The price of a home is $210,000. The bank requires a 5% down payment and three points at the time of closing. The cost of the home is financed with a 30-year fixed-rate mortgage at 7%. a. Find the required down payment. b. Find the amount of the mortgage. c. How much must be paid for the three points at closing? d. Find the total cost of interest over 30 years, to the nearest dollar.

Answer:

a.$31,500

b.$178,500

c.$5355

d.$ 249,021.60  

Explanation:

The down payment is 15% of the price of the home=15%*$210,000=$31500

Amount of mortgage=price of the home-down payment

                                  =$210,000-$31,500=$178,500

Amount to  be paid for 3 points at closing =3%*amount of mortgage

                                                                      =3%*$178,500=$5355

Note that 1 point costs 1 percent of mortgage amount

The amount of repayment monthly can be computed thus:

=pmt(rate,nper,-pv,fv)

rate  is the fixed mortgage of 7%/12

nper is 30 years multiplied by 12=360 months

pv is the mortgage amount of $178,500

fv is the total of mortgage amount and total interest,it is not known

=pmt(7%/12,360,-178500,0)=$ 1,187.56  

Total interest cost=total payment-mortgage amount=($ 1,187.56*360)-$178,500 =$ 249,021.60  

Which of the following statements generates the greatest amount of disagreement among economists? a. Increases in the money supply shift aggregate demand to the right. b. In the long run, increases in the money supply increase prices, but not output. c. Recessions are associated with decreases in consumption, investment, and employment. d. Government should use fiscal policy to try to stabilize the economy.

Information on Carney Company's fixed overhead costs follows: Overhead applied $ 361,200 Actual overhead 387,300 Budgeted overhead 372,000 Required: What are the fixed overhead price and production volume variances? (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

On January 1, 2017, Culver Company issued 10-year, $2,060,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 15 shares of Culver common stock. Culverâs net income in 2017 was $291,000, and its tax rate was 40%. The company had 108,000 shares of common stock outstanding throughout 2017. None of the bonds were converted in 2017.Required:(a) Compute diluted earnings per share for 2017. (Round answer to 2 decimal places, e.g. $2.55.)(b) Compute diluted earnings per share for 2017, assuming the same facts as above, except that $1,080,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Culver common stock.

Your bagel shop uses both capital and labor in the production of bagels. In this production process capital and labor are substitutes. If you install a new oven and the marginal product of capital increases, you will:

a. reduce the number of workers you employ
b. increase the number of workers you employ
c. reduce the amount of capital you are using not make any changes since you are already maximizing profit

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a. Determine the variable costs and the variable cost amount per unit for the production and sale of 10,000 cellular phones. Total variable cost $ Variable cost amount per unit $
b. Determine the variable cost markup percentage for cellular phones. Round to two decimal places.
c. Determine the selling price of cellular phones. If required, round to the nearest dollar.

Which one of the following statements is correct concerning the mutual fund cash ratio​ (MFCR)? A. When mutual funds have a lot of cash it is a bearish signal because managers are not buying stocks. Your answer is not correct.B. A high MFCR is like high short interest in that it indicates pent up demand. This is the correct answer.C. Low mutual fund cash is bullish because it means managers have been buying stocks. D. High mutual fund cash indicates that fund managers might be forced to sell securities should investors wish to withdraw​ funds, a bearish signal.

Foreman Mining purchased land containing a copper deposit for $2,640,000 on January 7, 2021. The company expects to mine 770,000 tons of copper over the next 10 years, and the land is expected to have a residual value of $1,408,000. The company has also purchased mining equipment for $570,000 that will be used only at this site over the 10 years with an estimated residual value of $54,100. By the end of the first year, the company has mined and sold 61,000 tons of copper. What is the cost attributed to copper inventory for 2021, assuming the company uses the units-of-production method?

Conner runs a rafting company on a local river. He runs two kinds of tripslong dash a wild whitewater experience and a more mellow wildlife tour. If he spends the day only doing whitewater​ trips, he can do 2 trips per​ day; if he spends the day only doing wildlife​ trips, he can do 6 trips. If he does some of​ each, however, he can do more total​ trips: 1 whitewater trips and 5 wildlife trips. Suppose that​ Conner's time is valued at ​$15 an hour. What can you say about his economies of​ scope? That​ is, what is the sign of his measure of economies of​ scope, SC?

When Starbucks sells "Starbucks" T-shirts in its coffee shops or when the Chicago Cubs peddle cubs branded merchandise at Wrigley Field, why are their marketers so happy?

g Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $20,000,000 of five-year, 9% bonds at a market (effective) interest rate of 8%, receiving cash of $20,811,010. Interest is payable semiannually on April 1 and October 1. a. Journalize the entry to record the issuance of bonds on April 1, 20Y1. If an amount box does not require an entry, leave it blank. b. Journalize the entry to record the first interest payment on October 1, 20Y1, and amortization of bond premium for six months, using the straight-line method. If an amount box does not require an entry, leave it blank. c. Why was the company able to issue the bonds for $20,811,010 rather than for the face amount of $20,000,000? The market rate of interest is the contract rate of interest.

The following information will be used for 2 questions on this exam: Charlotte Corporation's management keeps track of the time it takes to process orders. During the most recent month, the following average times were recorded per order: Time spent between receipt of order and start of production 3.7 days Time spent ensuring quality levels 0.2 days Time spent working on the product 1.3 days Time spent transporting the product between work stations 0.8 days Time spent waiting to be worked on in the factory 6.9 days What is the throughput time?

A company used straight-line depreciation for an item of equipment that cost $15,350, had a salvage value of $3,200 and a six-year useful life. After depreciating the asset for three complete years, the salvage value was reduced to $1,535 but its total useful life remained the same. Determine the amount of depreciation to be charged against the equipment during each of the remaining years of its useful life: Multiple Choice $2,880. $5,672. $1,215. $2,580. $3,200.

The following information relates to the pension plan for the employees of Turner Co.: 1/1/20 12/31/20 12/31/21 Projected benefit obligation 9,765,000 10,458,000 14,007,000 Fair value of plan assets 8,925,000 10,920,000 12,054,000 AOCI – net (gain) or loss -0- (1,512,000) (1,680,000) Settlement rate (for year) 11% 11% Expected rate of return (for year) 8% 7% Turner estimates that the average remaining service life is 16 years. Turner's contribution was $1,323,000 in 2021 and benefits paid to retired employees was $987,000. The amount of AOCI (net gain) amortized in 2021 is

On January 1, 2021, Hoosier Company purchased $940,000 of 10% bonds at face value. The bond market value was $985,000 on December 31, 2021. Required: Prepare the appropriate journal entry on December 31, 2021, to properly value the bonds assuming the bonds are classified as: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Trading securities. Securities available-for-sale. Held-to-maturity securities.

Neptune Corporation owns 70 percent of Pluto Company's stock. On July 1, 20X4, Neptune sold a piece of equipment to Pluto for $56,350. Neptune had purchased this equipment on January 1, 20X1, for $63,000. The equipment's original 15-year estimated total economic life remains unchanged. Both companies use straight-line depreciation. The equipment's residual value is considered negligible.


79.


Required information


Based on the information provided, in the preparation of the 20X4 consolidated financial statements, equipment will be ______ in the consolidation entries.


debited for $6,650


debited for $56,350


debited for $63,000


credited for $63,000

Which one of the following statements regarding disclosure is true?
1. The seller and licensees need not disclose to a prospective buyer the manner or occurrence of an occupant's death in the home if it occurred within the past three years.
2. HIV/AIDS cannot be disclosed even when asked; by law HIV/AIDS are not material facts that require disclosure.
3. If an occupant died of AIDS or an AIDS-related syndrome within the past three years, that fact must be disclosed to a prospective buyer.
4. If asked by a prospective buyer if an occupant died of AIDS or an AIDS-related syndrome within the last three years, the seller or licensee must reply truthfully if known.

P5-18 Calculating deposit needed. You put $10,000 in an account earning 5%. After 3 years, you make another deposit into the same account. Four years later (7 years after your original $10,000 deposit), the account balance is $20,000. What was the amount of the deposit at the end of year 3

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Todd is working on resource scheduling in preparation for the start of a project. There is a potential problem in the works, however, as the new collective bargaining agreement with the company's union has not been concluded. Todd decides to continue working on the resource schedule in anticipation of a satisfactory settlement. Todd's approach would be an example of which method of dealing with risk

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Coast to Coast Surfboards Inc. manufactures and sells two styles of surfboards, Atlantic Wave and Pacific Pounder. These surfboards are sold in two regions, East Coast and West Coast. Information about the two surfboards is as follows:
Atlantic Wave Pacific Pounder
Sales price $280 $130
Variable cost of goods sold per unit 220 97
Manufacturing margin per unit $60 $33
Variable selling expense per unit 32 18
Contribution margin per unit $28 $15
The sales unit volume for the sales territories and products for the period is as follows:
East Coast West Coast
Atlantic Wave 30,000 21,000
Pacific Pounder 0 21,000
Required:
Prepare a contribution margin by sales territory report. Calculate the contribution margin ratio for each territory as a whole percent

Decision on Accepting Additional Business Homestead Jeans Co. has an annual plant capacity of 65,000 units, and current production is 45,000 units. Monthly fixed costs are $54,000, and variable costs are $29 per unit. The present selling price is $42 per unit. On November 12 of the current year, the company received an offer from Dawkins Company for 18,000 units of the product at $32 each. Dawkins Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Homestead Jeans Co. a. Prepare a differential analysis dated November 12 on whether to reject (Alternative 1) or accept (Alternative 2) the Dawkins order. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss.

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A firm that has an ROE of 12% is considering cutting its dividend payout. The stockholders of the firm desire a dividend yield of 4% and a capital gain yield of 9%. Given this information, which of the following statements is (are) correct? I. All else equal, the firm's growth rate will accelerate after the payout change. II. All else equal, the firm's stock price will go up after the payout change. III. All else equal, the firm's P/E ratio will increase after the payout change. Multiple Choice I only

The Talbot Corporation makes wheels that it uses in the production of bicycles. Talbot's costs to produce 100,000 wheels annually are: Direct materials $30,000 Direct labor $50,000 Variable manufacturing overhead $20,000 Fixed manufacturing overhead $70,000 An outside supplier has offered to sell Talbot similar wheels for $1.25 per wheel. If the wheels are purchased from the outside supplier, $15,000 of annual fixed overhead could be avoided and the facilities now being used could be rented to another company for $45,000 per year. Direct labor is a variable cost. If Talbot chooses to buy the wheel from the outside supplier, then annual net operatingincome would: A. Increase by $35,000 B. Decrease by $10,000 C. Increase by $45,000 D. Increase by $70,000

Assume that Bethany acquires a competitor's assets on March 31st. The purchase price was $150,000. Of that amount, $125,000 is allocated to tangible assets and $25,000 is allocated to goodwill (a §197 intangible asset). What is Bethany's amortization deduction for the current year? (Round final answer to the nearest whole number.)

Hawk-Dove (or Chicken) (t = tough, c = concede)
Two (young) players are engaged in a conflict situation. For instance, they may be racing their cars towards
each other on Main Street, while being egged on by their many friends. If player 1 hangs tough and stays in
the center of the road while the other player concedeschickens outby moving out of the way, then all glory is
his and the other player eats humble pie. If they both hang tough they end up with broken bones, while if
they both concede they have their bodiesbut not their prideintact.
Player 1 \ Player 2 t c
t -1,-1 10,0
c 0, 10 5, 5
The matrix form can be used to compactly represent the strategic form when there are two players even if
each player has more than two strategies to choose from.