Answer:
2018
Preferred Stock Dividend Paid = $9,000
Common Stock Dividend = $0
2019
Preferred Stock Dividend Paid = $13,000
Common Stock Dividend = $32,000
Journal Entry
Dec 31
Dividend : Preference Stock $11,000 (debit)
Cash $9,000 (credit)
Shareholders for dividends $2,000 (credit)
Explanation:
Preference Stockholders have preference over Common Stockholders when it comes to payments of dividends.
That means preference dividends are paid first then the remainder belongs to the Common Stockholders.
If Preference Stocks are cumulative, dividends in arrears not paid in previous years are carried over to the next year and these have to be paid up before any distributions for that year are made.
Calculation of Stock Dividend
Stock Dividend gives a fixed dividend to Preference Stockholders every year.
Stock Dividend = ( $220,000 × 5%) = $11,000
2018
Preferred Stock Dividend Paid = $9,000
Preferred Stock Dividend in Arrears = $2,000
Common Stock Dividend = $0
2019
Preferred Stock Dividend Paid = ($2,000 - In-arrears + $11,000 - Current Year) = $13,000
Preferred Stock Dividend in Arrears = $0
Common Stock Dividend = ($45,000 - $13,000) = $32,000
Computing and Recording Proceeds from the Sale of PPE The following information was provided in the 2018 10-K of Hilton Worldwide Holdings, Inc.
2018 2017
Property and equipment, gross $678 $642
Accumulated depreciation (385) (360)
Property and equipment, net 293 282
Note 7 also revealed that depreciation expense on property and equipment totaled $43 million in 2018. The cash flow statement reported that expenditures for property and equipment totaled $58 million in 2018 and that there was no gain or loss on the sale of property and equipment during the year.
Required:
Using the information provided, prepare a journal entry to record the sale of property and equipment in 2018.
Answer:
Cash $4
Accumulated Depreciation $18
To Property & equipment $22
(Being the sale of the property and equipment is recorded)
Explanation:
The journal entry is shown below:
Cash $4
Accumulated Depreciation $18
To Property & equipment $22
(Being the sale of the property and equipment is recorded)
For recording this we debited the cash and accumulated depreciation as it increased the assets and reduced the accumulated depreciation balance and credited the property & equipment as it decreased the assets
The workings are as follows
For PPE
PPE Beginning Balance Beginning $642
Add: Purchases during the year $58
Less: PPE Ending Balance Ending ($678)
Cost of the sold equipment $22
For Accumulated depreciation
Beginning Accumulated Depreciation $360
Add: Depreciation expense 2018 $43
Less: Ending Accumulated Depreciation ($385)
Accumulated Depreciation left $18
Here, we need to first compute the amount of the Property and equipment and the Accumulated depreciation to allow us prepare the journal entry to record the sale of property and equipment in 2018.
For the Property and equipment computation
Particulars Amount
PPE Beginning Balance Beginning $642
Add: Purchases during the year $58
Less: PPE Ending Balance Ending ($678)
Cost of the sold equipment $22
For the Accumulated depreciation computation
Particulars Amount
Beginning Accumulated Depreciation $360
Add: Depreciation expense 2018 $43
Less: Ending Accumulated Depreciation ($385)
Accumulated Depreciation balance $18
Date Account titles and Explanation Debit Credit
Cash $4
Accumulated Depreciation $18
To Property & equipment $22
(Being the sale of the property and equipment is recorded)
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Mr. Jones has a salary of $75,000 and $5,000 in dividends, for a total adjusted gross income of $80,000. He also has two real estate investments that he acquired this year: (a) a limited partnership with losses of $4,000, and (b) a real estate project in which he actively participates and owns 15%, with his share of losses equal to $15,000. How much of his losses can he deduct from the income on a joint return
Answer:
$15,000
Explanation:
Based on the information given we were told that Mr. Jones have gross income of the amount of $80,000 and he had a real estate project in which he owns 15%, which makes Mr. Jones share of losses to be the amount of $15,000. Based on this we can vividly say that Mr. Jones losses will be the amount of $15,000 which is the amount of money Mr. Jones can deduct from the income on a joint return .
On November 1, Jasper Company loaned another company $100,000 at a 6.0% interest rate. The note receivable plus interest will not be collected until March 1 of the following year. The company's annual accounting period ends on December 31. The amount of interest revenue that should be reported in the first year is:
Answer:
The amount of interest revenue that should be reported in the first year is $1,000
Explanation:
As we know Note receivable is a type of investment on which the Noteholder receives te interest over the note amount.
Value of Note = $100,000
Rate = 6%
until 31 December only two months has been passed and the interest revenue of only 2 months will be recognized as follow
Interst Revenue = $100,000 x 6% x 2/12 = $1,000
So the interest revenue of $1,000 should be reported in the first year.
All of the following items should be considered when setting an export price
except
A. The tariff rate and value-added tax.
B. Transportation costs.
C. Prices of substitutes in foreign markets.
D. Repatriation restrictions
Answer:
D. Repatriation restrictions should not affect the prices of commoditiesExplanation:
Repatriation has to do with the conversion of foreign currency to home based currency. this is done in a bid to carry out international transaction effectively
while these items affects the prices of export
A. The tariff rate and value-added tax.
B. Transportation costs.
C. Prices of substitutes in foreign markets.
Danube Corp. purchased a used machine for $21,000. The machine required installation costs of $6000 and insurance while in transit of $1800. At which of the following amounts would the machine be recorded?
A. $28,800
B. $21,000
C. $27,000
D. $22,800
Answer:
$28,800
Explanation:
Danube corporation bought a new machine for $21,000
The machine required $6,000 as installation costs
$1,800 was paid as insurance while in transit
Therefore, the amount at which the machine would be recorded can be calculated as follows
= $21,000+$6,000+$1,800
= $28,800
Hence the machine would be recorded at $28,800
Paul Hyatt owns and operates DeepClean, a Florida-based company that cleans up mold and mildew in homes and businesses. As the sole proprietor of the business, he has unlimited liability, which means:
Answer:
Paul Hyatt is fully liable for all business debts
Explanation:
Unlimited liability in this scenario, means that Paul Hyatt is fully liable for all business debts. That is because unlimited liability is defined as the full legal responsibility that business owners and partners assume for all business debts, and since Paul Hyatt is a sole proprietor which means that he both owns and runs DeepCleans and there is no legal distinction between him and the business entity, then he is fully liable for debts and profits of DeepClean.
When preparing the cash budget, all the following should be considered except: Group of answer choices Cash receipts from customers. Cash payments for merchandise. Depreciation expense. Cash payments for income taxes. Cash payments for capital expenditures.
Answer: Depreciation expenses
Explanation:
When preparing the cash budget, the things to be considered are the cash receipts from customers, cash payments for merchandise, cash payments for income taxes and the cash payments for capital expenditures.
The depreciation expenses is not considered because cash is not involved and it is a contra entry.
By automating its shop floor, your company expects to save $81,000 annually. If the automation costs $225,000, what is the payback period of the automation?
Answer:
2.78
Explanation:
Calculation for the payback period of the automation
Using this formula
Payback period = Automation cost/ Amount to saved annually
Let plug in the formula
Payback period =$225,000/$81,000
Payback period =2.78
Therefore the payback period of the automation will be 2.78
Net sales $296,000 Cost of goods sold 138,000 Average inventory 50,000 What is the average days in inventory (round to the nearest whole day)?
Answer:
132 days
Explanation:
average days in inventory = number of days in a period / inventory turnover
Inventory turnover = costs of good sold / average inventory
Inventory turnover = 138,000 / 50,000 = 2.76
assuming a 365 day period, average days in inventory = 132.25 days = 132 days
Describe what happens to the Aggregate Demand curve in each of the situations below.
a The stock market crashes causing everyone's wealth to decrease.
b. The government decides to invest in new fighter jets for the military.
c. Large tariffs are enforced on imports causing imports to decrease severely while exports stay the same.
d. There is a significant increase in interest rates causing many potential home buyers to leave the housing market
Answer:
Impact on Aggregate Demand Curve
a. The price level will increase and aggregate demand will fall because of the decreased wealth of everyone.
b. The aggregate demand will rise because of the investment by government which increases spending in the economy.
c. The aggregate demand will rise as local production will be substituted for the decreased imports.
d. The aggregate demand will fall since a significant increase in interest rates reduces savings,investment, and demand for goods and services.
Explanation:
The Aggregate Demand curve for Country X is the graphical representation of the relationship between Aggregate Demand and the general price level in Country X. It is a depiction of the effect of consumption spending by individuals and businesses, governmental spending, investments, and spending on exports minus imports. The curve shifts to the right to signal that Country X has increased its total demand for goods and services and to the left to signal a fall in the demand for goods and services.
The graphical representation of the relationship between Aggregate Demand and the price level in Country X is the Aggregate Demand curve for Country X.
It demonstrates the effects of individual and commercial consumption expenditure, government expenditure, investment opportunities, and spending on net exports.
The curve swings to the right to indicate that Country X's overall demand for goods and services has increased, and to the left to indicate that demand has decreased.
The Impact of the following context on the Aggregate Demand Curve is:
a. Because everyone's wealth is falling, the price level will increase and aggregate demand will fall.
b. Government investment will increase spending in the economy, causing aggregate levels to rise.
c. As local output takes the place of lower imports, the aggregate market is growing.
d. A significant increase in interest rates affects savings, investment, and demand for goods and services, resulting in a reduction in aggregate demand.
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4. Sales tax is taken on
O A. selling price minus trade discount.
B. shipping charges.
O c. trade discounts.
0 D. cash discounts.
Answer:
A. selling price minus trade discount.
Explanation:
Happy Frog Inc. is analyzing a project with the following cash flows: Year Cash Flow 0 -$762,000 1 $300,000 2 $-550,000 3 $660,000 4 $440,000 This project has cash flows. Happy Frog Inc.’s WACC is 8.00%. Calculate this project’s modified internal rate of return (MIRR).
Answer:
Happy Frog Inc.
Modified Internal Rate of Return (MIRR) = (Future value of positive cash flows / present value of negative cash flows) (1/n) – 1
= ($1,400,000 /-$1,198,700) (1/5) - 1
= -1.167932 x -0.8
= 0.934
MIRR = 9.34%
Explanation:
a) Future Value of positive cash flows:
1 $300,000
3 $660,000
4 $440,000
Total $1,400,000
b) Present value of negative cash flows:
0 -$762,000
2 -$436,700 ($550,000 x 0.794)
Total -$1,198,700
c) The Modified Internal Rate of Return for Happy Frog Inc. is greater than its Weighted Average Cost of Capital. Therefore, the project looks very promising and should be accepted.
SilverFinn makes high-end jewelry for women. This jewelry is manufactured and patented in Italy. Manufacturers in Argentina create counterfeit SilverFinn jewelry and sell it in local markets at nearly similar prices to the original SilverFinn jewelry sold in other countries. This lack of intellectual property protection is like to result in
Answer: a. reduction in export opportunities from Argentina to other countries.
Explanation:
SilverFinn jewellery probably has intellectual property protection in other countries so when Argentinian producers make those counterfeits, they will be unable to sell it outside Argentina where it would not be allowed to be sold. This will reduce the export opportunities from Argentina to other countries.
It may also reduce the export opportunities of other goods from Argentina because other countries might be slow to trust that what Argentina is sending are indeed genuine goods because they have been known to counterfeit SilverFinn jewelry.
"If a member firm routes a customer market order for an NYSE listed issue to the NYSE's automated trading system, the order will be sent to:"
Answer:
Super display book
Explanation:
Super display book is the NYSE's automated execution system for dealing listed issues. It is a programme installed in a computer, which display information like timing, record, quantity, price and execute orders for securities on the stock exchange market. Super display book ensures that orders are routed directly and correctly to a specialist for quick resolution.
Large and complex orders usually placed on the NYSE are handled by floor brokers hence does not execute most orders placed by individual investors. These order placed by individual investors are directed by super display book to a specialist for quick resolution.
Intense rivalry involving actions and responses among similar competitors vying for the same customers in a marketplace is known as _____________.
Answer:
competitive dynamics
Explanation:
The term that is being described in this question is known as competitive dynamics. Like mentioned, this is the study of the rivalry between various firms that is made up of their competitive actions/responses, their micro/macro level context, and even their antecedents and consequences. Which all-in-all add up to their effort on acquiring the same customers as their client.
MacKenzie Company sold $620 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 5.0% service charge for sales on its credit cards. MacKenzie electronically remits the credit card sales receipts to the credit card company and receives payment immediately. The journal entry to record this sale transaction would be:
Answer:
DR Cash $589
DR Credit Card expense $31
CR Sales $620
(To record sales via credit card)
Working
Cash
= 620 * ( 1 - 5%)
= $589
Credit Card Expense
= 620 * 5%
= $31
The five generic types of competitive strategy are not characterized by a ________ provider strategy. Multiple Choice best-cost broad low-cost focused differentiation focused low-cost focused high-cost
Answer:
focused high-cost.
Explanation:
The five generic types of competitive strategy developed by Porter are:
low-cost provider strategiesbroad differentiation strategiesbest-cost provider strategies,focused low-cost strategiesfocused differentiation strategiesPorter's five generic types of competitive strategy were developed to assist an organization to develop a strategy that makes the company in a competitive position in the market, these strategies are based on three fundamental principles: cost leadership, differentiation and the focus.
According to the author, these bases would lead companies to implement offensive or defensive strategic actions that would lead to gaining advantages in relation to their competitors.
Therefore, The five generic types of competitive strategy are not characterized by a focused high-cost provider strategy
During August, Boxer Company sells $359,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 5% of the selling price. The warranty liability account has a credit balance of $13,100 before adjustment. Customers returned merchandise for warranty repairs during the month that used $9,700 in parts for repairs. The entry to record the customer warranty repairs is:
Answer:
Dr Estimated Warranty Liability $9,700
Cr Parts Inventory $9,700.
Explanation:
Preparation of the entry to record the customer warranty repairs
Based on the information given we were told that Customers had to returned the merchandise for warranty repairs in which the amount of $9,700 was used in parts for repairs this means the journal entry to record the customer warranty repairs will be:
Dr Estimated Warranty Liability $9,700
Cr Parts Inventory $9,700.
Global Commerce Corporation purchased trading debt investments for $136,000 on December 31, 2018. There is a decrease of $3,400 in the fair value of the trading debt investments by the end of the year 2019. Which of the following is the correct journalentry?
A Unrealized Holding
Losslong dash—Trading 3,400
Fair Value
Adjustmentlong dash—Trading 3,400
B. Fair Value
Adjustmentlong dash—Trading 3,400
Unrealized Holding
Losslong dash—Trading 3,400
C. Trading Debt Investments 3,400
Unrealized Holding
Losslong dash—Trading 3,400
D. Unrealized Holding
Losslong dash—Trading 3,400
Retained Earnings
Answer:
A. Unrealized Holding Loss - Trading 3,400
Fair Value Adjustment - Trading 3,400
Explanation:
Since this investment is classified as a trading investment, any change in its fair market value must be included in their income statement. The appropriate journal entry should be:
Dr Unrealized loss on trading security 3,400
Cr Debt investments 3,400
This will decrease the carrying value of the debt investments in the balance sheet and the loss will be included in the 2019 income statement. The fair value adjustment account normally has a credit balance since it decreases the carrying value of the investment account.
Builtrite has two bond issues outstanding(sold two separate groups of bonds over the years). One issue has a 7 year maturity and the other issue had a 12 year maturity.Both bonds are paying 4.25% annual interest. Investors only require a 3.75% return, which of the following statements is true?
a) The 7 year bond issue is riskier than the 12 year bond issue
b) Both bond issues have the same amount of risk
c) The 7 year bond price will be selling closer to par value
d) The 12 year bond price will be selling closer to par value
Answer:
C
Explanation:
Here, we want to select which of the given options in the question is true/correct.
From the question we can observe that the two bonds have required return less than coupon rate. Hence we can conclude that, both are premium bonds. The 7-years bond however. will have closer price to par value.
Bond prices will gradually decrease as we have a decrease in years to maturity. This means that the closer the year to maturity, the lesser the value of the bond price
Suppose today is May 1, 2014, and your firm produces breakfast cereal and needs 90,000 bushels of corn in July 2014 for an upcoming promotion. You would like to lock in your costs today because you are concerned that corn prices might rise between now and July. Each contract is for 5,000 bushels; the settle price for July 2014 is $5.19 per bushel. Suppose corn prices are $5.09 per bushel in July. What will your cumulative mark to market be
Answer:
$467,100
Explanation:
The solution of cumulative mark to market is shown below:-
Total cost for 90,000 bushels = Per bushel × Needed bushels
= $5.19 × 90,000
= $467,100
Therefore for calculating the total cost we simply applied the above formula i.e by multiplying the per bushel with the needed bushels so that the total cost for 90,000 bushels could arrive
A local finance company quotes an interest rate of 19.9 percent on one-year loans. So, if you borrow $48,000, the interest for the year will be $9,552. Because you must repay a total of $57,552 in one year, the finance company requires you to pay $57,552/12, or $4,796.00 per month over the next 12 months.
Required:
a. What rate would legally have to be quoted?
b. What is the effective annual rate?
Answer:
a. What rate would legally have to be quoted?
banks are required to quote the APR, which in this case is 19.9%b. What is the effective annual rate?
22.1%Explanation:
Annual percentage rate (APR) = [($9,552 / $48,000) / 365] x 365 x 100 = 19.9%
In this case, you should only divide $9,552 / $48,000 and then multiply by 100 since the loan only lasts one year.
effective annual rate = (1 + 0.199/365)³⁶⁵ - 1 = 0.2201 = 22.1%
ent "Flounder" Dorfman is a full-time student at Faber College. He is a senior and a member of Delta Tau Chai fraternity. The Deltas awarded Kent a $35,000 scholarship called "The Dean Wormer Double Secret Probation Memorial Scholarship". Kent pays the following amounts, out of his scholarship, to attend Faber College: Tuition - $26,000; Required lab fees - $300; Required books and supplies - $1,000; Room and board - $7,500. Part 1 of 6: Does the $26,000 of the scholarship that was paid for tuition have to be included in Flounder's taxable income for federal income tax purposes?
Answer:
Kent "Flounder" Dorfman
Scholarship from Delta Tau Chair Fraternity
The $26,000 will not be included in Flounder's taxable income for federal income tax purposes. It is a qualified scholarship expense. It is only the portion of $7,500 used for Room and board that is not a qualified scholarship expense.
Though it is required that the $35,000 be disclosed in form 1040. Qualified expenses like tuition, required lab fee, required books and supplies are tax-exempt, while Room and board and other non-required expenses are not qualified and therefore taxable.
Explanation:
S117(b)(2) of the IRS Code states the expenses that are qualified and tax-exempt if they are tuition-related.
When a qualified student, usually above 18 years and enrolled in post-secondary educational institution, receives a scholarship, the amount she uses to pay for tuition and other required expenses, which are generally payable by other students, are regarded as qualified expenses. Since they are qualified, they are also tax-exempt, meaning that taxes will not be paid on them, instead they will be deducted for tax purposes from the student's income. In the case of Kent, the tuition fee is not included in her taxable income for federal income tax purposes.
Companies having the greatest impact on the computation of the Dow Jones Averages and the Standard & Poor's Indexes have the ____________ and the ____________, respectively.
Answer:
This question is incomplete, the options are missing. The options are the following:
a) Highest price; highest total market value
b) Highest total market value; highest price
c) Highest price; lowest liquidity
d) Greatest number of shares outstanding; highest price
And the correct answer is the option B: Highest total market value; highest price.
Explanation:
To begin with, both terms the Dow Jones Averages and the Standard & Poor's are indexes for the respective american stock market in where the better companies of the country are in the list so that why that mostly of them will obviously have the highest total market value and its respectively highest price due to the fact that are the companies that produce more and work better than others and the public buy stocks from them and that makes them richer and richer.
According to the international fisher effect (IFE), the exchange rate percentage change should be approximately equal to the differential in income levels between two countries.
a. True
b. False
A firm's profit function is pi (q) = R(q) = C(q) = 40q - (110 + 20q + 10q^2).
1. What is the positive output level that maximizes the firm's profit (or minimizes its loss)?
2. What is the firm's revenue, variable cost, and profit? Should it operate or shut down in the short run?
3. The output level at which the firm's profit is maximized is q =. (Enter your response as a whole number.)
Answer:
1) [tex]\frac{d\pi (q) }{dq} = 40 - 20 - 20q = 0[/tex]
2) variable cost would be = 20 + 10 = 30, revenue = 40 , -100
3) Q = 1
Explanation:
The firm's profit function is given as
[tex]pi (q) = R(q) = C(q) = 40q - (110 + 20q + 10q^2).[/tex]
1) The positive output level that maximizes the firm's profit
can be expressed as the derivative of the given function
= [tex]\frac{d\pi (q) }{dq} = 40 - 20 - 20q = 0[/tex]
2) The firm's revenue, variable cost and profit
variable cost = 20 + 10q ( from the given function )
when q = 1 variable cost would be = 20 + 10 = 30
TR = 40q = revenue ( from given function)
when q = 1 then revenue = 40
hence variable cost is less than Revenue ( firm should operate in short run)
profit = Revenue - total cost = 40 - 140 = -100
3) The output level at which the firms profit is maximized is
q = 1
Fenwick operates a grocery store and his retail building was completely destroyed by a hurricane on August 22, Year 10. The fair market value of the building before the hurricane was $1,200,000 with an adjusted basis of $800,000. His insurance company reimbursed him $1,200,000 of December 2, Year 10. When is the last date that Fenwick can replace this building with qualifying property and avoid recognizing gain from this transaction.A. December 31, 2013.B. August 22, 2015.C. December 31, 2015.D. December 31, 2016.
Answer:
D. December 31, 2016.
Explanation:
Fenwick company had retail building which was destroyed on August 22, hurricane. The hurricane was so intense that complete building was damaged. The building already had an insurance policy due to which the fair value of the building is reimbursed. Fenwick can claim the fair value of the building from an insurance company. If he replaces the building with qualifying building on the date he gets the insurance claim he will not be required to record gain of the transaction.
Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget: Rumble Thunder Estimated inventory (units), June 1 260 64 Desired inventory (units), June 30 299 56 Expected sales volume (units): Midwest Region 3,650 3,200 South Region 4,900 4,250 Unit sales price $135 $210 a. Prepare a sales budget.
Answer:
Sonic Inc.
a) Sales Budget:
Rumble Thunder
Total units sold 8,550 7,450
Unit sales price $135 $210
Sales value $1,154,250 $1,564,500
b) Production Budget:
Rumble Thunder
Total units sold 8,550 7,450
Desired inventory (units), June 30 299 56
Estimated inventory (units), June 1 260 64
Units to be produced 8,589 7,442
Explanation:
a) Data and Calculations:
Rumble Thunder
Total units sold 8,550 7,450
Desired inventory (units), June 30 299 56
Estimated inventory (units), June 1 260 64
Units Produced 8,589 7,442
Rumble Thunder
Expected sales volume (units):
Midwest Region 3,650 3,200
South Region 4,900 4,250
Total units sold 8,550 7,450
Unit sales price $135 $210
a) The Sonic Inc.'s sales budget determines the production budget. When the quantity to be sold is obtained, then production planning can take place based on meeting customers' demand for goods or services.
b) The Production budget is a bye-product of the sales budget, though, it is critical in the whole value chain. It is the production budget that guides production planning, including the type, design, and other features of the product.
you want to borrow $89000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1850, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 60 month APR loan?
Answer:
9.06%
Explanation:
Given that :
The amount to be borrowed = $89000
Monthly payment PMT = $1850
Period = 60 month
The highest rate that can be afforded on the 60 month APR loan is determined by using the EXCEL Spreadsheet to compute the solution to this question. The spreadsheet screenshot can be seen below for better understanding.
Beatrice invests $1,320 in an account that pays 4 percent simple interest. How much more could she have earned over a 5-year period if the interest had been compounded annually
Answer:
How much more earned is $21.98
Explanation:
Calculation of the amount earned when investment in paying on simple interest
Interest = Amount * Interest rate * No of years
Interest = 1320 * 4% * 5
Interest = $264
Total amount = Interest + Amount invested
Total amount = $1320 + 264
Total amount = $1,584
Therefore, the total amount earned when earning on simple interest of 4% is $1,584
Calculation of the amount earned when investment interest in paying compounded annually
Pv= 1320
n= 5
i= 4%
Fv= ?
Fv= P(1+i)^-n
Fv= 1320(1+0.04)^5
Fv= 1320(1.04)^5
Fv= 1320(1.216652)
Fv= $1605.98
Therefore, the total amount earned when earning on interest compounded annually is $1,605.98
Calculation of how much more earned
Amount earned = Amount earned as per compounded interest - Amount earned as per simple interest
Amount earned = $1,605.98 - $1,584
Amount earned = $21.98
Therefore, how much more earned is $21.98