ABC Appliances contracted to provide kitchen appliances for an apartment complex for $93,500. Several months later, ABC discovered that a mathematical error had been made in the bid and that the bid should have been for an additional $30,150 and refused to deliver the appliances. What remedies does the apartment complex owner have? (Hint: There are multiple contract remedies here)
Q: Answer True, False or Uncertain. Briefly explain your answer. 4. The rate of return equality is…
A: Equity Premium Puzzle-We all are aware that higher the risk involved, greater will be the return.…
Q: r Peg for Hong Kong. The Hong Kong dollar (HKD) has long been pegged to the U.S. dollar (USD) at…
A: The pegging is one way of the pegging the currency with other currency like dollars and the value of…
Q: Consider a 10 year, 1000 par value bond with 5% annual coupons. Find the value of the bond, if yield…
A: Given, The Par value is 1000 Annual coupon rate is 5% Yield rate is 7.2%
Q: ssume that you need $1,000 four years from today. Your bank compoundsinterest at an 8 percent annual…
A: The future value of the amount includes the amount being deposited and the amount of compound…
Q: Consider the following cash flows of the three independent projects available to the company. Assume…
A: Given,
Q: Jesse borrowed $30,000. The company plans to set up a sinking fund that will repay the loan at the…
A: Sinking fund is a fund created where regular payments are being made to repay the loan at the end of…
Q: Suppose an investor buys a bond with a nominal value of € 10,000 and a maturity of four years.…
A: Here, Face value of the bond (FV) = €10,000 Term to maturity (NPER) = 4 years Yield to maturity…
Q: Krista borrowed $14,095. The loan is to be repaid by three equal payments due in 88, 169, and 252…
A: Borrowed amount is $14,095 Interest rate is 7% Payment period is 88,169,252 days To Find: Size of…
Q: Assume a 30-year life project with an initial capital cost of $250 million, an annual operating cost…
A: The benefit-cost ratio of a project is used to indicate the overall value of the project. It uses…
Q: Round your answers to the nearest cent. a. What is the value of a stock if: Do $1.20 k = 13% 9 = 9%…
A: Dividend growth model The model, which assumes that the growth of dividends remains the same…
Q: State whether each of the following statement is true or false and explain your answer. 1. The…
A: Value of firm Company value refers to the current value of a company in the market. The value of the…
Q: Date DJIA S&P 500 January 6 11,998 1,278 January 13 12,022 1,289…
A: Date DJIA S&P 500 Jan-06 11,998.00 1,278.00 Jan-13 12,022.00…
Q: Calculate the expected value of the scenario. X₁ P(x₁) -$0.25 0.1 SO 0.5 $0.25 0.1 $0.50 0.3
A: Xi P(Xi) $ -0.25 0.1 $ - 0.5 $ 0.25 0.1 $…
Q: At age 31 you invest $1,500 that earns 8 percent each year. At age 46 you invest $1,500 that earns…
A: Given Amount invested is $1500 rate is 8% and 11%
Q: The Dahlia Flower Company has earnings of $1.44 per share. If the benchmark PE for the company is…
A: Earning per share is $1.44 per share 1.) Benchmark PE for the company is 13 2.) Benchmark PE is 16…
Q: You deposit $200 each month into an account earning 6% interest compounded monthly. a) How much will…
A: Monthly deposit (C) = $200 Monthly interest rate (r) = 0.005 Monthly period (n) = 180 (i.e. 15 years…
Q: The annual growth rate of your investment can be measured by A. THE ANNUAL MEAN OF YOUR ANNUAL…
A: Several methods have been prescribed to measure the annual growth rate of an investment. We have to…
Q: Sheila is planning to retire in 9 years. For 9 years, at the end of each year Sheila plans to invest…
A: Annual investment (C) = $6,000 Interest rate (r) = 0.07 Number of investments (n) = 9 Final value =…
Q: edia Bias Incorporated issued bonds 10 years ago at $1,000 per bond. These bonds had a 30-year life…
A: Solution:- Bond price means the price at which a bond is trading in the market. It is the summation…
Q: Will Stephanie have enough funds for her investment in stocks and bonds, when needed? What will be…
A: Given: Particulars Pan Elixir Rebound Cheers Think local Last year dividend $2.50 $0.50 $1.00…
Q: Assume an investor with a utility of the form U= E -0.5As2 . For the risk aversion values of A=1 The…
A: We first need to find the expected return E and standard deviation s for each of the two…
Q: Calculate the required information for Mortgage, (Round to Neores to Nearest Cent)
A: Given, Amount financed is 164,300 Interest rate is 7.25% Term of loan is 25
Q: The future value in thousands of dollars of an annuity of 500 months and a monthly payment of $380,…
A: Three different graphs have been given to represent the FV of three different annuities. We have to…
Q: Consider a synthetic forward option, with the strike price, K = $19, while the initial stock price =…
A: The synthetic forward contract is used to create an artificial forward position by buying/selling a…
Q: E-Eyes.com has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20…
A: Information Provided: Dividend = $20 Period = 20 years Required return = 8.75%
Q: You own a portfolio that has $5,758 invested in Stock A and $1,616 invested in Stock B. If the…
A: Expected Portfolio or the overall rate of return of Portfolio is the total return which is generated…
Q: If the average, long term inflation rate is 3%, how many years does it take for prices to double?…
A: Lets assume current price (PV) = $1 Therefore Future price (FV) = $2 Inflation rate (I) = 0.03…
Q: Question 6 Prior to the 2008 financial crisis, how did the selling of bonds by the Fed impact the…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: f the following is a loan, identify a) the principal amount, b) the monthly interest rate, and c)…
A: Loans are paid by the equal monthly installments that carry the payment for interest and payment for…
Q: Find the EAR in each of the following cases: (Use 365 days a year. Do not round intermediate…
A: Effective Annual Rate is the actual rate earned on any investment when even the interests earn…
Q: Regarding question 4. can you calculate the Bond value for pleasant Innovation? the question never…
A: Pleasant Innovation: Data given: Face Value=$100 Issue Price=$100*98% = $98 Coupon rate=3% (paid…
Q: sing the expectations hypothesis: You observe the following bonds trading in the market: a 1-year…
A: Based on the expectation theory the shor term interest follow the long term trend of interest and…
Q: ring a special sales the amount of $22,000 at a rate of 4.5%/year compounded monthly. Her bank is…
A: When you take a loan you usually make monthly periodic payments for servicing the loan. This monthly…
Q: Find the periodic payment for each of the following scenarios, where m is the periodic deposit and r…
A: Future Value rate( r) Compounding frequency time in years $2,00,000.00 7.40% annually 5 $…
Q: The price of a (non-dividend) stock is $21 and the price of a 3-month European call option on the…
A: The Put-Call Parity: The put call parity explains the relationship between the spot price, call and…
Q: Investment X offers to pay you $6,100 per year for 9 years, whereas Investment Y offers to pay you…
A: Investment X Payment per year $ 6,100.00 Time period(years) 9.00 Discount rate 5% &15%…
Q: 9. Consider two alternatives: 62 A B Cost $650 $425 Uniform annual benefit 95 95 Useful life, in…
A: Net present value is the difference between the present value of cash flow and initial investment…
Q: Define systematic and unsystematic risk. What method is used to measure a firm's market risk?
A: Risk -It is the volatility of returns. There are several types of risks: i) Systematic risk ii)…
Q: Hardwig Inc. is considering whether to pursue a restricted or relaxed current asset investment…
A: Given, Sales $3,600,000 EBIT is $150,000
Q: A pair of jeans with an original price of $64 are on sale at 30% off. What is the sale price of the…
A: Consumer discounts are offered by brands and vendors to promote sale
Q: You have an HO policy with the following limits: A $75,000 (dwelling) B-S 7,500 (other structures)…
A: Characteristics of an HO policy have been provided. We have to find the amount insured will claim…
Q: How might capital rationing conflict with the goal of maximizing shareholders' wealth?
A: Capital rationing means the company has limited capital that must be invested in the most profitable…
Q: Clifford Clark is a recent retiree who is interested in investing some of his savings in corporate…
A: A) Bonds which trade at the par or face value are known as Par bonds. In this case, the coupon rate…
Q: United Kingdom Imports. Toyota manufactures in Japan most of the vehicles it sells in the United…
A: Solution:- Spot rate means the rate of one currency denoted in another currency.
Q: An 8% semiannual coupon bond matures in 4 years. The bond has a face value of $1,000 and a current…
A: The proportion of the bond price that is realized as the coupon payment in one year is called the…
Q: Why is the salvage value $480,000 in the spread sheet? Is that supposed to be $240,000?
A: Given: Fixed asset will have a market value of $240,000 at the end of the project. Working Note#1…
Q: I don't understand where the number 19.88798 comes from
A: In this question we are provided with the factor table. Hence we will have to use the values in the…
Q: Suppose the real risk-free rate is 2.5%, the average future inflation rate is 2.3%, a maturity…
A: Information Provided: Real risk-free rate = 2.5% Inflation rate = 2.3% Maturity risk premium = 0.07%…
Q: 3. Laura invested $325 per month into a retirement plan with an APR of 2.2% for 35 years. a. How…
A:
Q: The principal P is borrowed at a simple interest rate r for a period of time t. Find the simple…
A: We need to use simple interest formula to calculate simple interest owe for the money. The formula…
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- Citation Builders, Incorporated, builds office buildings and single-family homes. The office buildings are constructed under contract with reputable buyers. The homes are constructed in developments ranging from 10−20 homes and are typically sold during construction or soon after. To secure the home upon completion, buyers must pay a deposit of 10% of the price of the home with the remaining balance due upon completion of the house and transfer of title. Failure to pay the full amount results in forfeiture of the down payment. Occasionally, homes remain unsold for as long as three months after construction. In these situations, sales price reductions are used to promote the sale. During 2024, Citation began construction of an office building for Altamont Corporation. The total contract price is $23 million. Costs incurred, estimated costs to complete at year-end, billings, and cash collections for the life of the contract are as follows: 2024 2025 2026 Costs incurred during…Citation Builders, Inc., builds office buildings and single-family homes. The office buildings are constructedunder contract with reputable buyers. The homes are constructed in developments ranging from 10–20 homesand are typically sold during construction or soon after. To secure the home upon completion, buyers must paya deposit of 10% of the price of the home with the remaining balance due upon completion of the house andtransfer of title. Failure to pay the full amount results in forfeiture of the down payment. Occasionally, homesremain unsold for as long as three months after construction. In these situations, sales price reductions are usedto promote the sale.During 2018, Citation began construction of an office building for Altamont Corporation. The total contractprice is $20 million. Costs incurred, estimated costs to complete at year-end, billings, and cash collections for thelife of the contract are as follows:2018 2019 2020Costs incurred during the year $ 4,000,000 $…Citation Builders, Incorporated, builds office buildings and single-family homes. The office buildings are constructed under contract with reputable buyers. The homes are constructed in developments ranging from 10-20 homes and are typically sold during construction or soon after. To secure the home upon completion, buyers must pay a deposit of 10% of the price of the home with the remaining balance due upon completion of the house and transfer of title. Failure to pay the full amount results in forfeiture of the down payment. Occasionally, homes remain unsold for as long as three months after construction. In these situations, sales price reductions are used to promote the sale. During 2024, Citation began construction of an office building for Altamont Corporation. The total contract price is $10 million. Costs incurred, estimated costs to complete at year-end, billings, and cash collections for the life of the contract are as follows: Costs incurred during the year Estimated costs…
- Citation Builders, Incorporated, builds office buildings and single-family homes. The office buildings are constructed under contract with reputable buyers. The homes are constructed in developments ranging from 10-20 homes and are typically sold during construction or soon after. To secure the home upon completion, buyers must pay a deposit of 10% of the price of the home with the remaining balance due upon completion of the house and transfer of title. Failure to pay the full amount results in forfeiture of the down payment. Occasionally, homes remain unsold for as long as three months after construction. In these situations, sales price reductions are used to promote the sale. During 2024, Citation began construction of an office building for Altamont Corporation. The total contract price is $18 million. Costs incurred, estimated costs to complete at year-end, billings, and cash collections for the life of the contract are as follows: Costs incurred during the year Estimated costs…The Donovan Co. is nearing completion of a construction contract. The work has not gone to plan due to the issues outlined below: 1. The client requested a variation in the contract by requiring new security devices to be fitted, at an additional cost to Donovan of P1,00,000. The client has accepted reponsibilty for these additional costs even though they were not originally agreed. 2. Donovan has carried out additional work on the contract as there had been building errors. This cost P2,500,000 and the client refuses to accept responsibility. Which, if either, of the above issues should be included in contract revenue, according to IAS 11, Construction Contracts? a. Neither issue b. Issue (1) only c. Issue (2) only d. Both issue (1) and issue (2)1. During the year, Agency XYZ entered into a contract with a third party for the construction of a new building. The contract price was P14,500,000.00. The new building was not finished on the agreed deadline due to lack of equipment needed for the construction. The contractor was charged for liquidation damages worth P500,000. The agency director also wanted its old building to be connected to the new building for the convenience of its employees and also of the public. Letters were sent out to interested third parties for this project and a date was set up for the bidding. Estimated cost of the project is P5 million. How much is the cost of the building?
- 1. During the year, Agency XYZ entered into a contract with a third party for the construction of a new building. The contract price was P15 million. The new building was not finished on the agreed deadline due to lack of equipment needed for the construction. The contractor was charged for liquidation damages worth P500,000. The agency director also wanted its old building to be connected to the new building for the convenience of its employees and also of the public. Letters were sent out to interested third parties for this project and a date was set up for the bidding. Estimated cost of the project is P5 million. How much is the cost of the building?Mr. Sandro, a real estate developer, enters a contract with Arnold Reyes to sell a building for P1 million. Arnold intends to open a warehouse in the building for his sticky rice products. The building is in an area where new buildings face high levels of competition and Arnold has little experience in the rice treading industry. As a result, the contract price of P 100,000,000 is not probable as to its collectability. From the details above, can we account for the contract as a contract revenue from the customer?Cramer subcontracted to Williams the furnishing and installation of all equipment for a large pumping station. The operation of the pumps, said the original contract, was to be guaranteed for one year. When the plant started to operate, certain defects in the pumps were discovered. To whom will the owner look for remedy - the contractor or the subcontractor? Why?
- On January 1, 2017, Build Company entered into a construction contract with an owner to build an oil refinery. The contract has the following characteristics; the oil refinery is highly customized to the owner’s specifications and changes to these specifications by the owner are expected over the contract term. The oil refinery does not have an alternative use to the contractor. Non-refundable, interim progress payments are required as a mechanism to finance the contract. The owner can cancel the contract at any time (with a termination penalty); any work in process is the property of the owner. As a result, another entity would not need to re-perform the tasks performed to date. Physical possession and title do not pass until completion of the contract. The contractor determines that the contract has a single performance obligation to build the refinery. The majority of evidences suggests that the contractor’s performance creates an assets that the customer controls and control is…A wonderland tents and furniture LLC is involved in supplying tents and furniture items to customers for conducting events and celebrations. The company received a claim from customer for OMR. 35,000 as damages because some furniture were not delivered in time for a graduation ceremony. The company admits the delay but disputes the amount of the claim pointing out that alternative furniture arrangement for the event cost no more than OMR. 8,000. How would you advise the wonderland tents and furniture company to treat the claim when finalizing the financial statements for the year. a- Account for the best estimate as liability b- Ignore the claim c- Record a liability of OMR. 35,000 d- Record a liability of OMR. 8,000A buyer working with QRS Realty wants to make an offer on a property. To save time, the buyer makes a verbal offer of $210,000 and the seller agrees. The offer is: -invalid because it does not include a closing date-unenforceable because it is not in writing-voidable because the licensee did not review the offer-unilateral because the contract is not exclusive