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1 year ago

The journal entry for recording payment for the short-term lease of a fixed asset would?

1 answer:

3 0

The finance lease is the journal entry can be created by debiting the lease asset account and crediting the lease liability account. The amount of lease asset or lease liability recorded in this journal entry is the fair value of total lease payments.

Because short-term leases are not capitalized, no depreciation expense on the right of use asset or finance cost on the lease liability is recognized. Payments on short-term leases are expensed by the less on a straight-line or other systematic basis.

Debit the appropriate fixed asset account and credit the capital lease liability and account with the amount.

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You expect KT industries (KTI) will have earnings per share of $4 this year and expect that they will pay out $1.75 of these ear

melisa1 [442]

The value of a share of KTI's stock today is closest to 9.5% , 0.004375 .

Explanation:

Investment Investment (ROI) is an investment performance metric used to evaluate or compare the success of a variety of investment operations.

In addition to the spending price, ROI aims to explicitly calculate the make value of a single project.

g = retention rate

ROI = 0.75*13% = 9.5%,

Price = 1.75/(0.10-0.0975) = 0.004375

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2 years ago

1. Question 1 Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent t

Blizzard [7]

Answer:

B. What must be given up to acquire it

Explanation:

The opportunity cost is the cost which is to be sacrificed to gain for some better option

Since in the given case the aunt is thinking to open a hardware store but it will cost her $500,000 for rent and the to purchase the stock

And, also she also have to quit her accountant job for $50,000

So in this option quitting the job is to be considered as an opportunity cost

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2 years ago

Acton Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its m

algol [13]

Answer:

option (b) $69,768

Explanation:

Data provided in question:

Estimated manufacturing overhead = $73,440

Estimated machine-hours = 1,800

Actual manufacturing overhead = $68,700

Actual machine-hours = 1,710

now,

The predetermined overhead rate = $\frac{\textup{Estimated manufacturing overhead}}{\textup{Estimated machine-hours}}$

The predetermined overhead rate = $\frac{\textup{73,440}}{\textup{1,800}}$

The predetermined overhead rate = $40.8 per hour

Therefore,

The applied manufacturing overhead for the year

= Actual machine-hours × predetermined overhead rate

= 1,710 × $40.8

= $69,768

Hence,

the correct answer is option (b) $69,768

5 0

3 years ago

You are looking to buy a car and you have been offered a loan with an APR of 5.7 %, compounded monthly. a. What is the true mon

lukranit [14]

Answer:

Monthly Interest rate = 0.475%

EAR = 5.85%

Explanation:

APR = 5.7%

Monthly Interest rate = APR / n

Monthly Interest rate = 5.7% / 12

Monthly Interest rate = 0.475%

APR = 5.7%

m = 12

EAR = [ ( 1 + (APR / m))^m] - 1

EAR = [( 1 + (0.057 / 12))^12] - 1

EAR = [( 1 + 0.00475 )^12] - 1

EAR = [( 1.00475 )^12] - 1

EAR = 1.0585 - 1

EAR = 0.0585

EAR = 5.85%

True monthly rate of interest is 0.475%

EAR is 5.85%

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2 years ago

A one-year call option contract on Cheesy Poofs Co. stock sells for $1,330. In one year, the stock will be worth $65 or $86 per

givi [52]

Answer:

$98.02

Explanation:

Data provided in the question:

Value of contract = $1,330

Maximum value = $86

Minimum value = $65

Exercise price = $78

Risk-free rate = 3%

Now,

Current value of stock = $(\frac{\text{Maximum value-Minimum value}}{\text{Maximum value-Exercise price}}\times\text{Call price})+(\frac{\text{Maximum value }}{\text{1+Risk-free rate}})$

also,

a standard contract has 100 shares

thus,

Call price = Value of contract ÷ 100 shares

Call price = $1,330 ÷ 100 = $13.30

Thus,

Current value of stock = $(\frac{\text{86-65}}{\text{86-78}}\times\text{13.30})+(\frac{\text{86}}{\text{1+0.03}})$

Current value of stock = ( 2.625 × $13.30 ) + $63.1068

= $98.0193 ≈ $98.02

6 0

2 years ago