The municipality of Smallville has arranged to borrow $30 million in order to implement several public projects (flood control, school security, etc.). The interest rate will be 3% per year, payable at the end of each year. This $30 million debt will be retired by making payments of $5 million at the end of each year. The Board of Supervisors is concerned that it will take too long to pay off this debt. How many years will it take to retire this $30 million debt and its associated interest payments?

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A: Data given: Installation Cost = $40000 Operation Cost = $1000 and increases by $300 each year…

Q: Assume that as a local government financial analyst you are asked to project the feasibility of a…

A: Please recall the formula for compounding.If P is the principal, R is the interest rate, N is the…

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A: In this we have to determine the interest cost of each year.

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A: Liabilities represents obligation presented in the balance sheet

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A: B/C ratio is the ratio of the present value of benefits from the project to the initial investment…

Q: The environmental protection agency of Verdesi County would like to preserve a piece of land as a…

A: A lease is an agreement between two parties that specifies the conditions under which one agrees to…

Q: an initial cost of $50,000,000.  The annual maintenance is $1,000,000 per year, each and every year…

A: in this we have to calculate present value of both approaches and select best among them.

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Q: The following transactions relate to Newport City's special revenue Fund. 1. In 2020, Newport City…

A: Answer a:

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A: A financial statistic known as the Benefit-to-Cost Ratio (B/C Ratio) is used to evaluate the…

Q: company need 6,000 in 5 years to buy a new equipment. in order to accumulate this, sum a sinking…

A: The sinking fund method is a systematic way to accumulate the required funds to buy an asset or to…

Q: A county will invest $3,600,000 to clean up a chemical spill that occurred following a natural…

A: > GIven:> MARR = 5%

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A: Present value is the present worth of any sum of money to be received in the future at a specified…

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A: Lets understand the basics. For calculating property tax receivable at year end, we need to use…

Q: working according to the specified conditions. The city also spends another $91, 200 to construct…

A: Capitalization of infrastructure assets is the process of recording long-term assets as capital…

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A: Journal entries refer to the recording of the transactions in the debit and credit format that can…

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Q: Kingbird Corporation wants to withdraw $126,920 (including principal) from an investment fund at the…

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Q: Reynolds County has three large trucks with a total net book value of $600,000 and remaining lives…

A: YEAR B/fwdRentalCapital O/SInterest(5% given)C/fwd1$     600,000 $   (112,581)$ 487,419$24,370.95TO…

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A: Given that;$4800000 will be invested to clean up a chemical spill that occured due to natural…

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A: Here probability  of payment  is higher

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A: Present worth of the project has been calculated by using excel function "NPV"

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Q: The Goodsmith Charitable Foundation, which is tax-exempt, issued debt last year at 9 percent to help…

A: It is the cost of raising capital from debt instruments to the issuer. For debt holders, it is the…

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A: Definition:   Liabilities: The claims creditors have over assets or resources of a company are…

Q: A road is constructed at the capital cost of $10 million.  At the end of Year 10, major improvements…

A: Annualized Cost refers to equivalent cost that is incurred on project on annual basis. It is…

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A: Cash flow diagram is a diagram which shows the cash receipts and cash payments of an organisation in…

Q: The following transactions relate to Newport City's special revenue fund. 1. In 2020, Newport City…

A: Answer:- Special revenue funds are established to ensure that revenues collected from specific…

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A: Though the cost of closure and post-closure will be paid after the landfill reaches its capacity,…

Q: Suppose a city must replace aging water pipes in the city system that is expected to cost $50…

A: Here,Expected Cost of Water Pipes replacement is $50 millionLife of Replaced Water Pipie is 30…

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A: GIVEN DATA On January 1, 2020, the City of Hastings creates a solid waste landfill that it expects…

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Q: As the tax assessor for Indian Creek County, you have been informed that due to budgetary demands…

A: ANSWER:- $ 8,400,000 property tax and dollars was collected under the old rate $7,000,000more tax in…

Q: The government has imposed a fine on JJ’s Place. The fine calls for annual payments of $60,000 one…

A: The idea of a time value of money (TVM) holds that a quantity of income is worth higher right now…

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Q: The city of New Haven is trying to determine how big its capital budget needs to be to pay for the…

A: Initial cost (C) = $5 million Maintenance cost every 3 years (M) = $490000 r = 6%

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.