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Scilla [17]
3 years ago
8

Warren Co. recorded a right-of-use asset of $780,000 in a 10-year finance lease. The interest rate charged by the lessor was 10%

. The balance in the right-of-use asset after 2 years will be:
Business
1 answer:
VLD [36.1K]3 years ago
3 0

Answer: $624000

Explanation:

From the question, we are informed that Warren Co. recorded a right-of-use asset of $780,000 in a 10-year finance lease and that the interest rate charged by the lessor was 10%.

The balance in the right-of-use asset after 2 years will be calculated as:

= $780,000 - [($780,000/10) × 2]

= $780,000 - ($78000 × 2)

= $780,000 - $156,000

= $624000

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Answer:

a. explicit cost

b. explicit cost

c. implicit cost

d. implicit cost

Explanation:

Explicit costs can be defined as the actual costs incurred to run the business like supplies, utilities, materials or wages, while implicit costs can be defined as the opportunity cost of running the business like the potential salary of working in another job or the possible revenue of renting the current operating location.

a. The wages and utility bills that Sam' pays - explicit cost (actual costs)

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3 years ago
Why do courts permit fraud to disrupt genuine agreement in a contractual setting?
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3 years ago
The common stock of the P.U.T.T. Corporation has been trading in a narrow price range for the past month, and you are convinced
mariarad [96]

Answer:

A) according to put call parity:

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B) you have to purchase both a put and call option ⇒ straddle

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3 0
4 years ago
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Mars2501 [29]

Answer:

Supply, shift in , rise fall

the demand, shift in, fall ,fall

supply , shift out fall, rise

the demand , shift out rise rise

the demand shift in fall fall

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4 years ago
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stiks02 [169]

Answer:

D. prospectus

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