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1. A company borrowed cash from the bank by signing a 6-year, 8% installment note. The...

1. A company borrowed cash from the bank by signing a 6-year, 8% installment note. The present value for an annuity (series of payments) at 8% for 6 years is 4.6229. The present value of 1 (single sum) at 8% for 6 years is .6302. Each annual payment equals $75,100. The present value of the note is:

A.48,735.64 B.16,245.21 C.119,168..52 D. 450,600 E. 347,179.79

2. Barber and Atkins are partners in an accounting firm and share net income and loss equally. Barber's beginning partnership capital balance for the current year is $303,000, and Atkins's beginning partnership capital balance for the current year is $317,000. The partnership had net income of $328,000 for the year. Barber withdrew $99,000 during the year and Atkins withdrew $28,000. What is Barber's ending equity?

A. 631,000 B. 532,000 C. 382,000 D. 467,000 E. 368,000

3. A company must repay the bank a single payment of $30,000 cash in 6 years for a loan it entered into. The loan is at 8% interest compounded annually. The present value of 1 (single sum) at 8% for 6 years is .6302. The present value of an annuity (series of payments) at 8% for 6 years is 4.6229. The present value of the loan (rounded) is:

A. 30,000 B. 18,906 C. 23,829 D. 138,678 E. 6,489

4. Marlow Company purchased a point of sale system on January 1 for $6,000. This system has a useful life of 10 years and a salvage value of $700. What would be the depreciation expense for the second year of its useful life using the double-declining-balance method?

A. 530 B. 960 C. 1060 D. 896 E. 1200

5. Marwick Corporation issues 10%, 5 year bonds with a par value of $1,140,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8%. What is the bond's issue (selling) price, assuming the following Present Value factors:

1n= i= Present Value of an Annuity
(series
of payments)		 Present value of 1
(single sum)
5 10 % 3.7908 0.6209
10 5 % 7.7217 0.6139
5 8 % 3.9927 0.6806
10 4 % 8.1109 0.6756

A. 1,140,000 B. 677,679 C. 1,602,321 D. 1,232,505 E. 929,244

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Answer #1

Problem 1 -

Each Annual Payment $75,100
x Present Value for an annuity at 8% for 6 years 4.6229
Present Value of Note $347,179.79

Present Value of Notes is the Present Value of all annunity series. Hence, annuity series is for equal amount and Present Value for annuity at 8% for 6 years given.

The correct option is  E. 347,179.79

Hope the above calculations, working and explanations are clear to you and help you to understand the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you

Pls ask separate question for other parts problems

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