Accounting problems need solution to. Using the appropriate interest table, answer the following questions

Exercise 6-4 Using the appropriate interest table, answer the following questions. (Each case is independent of the others). Click here to view factor tables What is the future value of 24 periodic payments of $4,130 each made at the beginning of each period and compounded at 8%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) $ The future value Click here to view factor tables What is the present value of $3,290 to be received at the beginning of each of 27 periods, discounted at 5% compound interest? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) $ The present value Click here to view factor tables What is the future value of 16 deposits of $3,540 each made at the beginning of each period and compounded at 10%? (Future value as of the end of the 16th period.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) $ The future value Click here to view factor tables What is the present value of 8 receipts of $3,160 each received at the beginning of each period, discounted at 9% compounded interest? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) The present value $ Click if you would like to Show Work for this question: Open Show Work Exercise 6-6 (Part Level Submission) Presented below are three unrelated situations. (a) Bridgeport Company recently signed a lease for a new office building, for a lease period of 11 years. Under the lease agreement, a security deposit of $12,100 is made, with the deposit to be returned at the expiration of the lease, with interest compounded at 5% per year. Click here to view factor tables What amount will the company receive at the time the lease expires? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) $ The company will receive Exercise 6-6 Presented below are three unrelated situations. Swifty Company recently signed a lease for a new office building, for a lease period of 10 years. Under the lease agreement, a security deposit of $14,110 is made, with the deposit to be returned at the expiration of the lease, with interest compounded at 5% per year. Click here to view factor tables What amount will the company receive at the time the lease expires? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) The company will $ receive Nash Corporation, having recently issued a $20,139,700, 15-year bond issue, is committed to make annual sinking fund deposits of $616,500. The deposits are made on the last day of each year and yield a return of 10%. Click here to view factor tables Will the fund at the end of 15 years be sufficient to retire the bonds? $ Future value of an ordinary annuity Will funds be sufficient? Nash Corporation, having recently issued a $20,139,700, 15-year bond issue, is committed to make annual sinking fund deposits of $616,500. The deposits are made on the last day of each year and yield a return of 10%. Click here to view factor tables Determine the amount of deficiency. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) $ Deficienc y Under the terms of his salary agreement, president Newman Walters has an option of receiving either an immediate bonus of $77,000, or a deferred bonus of $98,000 payable in 10 years. Click here to view factor tables Ignoring tax considerations and assuming a relevant interest rate of 4%, which form of settlement should Walters accept? $ Present value of deferred bonus Exercise 6-10 Consider the following independent situations. Click here to view factor tables John Finley wishes to become a millionaire. His money market fund has a balance of $144,026 and has a guaranteed interest rate of 8%. How many years must John leave that balance in the fund in order to get his desired $725,000? (Round answer to 0 decimal places, e.g. 45.) years Assume that Cindy Williams desires to accumulate $725,000 in 13 years using her money market fund balance of $166,151. At what interest rate must Cindy's investment compound annually? (Round answer to 0 decimal places, e.g. 5%.) Interest rate % Exercise 6-12 The Buffalo Inc., a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners, would like to increase its market share in the Sunbelt. In order to do so, Buffalo has decided to locate a new factory in the Panama City area. Buffalo will either buy or lease a site depending upon which is more advantageous. The site location committee has narrowed down the available sites to the following three very similar buildings that will meet their needs. Building A: Purchase for a cash price of $618,300, useful life 27 years. Building B: Lease for 27 years with annual lease payments of $71,360 being made at the beginning of the year. Building C: Purchase for $651,500 cash. This building is larger than needed; however, the excess space can be sublet for 27 years at a net annual rental of $6,090. Rental payments will be received at the end of each year. The Buffalo Inc. has no aversion to being a landlord. Click here to view factor tables In which building would you recommend that The Buffalo Inc. locate, assuming a 11% cost of funds? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Building A Building B Net Present Value $ $ Building C $ The Buffalo Inc. should locate itself in Exercise 6-18 Assume that Sonic Foundry Corporation has a contractual debt outstanding. Sonic has available two means of settlement. It can either make immediate payment of $2,519,000, or it can make annual payments of $308,100 for 15 years, each payment due on the last day of the year. Click here to view factor tables Which method of payment do you recommend, assuming an expected effective interest rate of 9% during the future period? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Present Value of annual payments $ Recommended payment method Problem 6-1 Answer each of these unrelated questions. Click here to view factor tables On January 1, 2017, Splish Corporation sold a building that cost $272,980 and that had accumulated depreciation of $108,410 on the date of sale. Splish received as consideration a $262,980 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, Splish Corporation purchased 331 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. Splish purchased the bonds to yield 11%. How much did Splish 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.) $ Splish must pay for the bonds Splish Corporation bought a new machine and agreed to pay for it in equal annual installments of $4,190 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 Splish 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 Splish Corporation purchased a special tractor on December 31, 2017. The purchase agreement stipulated that Splish should pay $18,210 at the time of purchase and $4,870 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 Splish Corporation wants to withdraw $129,980 (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 Problem 6-4 Leon Long has just learned he has won a $500,600 prize in the lottery. The lottery has given him two options for receiving the payments. (1) If Leon takes all the money today, the state and federal governments will deduct taxes at a rate of 46% immediately. (2) Alternatively, the lottery offers Leon a payout of 20 equal payments of $39,200 with the first payment occurring when Leon turns in the winning ticket. Leon will be taxed on each of these payments at a rate of 26%. Click here to view factor tables Compute the present value of the cash flows for lump sum payout. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) $ Lump sum payout Assuming Leon can earn an 10% rate of return (compounded annually) on any money invested during this period, compute the present value of the cash flows for annuity payout. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) $ Present value of annuity payout Which pay-out option should he choose