The four actors below have just signed a contract to star in a dramatic movie about relationships among hospital doctors. Each personsigns independent contracts with the following terms:Contract TermsContractAmountPaymentDateDerekIsabel$490,0002 years530,0003 yearsMeredithGeorge420,000Today390,0001 yearRequired: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 1AReq 1BAssuming 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.)DerekIsabelMeredithGeorgePresent Value< Req 1AReq 1B >

The objective of this question is to calculate the present value of the contract amounts for each…

Answered: The four actors below have just signed…

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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Jane sells a piece of equipment to Derek for $1,800 on August 1. The equipment cost $1,000. Theequipment is picked up by Derek on August 10. The contract also includes a 12-month serviceplan. How many performance obligations does Jane have in this transaction?a. 1b. 2c. 3d. 4
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ABC Inc, a telecommunications operator, entered into a contract with Mr. X on March 1, 20x2. In line with the contract, Mr. X will subscribe to ABC Inc's monthly plan for 12 months and in return Mr. X receives a free cellphone from ABC Inc. Mr. X will pay a monthly fee of P5,000. Mr. X will get immediately the handset after the contract signing. ABC Inc sells the same handset for P26,000 and the same monthly plan for P3,250 per month without the handset. Determine the revenue to recognized by H Inc. on April 30, 20x7. [A] 27,000 [B] 5,000 [C] 3,250 [D] 3,000
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