What would his equivalent annual salary

Assignment Help Accounting Basics
Reference no: EM13144085

In Jan 2009 iker cassilas signed a contracr to play for salsas that guaranteed him a minimum of $9955000. The guaranteed pymts were $875000 in 2009, $650000in 2010, $1m in 2012, $1m in 2013 and $300000 in 2014. Inaddition the contract calls for $5330000 in deferred money payable at the rate of $240k p.a from 2014 to 2030 and then $125k a year from 2013 to 2040.

a) If interest rate is 8% p.a and all payments are made on 1 July each year, what would be the present value of these guaranteed payments be on 1 January 2009.

b) If he were to receive an equal salary at the end of each of the 5 years from 2009 to 2014, what would his equivalent annual salary be!

Reference no: EM13144085

Questions Cloud

Depreciation for the first year of the trucks useful life : Finx, Inc., purchased a truck for $35,000. The truck is expected to be driven 15,000 miles per year over a five-year period and then sold for approximately $5,000. Determine depreciation for the first year of the truck's useful life by the straigh..
What is the new volume of the gas : The volume of a gas is 93 mL when the temperature is 91 C. if the temperature is reduced to 0 C without changing the pressure, what is the new volume of the gas
What is the specific heat of the unknown substance : 35.5 grams of an unknown substance is heated to 103.0 degrees Celsius and then placed into a calorimeter containing 100.0 grams of water at 24.0 degrees Celsius.
On what date does this note mature : Keshena Co. borrows $240,000 cash on November 1, 2009, by signing a 180-day, 10% note with a face value of $240,000. On what date does this note mature?
What would his equivalent annual salary : If he were to receive an equal salary at the end of each of the 5 years from 2009 to 2014, what would his equivalent annual salary be!
How many milliliters of .02 m hcl are used : How many milliliters of .02 M HCl are used to completely neutralize 20.0mL of .01 M NaOH solution?
How this affect the financial statements : Why are there differences between taxable and financial income? What are some examples of permanent and temporary differences? Why do these differences exist? How do they affect the financial statements?
An organizational development : Question 35  An organizational development effort involves __________.Answer   employees at all levels of the organization.  mainly top leaders.  mainly middle management.  just employees at the lower levels of the organization.
What is non-controlling interest share of thelma net income : The land had a book value of $32,000 and was sold to Norek for $45,000. Thelma's reported net income for 2009 was $119,000. What is non-controlling interest's share of Thelma's net income?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Briefly explain the depreciation and impairment process

Briefly explain the depreciation and impairment process in relation to approximating the fair value of fixed assets?

  Declining-balance method of depreciation

A company that changes from the declining-balance method of depreciation for previously recorded assets to the straight-line method should report the change as a(n)

  Make the journal entry

Brennan Steel Corporation as lessee signed a lease agreement for equipment for five years, starting December 31, 2007. yearly rental payments of $32,000 are to be made at the beginning of each lease year.

  Investments-stocks-shares and dividends

Big Brother Holdings, Inc. had the following available-for-sale investment portfolio at January 1, 2002. Prepare journal entries for each of the above transactions.

  What is an audit procedure

How does the auditor's responsibility for detecting errors differ from their responsibility to detect fraud?

  Cash collections from accounts receivable

The company expects to sell 20% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale, 25% in the month following the sale, and the remainder in the following month. The cash collections in Sep..

  Describe the financial statement misstatements

For inadequacies in internal controls describe the financial statement misstatements that may arise, and describe how they may occur.

  Manufacturing overhead budget by quarters

For Savage Inc. variable manufacturing overhead costs are expected to be $20,000 in the first quarter of 2005 with $2,000 increments in each of the remaining three quarters. Fixed overhead costs are estimated to be $35,000 in each quarter. Prepare..

  Calculate the first year net income

In its first year of operations, Harden Con. earned $39,000 in revenues and received $33,000 cash from these customers. The company incurred expenses of $22,500 but had not paid $2,250 of them at year-end. The company also prepaid $3,750 cash for ..

  What accounting standard provides the authoritative guidance

What accounting standard provides the authoritative guidance for asset impairments? Briefly discuss the scope of the standard (i.e., explain the types of transaction to which the standard applies).

  Record the above transactions in journal entries

Learned Corporation recorded the following transactions for the just completed month.

  Common and preferred stock shareholders

ABC reported earnings before interest and taxes $600,000 for 2010 and was subject to a 40% tax rate. ABC paid dividends to all common and preferred stock shareholders during the year. Calculate ABC's basic earnings per share for 2010. Show your wo..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd