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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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Activity-based costing (ABC) systems ________. A. Unselected have the same cost allocation system as plantwide and departmental
atroni [7]

Answer:

D. have separate cost allocation rates for each activity identified by the company CORRECT

There will be activity cost pool which, will be distribute among the product using different cost driver like machien hours, direct labor hours or other.

Explanation:

A. have the same cost allocation system as plantwide and departmental cost allocation systems

NO If it was, then it would not have a different name

B. have no cost allocation rates for each activity identified by the company

If we don't have rates to distrubte cost then, the allocation will be arbitrary

C. have combined cost allocation rates for each activity identified by the company

each should have different base cost driver if not, then they aren't different and should be combined.

4 0
3 years ago
Why is NDP never greater than GDP.
hammer [34]
Because NDP stands for National Domestic Product which means everything that is produced in the country e.g. the US, and abroad from companies that are American.
Whereas, GDP is just from goods and services made in the country and in its borders.
6 0
2 years ago
Frank is interested in rewriting the vision statement for his antique shops, and he wants his employees and his business to grow
vivado [14]

<u>Answer:</u> Option A True

<u>Explanation:</u>

As an entrepreneur Frank has made the right decision of rewriting the vision statement for his antique shop.  A business can succeed only when it has a strong vision statement. When there is a proper vision statement the entire business works for that purpose.

The vision statement made should be linked with the goals of employees. This will create a positive and inspiring place for the employees to work. Even the small antique shop can expand its business activities and attain growth through proper vision statement.

8 0
3 years ago
Novak Corp. is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first year
GenaCL600 [577]

Answer:

Feb 1=> Cash ( debit) = 2,444,000.

Prefered stock (credit) = 2,350,000.

Paid in capital in excess of par value-preferred stock(credit) = 94000.

July 1=> Cash (debit) = 3,500,000.

Prefered stock (credit) = 3,125,000.

Paid in capital in excess of par value-preferred stock(credit) = 375000.

Explanation:

(A). On FEB. 1, the accounts and Explanation is given below:

Cash ( debit) = 2,444,000 {that is from; 47,000 × $52}.

Prefered stock (credit) = 2,350,000 { that is from; 47,000 × $50}.

Paid in capital in excess of par value-preferred stock(credit) = 2,444,000 - 2,350,000 = 94,000.

(B). On JULY 1, the accounts and Explanation is given below;

"July 1 Issued 62,500 shares for cash at $56 per share."

=> Cash (debit) = 62500 × 56 = 3,500,000.

Prefered stock (credit) = 3,125,000 { that is from; 62,500 × $50}.

Paid in capital in excess of par value-preferred stock(credit) = 3,500,000 - 3,125,000 = 375,000.

7 0
3 years ago
Read 2 more answers
How can a person become a dentist​
Shtirlitz [24]

Explanation:

It generally takes eight years to become a dentist: four years to earn a bachelor's degree as an undergraduate and four years to earn a DDS or DMD in dental school. If you're interested in specializing, you'll also need to complete a dental residency (more on that below).

brainliest please

8 0
2 years ago
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