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larisa [96]
3 years ago
7

If the net present value of the payments at the time of the leases was 88% of the actual market price and the useful life of the

lease was 70% and the title did not transfer at the end of the lease term, the lease will still qualify as an operating lease
A. True
B. False
Business
1 answer:
Aliun [14]3 years ago
4 0

Answer:

A. True

Explanation:

Examples of situations that individually or in combination would normally lead to a lease being  classified as a finance lease are:

(a) the lease transfers ownership of the underlying asset to the lessee by the end of the lease  term;

(b) the lessee has the option to purchase the underlying asset at a price that is expected to be  sufficiently lower than the fair value at the date the option becomes exercisable for it to be  reasonably certain, at the inception date, that the option will be exercised;

(c) the lease term is for the major part of the economic life of the underlying asset even if title is  not transferred;

(d) at the inception date, the present value of the lease payments amounts to at least substantially  all of the fair value of the underlying asset; and

(e) the underlying asset is of such a specialised nature that only the lessee can use it without major  modifications.

Since at the time of lease the net present value of the payments is 88% of the actual market price and the useful life of the asset was 70% at the end of the lease term and also the title of asset shall not be transferred to lessee at the end of lease term, therefore the lease shall not be classify as finance lease and it shall be classified as operating lease so the answer is A. True

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It must be debatable. Hope this helps
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3 years ago
In year T, a US citizen buys 100 shares of Sonic on the Tokyo stock exchange at 700 yens each. Suppose the exchange rate then is
zlopas [31]

Answer:

Change in US external wealth between periods T and T +1 in dollars = -$100

Explanation:

Since nothing else changes, this implies that the exchange rate per yen is $0.01 in periods T and T +1. Therefore, we have:

Value shares of Sonic in period T in dollar = Number of shares of Sonic bought in period T * Price per share of Sonic in Yen in period T * Exchange rate per yen in periods T = 100 * 700 * $0.01 = $700

Value shares of Sonic in period T+1 in dollar = Number of shares of Sonic in period T+1 * Price per share of Sonic in Yen in period T+1 * Exchange rate per yen in period T+1 = 100 * 600 * $0.01 = $600

Change in US external wealth between periods T and T +1 in dollars = Value shares of Sonic in period T+1 in dollar - Value shares of Sonic in period T in dollar = $600 - $700 = -$100

4 0
3 years ago
Which of the following is used to explain the process managers go through in determining the reasons for effective or ineffectiv
inessss [21]

Answer: Attribution theory.

Explanation:

Managers most times makes use of the Attribution theory when trying interpret employees behavior. The Attribution theory is a theory that studies individual and their behavior, what makes an individual either motivated or demoralized on a job.

8 0
2 years ago
Read 2 more answers
why do the regular meetings between a portfolio manager and his or her team of analysts take place in what is sometimes called "
Delicious77 [7]

Important meetings between a portfolio manager and his or her team of analysts take place in what is sometimes called "the war room" because that is where business strategies are discussed and formulated.

<h3>What is Business Strategy?</h3>

This refers to the set plans and actions that a business takes in order to get ahead of its competition and maximize profit.

With this in mind, the strategy room is called a war room because business is effectively war, especially in a capitalist system and the portfolio manager meets with his team of analysts in order to discuss business strategies.

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5 0
2 years ago
Bramble Corp. has $3960000 of 9% convertible bonds outstanding. Each $1,000 bond is convertible into 30 shares of $30 par value
natta225 [31]

Answer: Credit of $217480 to Paid-in Capital in Excess of Par

Explanation:

The following information is given in the question as:

Debit: Bonds payable = $1,250,000

Debit: Premium on bonds payable = $92480

Credit: Common stock = $1,125,000

Credit: Paid in capital in excess of Par = $217480

The above were calculated as:

Common stock = ($1250,000/$1,000) × 30 × 30

= $1250 × 90

= $1,125,000

% Conversion will be:

= $1,250,000 / $3960000 = 0.32

Unamortized bond premium will then be:

= 0.32 × $289,000

= $92,480

Paid in capital in excess of par will be:

= $1,250,000 + $92,480- $1,125,000

= $217,480

Therefore, the answer will be to

"Credit of $217480 to Paid-in Capital in Excess of Par"

4 0
2 years ago
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