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natima [27]
2 years ago
15

At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under a eight-year operating lease agr

eement. The contract calls for quarterly rent payments of $29,000 each. The office building was acquired by Lakeside at a cost of $2.4 million and was expected to have a useful life of 30 years with no residual value.
Required:
a. What will be the effect of the lease on Lakeside’s earnings for the first year (ignore taxes)? (Enter your answer in whole dollars.)
Business
1 answer:
telo118 [61]2 years ago
5 0

Answer:

The effect of the lease on Lakeside's earnings in the first year of lease is an increase in net earnings of $36000

Explanation:

The effect of the lease on Lakeside's earnings is in terms of costs/benefits.

Costs incurred yearly as a result of acquiring the office space by a way of depreciation charge while benefits relate to the yearly lease rentals.

Yearly lease rentals ($29000*4)       =$116000

Yearly depreciation($2400000/30)  =<u>($80000)</u>

Increase in earnings                               <u> $36000</u>

The fact that net earnings would increase shows that the acquiring the office space and subsequently leasing it out to a lesse were not worthwhile.

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8 0
3 years ago
Amounts withheld from employee's earnings for employee income tax is considered a _____ by the employer until the government is
Komok [63]

Amounts withheld from employee's earnings for the employee income tax is considered a liability by the employer until the government is paid

What is liability?

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In this case, the employees owe the government income taxes, whereby the employees have discharged the obligation by having the employers deduct them from their earnings.

The onus is now on the employers to make payments in respect of the income taxes withheld to the tax authority, prior to which the taxes are treated as the employer's liability.

Find out more about liability on:brainly.com/question/17090843

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Missing options:

(A) assets. (B) liabilities. (C) salary expense. (D) revenue.

7 0
1 year ago
Harriet died before she had a chance to prepare a will. What will MOST likely happen to her estate?
timofeeve [1]

Answer:

the answer is d!

Explanation:

I hope this helps

8 0
3 years ago
Ai​ Lun, a management trainee at a large New Yorkdashbased ​bank, is trying to estimate the real rate of return expected by inve
QveST [7]

Answer:

Ai​ Lun estimate that  real rate would be 1%

Explanation:

The Formula for the Real Rate of Return is

Real rate of return =Nominal interest rate - Inflation rate

In this case ,

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Inflation rate  is given by the rising of the consumer prices =2%

So,  

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5 0
3 years ago
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3 years ago
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