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ahrayia [7]
2 years ago
14

On January 1, Ramirez Supply leased a car for a four-year period, at which time possession of the car will revert back to the le

ssor. Annual lease payments are $14,100 due on December 31 of each year, calculated by the lessor using a 10% discount rate. Negotiations led to Ramirez guaranteeing the lessor a $42,300 residual value at the end of the lease term although Ramirez estimates that the residual value after four years will be $40,200. What is the amount to be added to the right-of-use asset and lease payable under the residual value guarantee
Business
1 answer:
ohaa [14]2 years ago
5 0

Based on the amount that Ramirez guaranteed the lessor and the estimated residual value, the amount to be added to the right-of-use asset is $1,434.33.

<h3>What amount should be added to the right-of-use asset?</h3>

This would be the present value of the difference between the guaranteed amount and the estimated residual value.

= 42,300 - 40,200

= $2,100

Present value:

= 2,100 / (1 + 10%)⁴

= 1,434.328

= $1,434.33

In conclusion, the right-of-use asset amount to be added is $1,434.33.

Find out more on present value at brainly.com/question/20813161.

#SPJ1

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The extent to which a firm's internal activities encompass one, some, many, or all of the activities that make up an industry's
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The answer is:  [A]:  "vertical scope" .
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8 0
3 years ago
The marginal cost curve crosses the average total cost curve at a. The efficient scale. b. The minimum point on the average tota
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Answer:

b. The minimum point on the average total cost curve

Explanation:

the marginal cost is the cost of making or producing one more additional unit of a product and then average total cost is the average of the total cost to produce units so if both these curves intersect then that means that will be the minimum point on the average total cost curve because at a point where if the marginal cost is less than the average cost then the average total cost will fall so the intersection point shows where the average total cost is a minimum because if its above that point the average total cost will rise.

6 0
3 years ago
Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for Januar
Zigmanuir [339]

Answer:

Total Contribution Margin= $50,388

Explanation:

Giving the following information:

Sales (3,400 units) $ 88,400

Variable expenses 43,316

We need to calculate the selling price and unitary variable cost:

Selling price= 88,400/3,400= $26

Unitary variable cost= 43,316/3,400= $12.74

Now, we can calculate the total contribution margin for 3,800 units.

Sales= 26*3,800= 98,800

Variable cost= 12.74*3,800= (48,412)

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3 0
2 years ago
What tends to happen to the accuracy of our savings goals as our investment horizon becomes longer?
SIZIF [17.4K]

We are less able to accurately estimate the amount we will need tends to happen to the accuracy of our savings goals as our investment horizon becomes longer.

Secured Goals is part of an account that is structured to save only your money and save that as well, all the difference is this is a great dividend saving account to protect against accidental spending. When you open a protected savings fund, a savings goal is automatically created or credit installments are created only at the end of each month.

Setting goals helps investment horizon you break down the saving process to make it easier and more convenient. Setting goals saves time.

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6 0
1 year ago
​Wellness, a healthy living​ magazine, collected in subscription revenue on May 31. Each subscriber will receive an issue of the
PIT_PIT [208]

Answer: $220,000

Explanation:

Using the Accrual Method of Accounting means that revenue is only to be recorded when it is earned i.e. when services have been delivered.

Any revenue received when the services have not been delivered will be recorded as Unearned Revenue.

With $528,000 in subscription revenue, the monthly subscription is;

= 528,000/12

= $44,000

From June to December would be 7 months so they would have earned;

= 44,000 * 7

= $308,000

The amount that they have not earned but have received would therefore be;

= 528,000 - 308,000

= $220,000

<em>This amount will be recorded after they finish deliveries of magazines in next year May. </em>

7 0
3 years ago
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