Gary King, a professional athlete, currently has a contract that will pay him a large amount in the first year of his contract and smaller amounts thereafter. He and his agent have asked the team to restructure the contract. The team, though reluctant, obliged. Gary and his agent came up with a counteroffer. Year 1 2 3 4 Current Contract $7,318,000 $3,585,820 $3,870,000 $4,063,500 $2,655,000 $3,770,100 $1,707,000 $3,670,050 Problem 6.34 a-d(a) Your answer is correct. Present value Team's Offer What is the present values of Current Contract using a 14 percent discount rate? (Round answer to 2 decimal places, e.g. 15.25. Do not round factor values.) eTextbook and Media Problem 6.34 a-d(b) 12,199,867.99 Using multiple attempts will impact your score. 50% score reduction after attempt 2 Counteroffer $4,756,700 $8,010,900 $3,557,700 $2,628,780 Attempts: 1 of 3 used What is the present values of Team's Offer using a 14 percent discount rate? (Round answer to 2 decimal places, e.g. 15.25. Do not round factor values.)

Gary King, a professional athlete, currently has a contract that will pay him a large amount in the first year of his contract and smaller amounts thereafter. He and his agent have asked the team to restructure the contract. The team, though reluctant, obliged. Gary and his agent came up with a counteroffer. Year 1 2 3 4 Current Contract $7,318,000 $3,585,820 $3,870,000 $4,063,500 $2,655,000 $3,770,100 $1,707,000 $3,670,050 Problem 6.34 a-d(a) Your answer is correct. Present value Team's Offer What is the present values of Current Contract using a 14 percent discount rate? (Round answer to 2 decimal places, e.g. 15.25. Do not round factor values.) eTextbook and Media Problem 6.34 a-d(b) 12,199,867.99 Using multiple attempts will impact your score. 50% score reduction after attempt 2 Counteroffer $4,756,700 $8,010,900 $3,557,700 $2,628,780 Attempts: 1 of 3 used What is the present values of Team's Offer using a 14 percent discount rate? (Round answer to 2 decimal places, e.g. 15.25. Do not round factor values.)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 5MC

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