Your Department at Work Places $8,000 Every Year-End into an Account

question 70

Multiple Choice

Your department at work places $8,000 every year-end into an account earning 5%.The money is used when the corporate office fails to fully finance your profitable projects.The money has not been touched since the first deposit was made exactly six years ago.If the most recent deposit was made today,how much money is currently in the account?

• A)$55,256.31
• B)$60,000.00
• C)$65,136.07
• D)$68,019.13

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Definitions:

Fair Value

An estimate of the market value of an asset or liability based on the current market prices or valuations of similar transactions.

Parent-Company Extension Method

An accounting technique where a parent company extends its financial statements to include the financial activities of its subsidiary as if they were its own.

Consolidated Statement

A financial statement that integrates the assets, liabilities, and operating results of a parent company and its subsidiaries.

Carrying Value

The value at which an asset is recognized on the balance sheet, factoring in depreciation, amortization, and impairment charges.