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3 years ago

Someone may choose to own a car instead of leasing because

2 answers:

8 0

Someone can choose to own a car instead of leasing it because the car can be resold later to make some money back.

Further Explanation:

Owning a car: When a person buys the car it becomes the asset of that person. The person becomes the owner of the car after the payment of the value of the car. After the purchase of the car, the owner does not have to follow any condition as the car is owned by him. The owner can use it in any manner and sale it anytime he wants. The re-sale amount of the car is lower than the purchase amount of the car.

Leasing a car: The lease is an agreement between two parties for the use of an asset for a definite period in the exchange of some monetary compensation. When a car is leased the person does not get the ownership of the car. They have to pay the periodic (monthly, quarterly or yearly) installment as rent for the use of the car. The user of the car has to return the car at the end of the lease. The lessor may put some conditions regarding the use of the car. It restricts the free use of the car.

Choosing purchase (own) of a car instead of leasing:

The person can choose to purchase (own) the car because the owner of the car can resale it anytime and realize some value of the car.

The owner of a car has all the rights related to the car. In the case of leasing, the lessee does not have rights related to the re-sales of the asset. The lessee has to return the car when the lease agreement ends. The lessee would not get any monetary compensation in case of returning the car, but when the owner of the car sells it, he would realize some money.

Thus, someone can choose to own a car instead of leasing it because the car can be resold later to make some money back.

Learn more:

1. Learn more about choosing the purchase of car or leasing

brainly.com/question/2731676

2. Learn more about choosing the purchase of the car

brainly.com/question/1258129

3. Learn more about renting and owning

brainly.com/question/2288011

Answer details:

Grade: Senior School

Subject: Accounting

Chapter: Leasing

Keywords: Leasing, purchase, lease agreement, ownership of the asset, asset, someone, may choose, own a car, instead of, leasing, resold, some money back, later, higher price, maintenance costs, leased car are generally higher, insurance costs, higher.

jonny [76]3 years ago

6 0

Someone may choose to own a car instead of leasing because they may end up needing to drive it farther and longer than the set milage or wanting to own the vehicle outright instead of making lease or rental payments. If you damage the vehicle, it also becomes more expensive because you do not own it entirely. Reporting damage or mile overage to the leasing company results in fees and penalities.

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Answer:

c. John's capital account for $41,400

Explanation:

Based on this information it can be said that in this scenario the journal entry to record the admission of John as a new partner would include a credit to John's capital account for $41,400. This is mainly because even though Bobbi sold his interest for $63,900 his actual interest capital in the partnership was that of $41,400 .... meaning that John now holds a partnership capital of $41,400 and the Bobbi profited $22,500

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3 years ago

The optimal level of difficulty of a goal Question 18 options: occurs only when employees set their own goals. occurs when the g

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Answer:

occurs when the goal is challenging but not impossible.

Explanation:

A goal can be defined as the desire to meet specific targets over a period of time.

Generally, there are different types of goals and these includes;

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2. Intrapersonal goal: a goal that is personal and fixed. This type of goal is peculiar to an individual and might include an action plan or desire to stop a behavior, start a task, improve on an aspect of your life, etc.

3. Normative goal: it's dependent on the achievement of others. It is typically based on an evaluative standard.

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3 years ago

On October 1, 20X6, Susan Thompson opened Thompson Decorating Services, a sole proprietorship. Susan began operations with $50,0

galben [10]

Answer: income statement: Net income $5,100, Statement of owners Equity :Total $35,100, Balance sheet : Total Liabilities $53,200, Total Asset $53,200

Explanation:

Thompson Decoration Services

Income Statement for the month ended 31 st October 20X6

Revenue. 18,300

Less Expenses

Salaries. 8,700

Advertising 2,500

Less: outstanding 700

-------

1,800

Taxes. 150

Postage. 1,800

Utilities. 100

Interest. 450

Miscellaneous. 200

------------

13,200

--------------

Net income. 5,100

-----------------

Statement of owners Equity for the month ended 31st October 20X6

Common Stock. Paid in capital. Retained Earnings Treasury stock Total

Balance Oct 1. 30,000. 30,000

Issued share for cash. - - - - -

Purchase of treasury stock - - - - -

Net income. - - 5,100. 5,100

Cash dividend. - - - - -

Stock dividend. - - - - -

------ ------ --------- ---------- -------------

Balance on Oct 31. - - 5,100 - 35,100

---------- -------- -------- ---------- --------------

Thompson Decoration Service

Balance sheet for the month ended 31st October 20X6

Current Asset

Debtors. 4,100

Account Receivable 14,200

-----------

Total Current Asset. 18,300

Fixed Asset

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Office Equipment. 4,000

Furnishing. 14,900

-----------

Total Fixed Asset. 34,900

--------------

Total Asset. 53,200

---------------

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Add: Net income 5,100

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Less: Drawing. 5,500

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-----------

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Taxes. 150

Miscellaneous 200

--------------

Total Current Liabilities 3,600

--------------

Total Liabilities. 53,200

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4 years ago

Read 2 more answers

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Answer:

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Explanation:

Step 1:

If a company sells a product at $60 each and makes a sale of $15,000, the number of units of items produced is

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Step 2:

To calculate the company's contribution margin per unit,

we have, (unit selling prices - unit production cost)

unit selling price is #60

unit cost of production is (total cost of prodcution ÷ number of units)

total cost of production is $4,000+ $1,000+ $2,000+ $1,000 = $8000

Unit cost of production is $8000 ÷ 250 = $32

i.e it takes $32 to manufacture 1 product.

Contribution margin = $60 - $32

= $28

∴ the contribution margin is $28.

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3 years ago

Gilchrist Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginni

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Answer:

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Explanation:

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To calculate the predetermined overhead rate, we need to use the following formula:

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4 0

3 years ago