E1 Computing the Value of a Pension Agreement and InterestOn January 1, the Wiek Company contracted with its president, T. Mae, to make a single deposit immediately to establisha fund with a trustee that pays Mae $40,000 per year for each of the three years following retirement. Mae will retire after10 years on December 31, and the three equal annual payments are to be made by the trustee each December 31 startingat the end of the 11th year. The trustee will add to the fund 8% annual compound interest each year-end. The fund is tohave a zero balance on December 31, immediately after the last payment to the president.When answering the following questions, round your answers to the nearest whole number.Do not use negative signs with your answers.a. Compute the present value of the pension obligation.Answerb.How much of the total amount paid to the president during the payout period is provided Answerby interest earned during the three-year payout period?

Pension is a financial arrangement in which the beneficiary or the pensioner will get a lump sum…

Answered: On January 1, the Wiek Company…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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whats happening with question 11 and 12? answer please
C, D, E
1. I n w h i c h , i f a n y , o f t h e i n v e s t m e n t s s h o w n i n t h e f o l l o w i n g t a b l e d o y o u r e c o m m e n d t h a t t h e f i r m i n v e s t ? E x p l a i n y ou r a n s w e r . H o w m u c h n e w f i n a n c i n g i s r e q u i r e d ? ( N o t e : T h e p i c t u r e a t t a c h e d i s f o r t h e n o . 1 q u e s t i o n )
b. Discuss the effect on c and p, when there is an increase in: i. So ii. iii. O K
A, B, C
pls answer no. 4 and 5
Any update on D,E,F
Define Rule of 78
E x p l a i n t h e l i m i t a t i o n s o f b r e a k e v e n a n a l y s i s.

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