50.1K

Verified Solution

Link Copied!

image

On January 1, 2025, Teal Corporation sold a building that cost $259,320 and that had accumulated depreciation of $102,520 on the date of sale. Teal received as consideration a $249,320 non-interest-bearing note due on January 1,2028 . 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, 2025, 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 $ eTextbook and Media Attempts: 0 of 5 used (b) On January 1, 2025, Teal Corporation purchased 311 of the $1,000 face value, 9\%, 10-year bonds of Walters Inc. The bonds mature on January 1, 2035, and pay interest annually beginning January 1, 2026. Teal purchased the bonds to yield 11%. How much did Teal 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.) Teal must pay for the bonds $ eTextbook and Media Teal Corporation bought a new machine and agreed to pay for it in equal annual installments of $4,570 at the end of each of the next 10 years. Assuming that a prevailing interest rate of 8% applies to this contract, how much should Teal 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 $ eTextbook and Media Attempts: 0 of 5 used (d) Teal Corporation purchased a special tractor on December 31, 2025. The purchase agreement stipulated that Teal should pay $18,650 at the time of purchase and $5,190 at the end of each of the next 8 years. The tractor should be recorded on December 31,2025 , 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 $ Teal Corporation wants to withdraw $123,180 (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 $ eTextbook and Media

Answer & Explanation Solved by verified expert

See Answer