Calculate the Present Value of $89,000 to Be Received in 15

question 71

Short Answer

Calculate the present value of $89,000 to be received in 15 years, assuming an opportunity cost of 14 percent.

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Definitions:

Adjusting Entries

Entries made in accounting records at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Reversing Entries

are journal entries made at the beginning of an accounting period to reverse or cancel out adjusting entries from the end of the previous period.

Reversing Entries

Journal entries that are made at the beginning of an accounting period to reverse or cancel out adjusting journal entries made at the end of the previous accounting period.

Assets

Resources owned by a company that have economic value and can provide future benefits.