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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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Answer:

Option A, 20% more, is the right answer.

Explanation:

Given the beta value of stock A =  1.2

The beta value of stock B = 1

The beta value of stock A is greater than the stock B. Here, we can see that the beta of stock A  is large by 20% as compared to the beta of stock B.

It can be calculated as = (Beta of stock A – Beta of stock B) / Beta of stock B

= (1.2 – 1) / 1

= 0.2 or  20%

Therefore, the return will also be more than 20%.

Thus, option A. 20% more is correct.

3 0
3 years ago
Stark Corporation has two​ departments, Car Rental and Truck Rental. Central costs may be allocated to the two departments in va
cestrela7 [59]

Answer:

310.5 activity rate per employee

Explanation:

Number of employees:

135 Car Rental

65 TruckRental

200 total

\frac{Activity\: Cost}{Pool}= Activity\:Rate

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62,100/200 = 310.5 activity rate

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3 years ago
On September 1, 2021, Red Co., issued $48 million of its 10% bonds at face value. The bonds are dated June 1, 2021, and mature o
Harlamova29_29 [7]

Answer:

$1,200,000

Explanation:

The computation of the accrued interest is shown below:

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= $48,000,000 × 10% × (3 months ÷ 12 months)

= $1,200,000

We simply applied the simple interest formula by considering the principal amount, rate of interest and the number of months so that the correct amount could come

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3 years ago
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Craig and Kris were walking directly toward each other in a congested store aisle. Craig moved to his left to avoid Kris, and at
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Answer:

does not achieve a mutually beneficial equilibrium because there is a lack of coordination of the actions of people and businesses

Explanation:

From the question, we are informed about Craig and Kris who were walking directly toward each other in a congested store aisle. Craig moved to his left to avoid Kris, and at the same time Kris moved to his right to avoid Craig. They bumped into each other. This example illustrates the concept of coordination failure and in this case, This idea relates to macroeconomic instability because the economy does not achieve a mutually beneficial equilibrium because there is a lack of coordination of the actions of people and businesses. Coordination failure can be regarded as failure that takes place as a result of group of firms want to achieve a more desirable equilibrium, but resulted to failure as a result of their decision making not been coordinated

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2 years ago
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