Bc Accou fo A cocul m bw lo d d l h h v h h l h h h o o u u cfc oy, owd by by h h lo, fo fo cfd od m m u fo fo uld, d d lly odc, ch ch ym ().. Ch 21 Coc m m Rl Rl ym Excuoy Co Co Rco cclbl Ely Ely mo Dful Sld 21-1 Sld 21-2 Adv 100% Fc Fxd R Poco bolcc Flxbly Coly Fc Alv Mmum Tx Poblm ff-blc Sh-Fc Accou by Th u how o o l h c ubc vu fom. Alhouh chclly ll l do o l co, h bf fom h u h oy do. Joul Ey: R x Ch xxx xxx Cl Joul Ey: d qum oblo xxx xxx A l h f ublly ll h bf d k oy owh hould b clzd (oly occllbl l my b clzd). Sm Fcl Accou Sdd. 13, Accou fo, 1980 Sld 21-3 Sld 21-4
Sld 21-5 Mchc Th x codd o o cl l d o l THE SAME ov h lf h. I I cl l h h P& v x d dco x VS o, ll ll o o x. I I cl l, hk l. Th commm o o h lo db d hould b b d lk y oh db (cu v. ocu, ccu c.) Th dcd ju lk f f w owd/uchd. Com cl v. o l FACTS comu woh 3,000 m 3 y Aul ym 1,143 Emd lf comu 4 y Effcv boow 7% PRESENT VAUE F PAYMENTS $3,000 ANNUA DEPRECIATIN $750 CAPITA EASE PENING YEAR NE YEAR TW YEAR THREE YEAR FUR Equm 3,000 C l oblo 3,000 Ch 1,143 1,143 1,143 I x 210 145 75 0 Cl l oblo 933 998 1,068 (0) Dco x 750 750 750 750 Accumuld dco 750 750 750 750 PERATING EASE R x N PENING ENTRY! 1,143 1,143 1,143 Ch 1,143 1,143 1,143 CMPARE EXPENSE F THE TW: CAPITA EASE PERATING EASE I x 429 R x 3,429 Dco x 3,000 3,429 DIFFERENCE BETWEEN THE TW VERA: NNE!!!! Sld 21-6 Clzo C Clzo C Tf wh Am B Puch h D NT m y h fou c ccoud fo Tm Pym Tf wh Am B Puch Th l f owh h oy o h l. Tm Pym Y Y Y Y Cl Y Y Y Y Cl Sld 21-7 Sld 21-8
Clzo C Clzo C Tf wh Am B Puch Tm Pym Tf wh Am B Puch m c b xdd by b wl oo. Tm Pym Y Y Y Y Cl Y Y Y Y Cl Sld 21-9 Sld 21-10 Clzo C Clzo C Tf wh Am B Puch Th mo coc: Mmum l ym Excuoy co Dcou Tm Pym Tf wh Am B Puch Mmum l ym: Gud dul vlu Ply fo flu o w B uch oo Tm Pym Y Y Y Y Cl Y Y Y Y Cl Sld 21-11 Sld 21-12
Clzo C Clzo C Tf wh Am B Puch Excuoy Co: Iuc Mc Tx Tm Pym Tf wh Am B Puch Dcou R: comu h h mmum l ym u h l cml boow. (o xco) Tm Pym Y Y Y Y Cl Y Y Y Y Cl Sld 21-13 Sld 21-14 REA WRD Th l com h o o h c d o o ou wh l h hy blv f h qum. Thy uully u lly h (. PV PV ym 89.9% h f vlu h ). Ju bcu h l comy y wok o l, do mk o!! TEXT xml fom.1097 o d l m dd Juy 1, 2005 whch qu o o l qum o l b Juy 1, 2005. Tm : 5 y, occlbl l m, qul ul ym b y $25,981.62 F vlu qum $100,000 co d h 5 y. f d o dul vlu y ll xcuoy co dcly, xc oy x whch $2,000 y d h ul ym $25,981.62 wl oo d qum v o o mo boow 11%, o mlc 10% d kow o o dc o h l b. Sld 21-15 Iuco Sld 21-16 P h joul o h book h h l o h l m houh Dcmb 31, 2009.
. 1097 SUTIN Pym 25,981.62 PENING ENTRY: Poy x (2,000.00) Equm 100,000 oo 23,981.62 Cl l oblo 100,000 R 10% 1/1/05 ENTRY: * Pod 5 lbly 23,982 PV 100,000 Poy x x 2,000 f 5 Ch 25,982 - * mll ENTRY: l boow o lo mlc 12/31/05 I x 7,602 IS THIS A CAPITA EASE? YES- 100% F IFE IS>75% AND Pv Pym>90% Dco x 20,000 ccum d 20,000 EASE AMRTIZATIN SCHEDUE Accud 7,602 - EASE EASE REDUX IABIITY EASE PMT INTEREST 1/1/06 PAYMNT: 100,000.00 Poy x x 1/1/05- PENING 2,000 1/1/05 PAYMENT 23,981.62-23,981.62 76,018.38 lbly 16,380 1/1/06 PAYMENT 23,981.62 7,601.84 16,379.78 59,638.60 I ybl 7,602 1/1/07 PAYMENT 23,981.62 5,963.86 18,017.76 41,620.84 Ch 25,982 1/1/08 PAYMENT 23,981.62 4,162.08 19,819.54 21,801.30-1/1/09 PAYMENT 23,981.62 2,180.13 21,801.49 - ETC. RESIDUA VAUE- ESSEE Accou dd o o whh h dul ud o o o: Gud: A A f f dd o x Gud: A A f f h ud mou fl ym (/ lo ul o o fl ym dd o o wh h vlu h oy ) ) Sld 21-17 Sld 21-18 BARGAIN PURCHASE PTIN DISCUNT THE BARGAIN! (f (f 10 10 fo 2, 2, h wh h PV h co h $8 b?? Th co= PV h $2 ym)) If If h b uch oo, h you um wll b b d d h fd h d h m. Thk fl l ym. Fo c- 3 y l $100 y, 10% mlc. C buy h m fo $75 h d h m wh f vlu would b b $150. Th h PV h ym : : PV l ym $250 PUS PV $75 h fuu $ 56 56 PV h l $306 Sld 21-19 Sld 21-20 Illuo E21-2 P Dly Comy l uomobl wh f vlu $8,725 fom Joh Smo Moo, Ic., o h follow m: 1. cclbl m 50 moh 2. Rl $200 moh ( d ch moh; vlu 1% moh $7,840). 3. Emd dul vlu f 50 moh $1,180 (h vlu 1% moh $715). Dly Comy u h dul vlu $1,180. 4. Emd coomc lf h uomobl 60 moh. 5. Dly Comy cml boow 12% y (1% moh). Smo mlc ukow. Iuco P h joul o h book Dly Comy fo h f moh h l.
Soluo E21-2 FACTS Tm l 50 moh Mohly 200 R 12% Gud. Vlu 1,180 f 60 moh Th cl l bcu wo h c m (oly d o m) m 50 f 60 83% > 75% qum Bf Avlbl To Th o I Rvu Tx Icv Hh Rdul Vlu ym (c dul ud, cludd) ym $7,839.22 dul $717 $8,556.71 ENTRY T RECRD: d qu ud c l $ 8,556.71 lbly $ 8,556.71 Sld 21-21 1 Moh Ey: Dco x $ 147.53 Accum. D $ 147.53 lbly $ 114.43 I x $ 85.57 Ch $ 200.00 Sld 21-22 Clzo C ((o) Gou I Tf owh B B uch oo oo m m => => 75% 75% coomc lf lf ld ld oy P vlu vlu mmum l l ym => => 90% 90% FMV FMV oy Gou II II Collcbly h h ym qud fom fom h h l l obly dcbl. mo uc uoud h h mou mou umbubl co co y y o o b b cud by by h h lo loud h h l l (lo fomc ublly coml o o fuu fuu co co obly dcbl). Why Gou II Rqum? ESSR: DIRECT FINANCING VS. VS. SAES TYPE EASES IF IF A A THE THE CRITERIA ARE ARE MET, THEN IT IT IS IS EITHER A DIRECT FINANCING R R SAES-TYPE EASE T T THE THE ESSR: Dc Fc: o o o mk moy fom ll h h oduc, hy hy fo fo h h fc c (mo lk lk ld). I I wok ju ju lk lk h h cl l w w ju ju ok fo fo l, bu bu v ( com, l cvbl VS VS x, cvbl )) Sl-Ty: o fc f, f, bu bu AS mk moy fom h h oduc lf wll wll (hy my my b b mufcu o o l). Mo comlcd- d o o dl dl wh wh y y h h lo mk fom ll h h. Sld 21-23 Sld 21-24
Sld 21-25 Clzo C ((o) Ay Gou 1 C M? Am Y Collcbly Pym Robly C? Y Boh Gou 1 c h fou c h mu b codd fo clzo l by l. o Pfomc Sublly Coml? Y I A FMV > Bookvlu? Y Dc Fc Sl-Ty Sld 21-26 Pym 100 ESSR- DIRECT FINANCING od 3 8% PV 258 FV 258 Co 258 UPN "SAE" C l cvbl 258 A 258 YR 1 Ch 100 I com 21 C l cvbl 79 YR 2 Ch 100 I com 14 C l cvbl 86 YR 3 Ch 100 I com 7 I com 93 Pym 100 ESSR: SAES TYPE od 3 8% PV 258 FV 258 Co 200 UPN "SAE" C l cvbl 258 A 200 G 58 YR 1 Ch 100 I com 21 C l cvbl 79 Clzo C ((o) I I obl h h lo hv o o m m boh boh c wll wll clfy l o l bu bu h h l wll wll clfy h h m l cl l? I I uch uch v, who who wll wll hv hv h h o o h book? Sld 21-27 YR 2 Ch 100 I com 14 C l cvbl 86 YR 3 Ch 100 I com 7 I com 93 Sld 21-28
Sl d 22-13 Tf B Puch comu h h mmum l ym u h l cml boow. (o xco) Tm Pym >= 9 0% Coyh 2000 by Coby Hmo Clzo C wh Y Am Cl Dcou R: Y Y Y Sld 21-29