next five years (2021 – 2025). What is the present value of the six $26000 receipts, assuming a 11% interest rate? $228365. $122093. $203898. $109994.arrow_forward
- Determine the combined present value as of December 31, 2021, of the following four payments to be received at the end of each of the designated years, assuming an annual interest rate of 8%. Payment Year Received $ 5,000 2022 6,000 2023 8,000 2025 9,000 2027arrow_forwardCompute the amount of interest on $835 at 7.5% p.a. from October 8, 2019, to August 4, 2020.arrow_forwardWaterway Industries will receive $26500 today (January 1, 2020), and also on each January 1st for the next five years (2021 – 2025). What is the present value of the six $26500 receipts, assuming a 8% interest rate?arrow_forward
- Calculate the present value as at 1 January 2019 of a series of payments of £100 payable on the first day of each month during 2020, 2021 and 2022, assuming an effective rate of interest of 8% per annum. Calculate this in form of Annuities like in Actuarial Science.arrow_forwardIf you borrow $1000.00 on May 1, 2019, at 12% compounded semi-annually, and interest on the loan amounts to $103.76, on what date is the loan due?arrow_forwardWith an interest rate of 5 percent per year, what is the present value on December 31, 2020 of payments of $400 made on December 31 each year for the next 3 years starting in 2021? The present value on December 31, 2020 of payments of $400 on December 31 each year for the next 3 years starting in 2021 is $ d (answer to 1 decimal place).arrow_forward
- Present Valie computations What is the present value on January 1, 2019, of $30,000 due on January 1, 2023, and discontinued at 10% compounded annually? What is the present value on January 1, 2019, of $40,000 due on January 1, 2023, and discontinued at 11% compounded semiannually?arrow_forwardA 5-year promissory note for $3200 issued on September 15, 2018, with interest at 6.5% compounded annually, was sold on December 1, 2019, at 5% compounded semi-annually. What is the sale price (proceeds) of the note?arrow_forwardAn annuity pays $300 each on January 1 in the Year 2025, 2030, 2035, 2040 and 2045. The annual effective interest rate is 4%. Calculate the present value as of January 1, 2021. Round the answer to the nearest dollar.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning