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Derivations: - Computational

This document contains derivations for computational problems related to finance and accounting. It shows the calculations and steps taken to arrive at the answers for multiple choice questions 47 through 94. The derivations include present and future value calculations, loan amortization schedules, lease calculations, and other financial computations.

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HAKUNA MATATA
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92 views4 pages

Derivations: - Computational

This document contains derivations for computational problems related to finance and accounting. It shows the calculations and steps taken to arrive at the answers for multiple choice questions 47 through 94. The derivations include present and future value calculations, loan amortization schedules, lease calculations, and other financial computations.

Uploaded by

HAKUNA MATATA
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

DERIVATIONS — Computational

No. Answer Derivation

47. b $90,000 + (————


$495,000
10
× —) = $94,125.
1
12

48. c $671,008 × .08 = $53,681, $671,008 ÷ 15 = $44,734.

49. c $3,000,000 ÷ 6.14457 = $488,236 (PV of Ordinary Annuity Table).

50. d $488,236 + $10,000 = $498,237.

51. a Conceptual, FV exceeds cost.

52. c Conceptual.

53. c $3,000,000 ÷ 10 = $300,000.

54. d 8/10 = .8 > 75% of economic life.

55. c ($102,000 - $15,000) × 4.99271 = $434,366.

56. c $1,173,685 – $200,000 = $973,685 × .10 = $97,369


$973,685 – ($200,000 – $97,369) = $871,054.

57. a ($208,493 – $50,000) × .10 = $15,849.

58. b [$158,493 – ($50,000 - $15,849)] × .10 = $12,434.

59. d $880,264 – $150,000 = $730,264.

60. c $227,448 × .10 = $22,745; ($227,448 – 0) ÷ 7 = $32,493.

61. c [$227,448 – ($60,000 – $22,745)] × .10 = $19,019.

62. d ($450,000 – $50,000) ÷ 8 = $50,000.

63. b $155,213 × 2.48685 = $385,991;

$385,991
———— = 96% > 90%.
$400,000

64. b Conceptual.

65. c $400,000 – [$155,213 – ($400,000 × .1)] = $284,787.


$155,213 – ($284,787 ×.1) = $126,734.

66. a Fails to meet Group II requirements.


67. c Fair value = $400,000.

DERIVATIONS — Computational (cont.)


No. Answer Derivation
68. d Conceptual.

69. a Sele: ($60,000 × 6) + ($75,000  6) – (4,800,000 ÷ 8) = $210,000


Snead: ($60,000) × 6 = $(360,000)
Quirk: ($75,000) × 6 = $(450,000).

70. d $720,000.

71. a $720,000 – $64,000 – $360,000 = $296,000.

72. b [$400,000 – ($40,000 × .50663)] ÷ 4.60478 = $82,465.

73. c $8,800 – $16,000 = ($7,200).

74. c ($525,000 – $75,000) × .09 × 6/12 = $20,250.

75. c $560,000 – $496,000 = $64,000; ($560,000 – $80,000) × .09 × 6/12 =


$21,600.

76. a $4,500,000 1
————— × — = $225,000.
10 2

($4,500,000 – $621,000) × .04 = $155,160.

77. b $4,500,000 – $3,900,000 = $600,000.


($4,500,000 – $621,000) × .04 = $155,160.

78. c $1,861,875 – $1,650,000 = $211,875.


($1,861,875 – $300,000) × .04 = $62,475.

79. c Conceptual.

80. b $40,000 $400,000


———— = 10% or ————— = 6.1446*
$400,000 $65,098.13
*6.1446 = PV factor of ordinary annuity of $1 for 10 years at 10%.

81. d [($400,000 – $40,000) ÷ 15] + $37,490 = $61,490.

82. d $316,925 (See amortization table.)

*83. b ($400,000 – $360,000) ÷ 15 = $2,667.

*84. b $7,000 × 6 = $42,000.


DERIVATIONS — CPA Adapted
No. Answer Derivation
85. c Conceptual.

86. a ($160,000 × 4.7908) – $160,000 = $606,528.

87. d $2,502,000 – $630,000 + $30,000 = $1,902,000 (2007).


$1,902,000 – [$600,000 – ($1,902,000 × .10)] = $1,492,200 (2008).

88. a Conceptual.

89. d $900,000 × .10 = $90,000.

90. d $900,000 ÷ 15 = $60,000.

91. c Conceptual.

92. a $770,000 – $600,000 = $170,000.

*93. d Conceptual.

*94. d $85,000
———— = 9.44%, < 10% of FV of asset  it is a minor leaseback.
$900,000

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