You expect to receive $5,500 in 9 years from a lawsuit settlement. What is the present value of the settlement? Use an annual interest rate of 7.25%.

The accountant at bramble corp. has determined that income before income taxes amounted to $10800 using the fifo costing assumption. if the income tax rate is 30% and the amount of income taxes paid would be $900 greater if the lifo assumption were used, what would be the amount of income before taxes under the lifo assumption?