Question
On January 1, 2017, Cullumber Corporation sold a building that cost $273,840 and that had accumulated depreciation of $109,280 on the date of sale. Cullumber
On January 1, 2017, Cullumber Corporation sold a building that cost $273,840 and that had accumulated depreciation of $109,280 on the date of sale. Cullumber received as consideration a $263,840 non-interest-bearing note due on January 1, 2020. There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a note of this type on January 1, 2017, was 9%. At what amount should the gain from the sale of the building be reported? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
The amount of gain should be reported
On January 1, 2017, Cullumber Corporation purchased 345 of the $1,000 face value, 9%, 10-year bonds of Walters Inc. The bonds mature on January 1, 2027, and pay interest annually beginning January 1, 2018. Cullumber purchased the bonds to yield 11%. How much did Cullumber pay for the bonds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
Cullumber must pay for the bonds..... |
Cullumber Corporation bought a new machine and agreed to pay for it in equal annual installments of $5,440 at the end of each of the next 10 years. Assuming that a prevailing interest rate of 6% applies to this contract, how much should Cullumber record as the cost of the machine? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
Cost of the machine to be recorded........
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Cullumber Corporation purchased a special tractor on December 31, 2017. The purchase agreement stipulated that Cullumber should pay $20,010 at the time of purchase and $4,720 at the end of each of the next 8 years. The tractor should be recorded on December 31, 2017, at what amount, assuming an appropriate interest rate of 12%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
Cost of tractor to be recorded | $ |
Cullumber Corporation wants to withdraw $123,730 (including principal) from an investment fund at the end of each year for 9 years. What should be the required initial investment at the beginning of the first year if the fund earns 11%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
Required initial investment | $ |
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