Which of the following statements best describes the behavior over time of the components of equal mortgage payments?
a. The proportion of interest expense to payment of principal remains the same.
b. Payment of principal increases and interest expense decreases.
c. Both payment of principal and interest expense decrease.
d. Interest expense increases and payment of principal decreases.
B
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The Takings Clause is triggered by the power of adverse possession.
Answer the following statement true (T) or false (F)
_____________ are liabilities that arise from a contract that requires a company to make payments to its employees after they retire
A) Deferred income taxes. B) Other post-retirement benefits. C) Capital leases. D) Pensions.
The reason for combining direct labor and overhead costs together and calling them "conversion costs" is that
A) they both are direct costs of production. B) the equivalent unit amount for direct materials will be the same as that for direct labor and overhead costs. C) both these types of costs usually are incurred uniformly throughout the production process. D) the costs for direct labor and overhead are not accounted for separately.
Louwers Corporation recently sold a used machine for $50,000 . The machine had a book value of $75,000 at the time of the sale. What is the after-tax cash flow from the sale, assuming the company's marginal tax rate is 25 percent?
a. $43,750 b. $50,000 c. $56,250 d. $75,000