Employers’ responsibilities for payroll do not include:

The present value of an annuity is equal to the sum of the individual future values for each payment.

A single liability cannot be divided between current and noncurrent liabilities.

Salvage value is an estimate of an asset’s value at the end of its benefit period.

A company borrowed cash from the bank by signing a 5-year, 8% installment note. The present value of an annuity factor at 8% for 5 years is 3.9927. The present value of a single sum at 8% for 5 years is .6806. Each annual payment equals $75,000. The present value of the note is:

The effective interest method assigns a bond interest expense amount that increases over the life of a premium bond.

Employers’ responsibilities for payroll do not include:

Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine’s useful life is estimated to be 5 years, or 300,000 units of product, with a $15,000 salvage value. During its first year, the machine produces 64,500 units of product. Determine the machines’ first year depreciation under the units-of-production method.

The relevant factors in computing depreciation do not include:

The present value of an annuity is equal to the sum of the individual future values for each payment.