The four actors below have just signed a contract to star in a dramatic movie about relationships among hospital doctors. Filming is expected to take two years to complete. Each person signs independent contracts today with the following terms: Contract Terms Contract Amount Payment Date 2 years Derek Isabel Meredith George Required: $ 430,000 470,000 370,000 3 years 330,000 Today 1 year 1-a. Assuming an annual discount rate of 8%, calculate the present value of the contract amount. (FV of $1, PV of $1, FVA of $1, and PVA of $1) 1-b. Which of the four actors is actually being paid the most?

The four actors below have just signed a contract to star in a dramatic movie about relationships among hospital doctors. Filming is expected to take two years to complete. Each person signs independent contracts today with the following terms: Contract Terms Contract Amount Payment Date 2 years Derek Isabel Meredith George Required: $ 430,000 470,000 370,000 3 years 330,000 Today 1 year 1-a. Assuming an annual discount rate of 8%, calculate the present value of the contract amount. (FV of $1, PV of $1, FVA of $1, and PVA of $1) 1-b. Which of the four actors is actually being paid the most?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 9MC

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Exercise 5-5 (Algo) Present value; single amount (LO 5-3)
The four actors below have just signed a contract to star in a dramatic movie about relationships among hospital doctors. Filming
is expected to take two years to complete. Each person signs independent contracts today with the following terms:
Contract Terms
Contract
Amount
Payment
Date
2 years
Derek
Isabel
Meredith
George
Required:
$ 430,000
470,000
3 years
370,000
330,000
Today
1 year
1-a. Assuming an annual discount rate of 8%, calculate the present value of the contract amount. (FV of $1, PV of $1, FVA of $1.
and PVA of $1)
1-b. Which of the four actors is actually being paid the most?

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The four actors below have just signed a contract to star in a dramatic movie about relationships among hospital doctors. Filming is expected to take two years to complete. Each person signs independent contracts today with the following terms: Derek Isabel Meredith George Contract Req 1A Contract Amount $430,000 470,000 370,000 330,000 Required: 1-a. Assuming an annual discount rate of 8 %, calculate the present value of the contract amount. (EV of $1. PV of $1. EVA of $1. and PVA of $1) 1-b. Which of the four actors is actually being paid the most? Complete this question by entering your answers in the tabs below. Derek Terms Payment Date 2 years. 3 years. Today 1 year Req 18 Assuming an annual discount rate of 8%, calculate the present value of the contract amount. Note:Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. Present Value
The four actors below have just signed a contract to star in a dramatic movie about relationships among hospital doctors. Each person signs independent contracts with the following terms: Derek Isabel Meredith George Contract Terms Contract Amount $450,000 490,000 525,000 350,000 Payment Date 2 years 3 years Today 1 year Required: 1-a. Assuming an annual discount rate of 10%, calculate the present value of the contract amount. 1-b. Which of the four actors is actually being paid the most?
vi.3
The four actors below have just signed a contract to star in a dramatic movie about relationships among hospital doctors. Each person signs independent contracts with the following terms: Contract Terms Contract Amount Payment Date Derek Isabel $490,000 2 years 530,000 3 years Meredith George 420,000 Today 390,000 1 year Required: 1-a. Assuming an annual discount rate of 8%, calculate the present value of the contract amount. 1-b. Which of the four actors is actually being paid the most? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Assuming an annual discount rate of 8%, calculate the present value of the contract amount. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) Derek Isabel Meredith George Present Value
am. 118.
Don't give answer in image format
Problem 1-25 (AICPA Adapted) Lovie Company offered three payment plans on twelve-month contracts. The entity provided the following information on the three plans and the number of children enrolled in each plan from September 1, 2022 through August 31, 2023 contract year: # 1 #2 #3 Initial payment per child 50,000 20,000 Monthly fee per child a. 330,000 b. 438,000 c. 660,000 d. 990,000 3,000 5,000 Number of children 15 12 9 The entity received P990,000 of initial payments on September 1, 2022, and P324,000 of monthly fees during the period September 1 through December 31, 2022. On December 31, 2022, what amount should be reported as deferred revenue?
Q1: What is an onerous contract? Give two examples of an onerous contract. Q2: Alvarado Company sells a machine for $7,400 with a 12-month warranty agreement that requires the company to replace all defective parts and to provide the repair labor at no cost to the customers. With sales being made evenly throughout the year, the company sells 600 machines in 2022 (warranty expenditures are expected half in 2022 and half in 2023). As a result of product testing, the company estimates that the total warranty cost is $390 per machine ($170 parts and $220 labor). Instructions Assuming that actual warranty expenditures occur exactly as estimated, what journal entries would be made relative to the following facts? Sale of machinery and warranty expenditures occur in 2022. Warranty accrual on December 31, 2022. Warranty expenditures occur in 2023. What amount, if any, is disclosed in the statement of financial position as a liability for future warranty expenditures as of…
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On december 31, 20x1 Eugene enter into a contract with Plankton to transfer a license for a fixed dee of 100000 payable as follows: 20% upon signing of contract and 80% in 4 equal annual installments starting December 31, 20x2. The appropriate discount rate is 12%. How much contract revenue will Eugene recognize in 20x1?
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