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Sunday, November 14, 2010

Valix Finacc vol 1 Problem 15-26 to 30

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 15 Problem 15-26 to 30


Problem 15-26 Answer  D  


Cost of land (5,400,000 x 2/5)                                                                              2,160,000     

Problem 15-27  Answer  B

Cash price                                                                                                             950,000     
Installation cost                                                                                                        30,000
Total cost                                                                                                                980,000

Problem 15-28  Answer  C 


Cash price                                                                                                           2,000,000     
Installation cost                                                                                                        50,000    
Total cost                                                                                                             2,050,000                 
Problem 15-29  Answer  B

Present value of first note payable (500,000 x 5.65)                                            2,825,000
Present value of second note payable (3,000,000 x .80)                                     2,400,000
Total cost of machinery                                                                                       5,225,000

Problem 15-30  Answer  D


First payment on December 30, 2008                                                                     200,000
Present value of next 7 payments (200,000 x 4.712)                                               942,400
Total cost of machine                                                                                         1,142,400

Another computation:

PV of annuity of 1 in advance for 8 periods (200,000 x 5.712)                             1,142,400     

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