A Company Wants to Have $40,000 at the End of a Five-Year

question 9

Multiple Choice

A company wants to have $40,000 at the end of a five-year period through investment of a single sum now. How much needs to be invested in order to have the desired sum in five years, if the money can be invested at 10% (Ignore income taxes.) ? Use Exhibit 7B-1 and Exhibit 7B-2, to determine the appropriate discount factor(s) using the tables provided. (Round your intermediate calculations to 3 decimal places.)

• A) $10,551
• B) $8,000
• C) $24,840
• D) $12,882

Identify and calculate controlling and non-controlling interests in a consolidated financial statement.

Analyze the impact of intercompany transactions on consolidated financial statements.

Apply the cost method and the equity method for investments in financial accounting.

Compute the adjustments necessary for consolidating financial statements including the elimination of intercompany sales and unrealized profits.

---

Definitions:

Autonomic System

Portion of the peripheral nervous system that regulates internal organs.

SA Node

The sinoatrial node, a group of cells located in the right atrium of the heart, acts as a natural pacemaker by generating electrical impulses that initiate each heartbeat.

Pacemaker

Cells of the sinoatrial node of the heart; electrical device designed to mimic the normal electrical patterns of the heart.

Hepatic Portal Vein

A vein that transports blood to the liver from the spleen and gastrointestinal tract.