Question
note: please answer the questions with showing the calculations. not in table Answer each of the following unrelated questions: a.Gilbert Corporation bought new equipment and
note: please answer the questions with showing the calculations. not in table
Answer each of the following unrelated questions:
a.Gilbert Corporation bought new equipment and agreed to pay for it in four equal annual installments of $10,000beginning at the start of year 1.Assuming that a prevailing interest rate of 6% applies to this contract, how much should Gilbert record as the cost of the equipment?
Gilbert Corporation purchased a special convey or system on December 31st of the current year. The Purchase agreement stipulated that Gilbert should pay $50,000 at the time of purchase and $15,000 at the end of each of the next 5 years. Assuming an appropriate interest rate of 10%, at what amount should the company record as the cost of the conveyor system?
Gilbert Corporation wants to with draw $100,000 from an investment fund at the end of each year for 12 years.What should be the required initial investment at the beginning of the first year of the fund earns 6%?
On January 1st, Gilbert Corporation sold $1,000,000 face value, 6%, 20-year bonds(i.e., 6% is the stated interest rate). The bonds pay interest annually beginning with December 31st of the current year. The bond were sold to yield 8%to the bondholders (i.e., 8% is the market rate of interest). At what amount did Gilbert Sell the bonds?
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