A wealthy industrialist wishes to establish a $2,000,000 trust fund which will provide income for his grandchild into perpetuity. He stipulates in the trust agreement that the principal may not be distributed
The grandchild may only receive the interest earned. If the interest rate earned on the trust is expected to be at least 7 percent in all future periods, how much income will the grandchild receive each year?
$2,000,000 × 0.07 = $140,000
Business
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Rich corporation purchased a limited life intangible asset for $270,000 on may 1, 2010. it has a useful life of 10 years. what total amount of amortization expense should have been recorded on the intangible asset by december 31, 2012?
a. 0 b. 54000 c. 72000 d. 81000
Business