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Katarina [22]
3 years ago
6

On January 2, 20X1, Cole Co. signed an eight-year noncancelable lease for a new machine, requiring $15,000 annual payments at th

e beginning of each year. The machine has a useful life of 12 years, with no salvage value. Title passes to Cole at the lease expiration date. Cole use straight-line depreciation for all of its plant assets. Aggregate lease payments have a present value on January 2, 20X1, of $108,000, based on an appropriate rate of interest. For 20X1, Cole should record amortization expense for the leased machine at:
Business
1 answer:
zvonat [6]3 years ago
7 0

Answer:

Cole should record amortization expense for the leased machine at $9,000.

Explanation:

Machine cost would be recorded in book at = present value of Aggregate lease payments

Machine cost would be recorded in book at = $108,000

Depreciation (amortization) expense for the leased machine in first year= (Machine cost - salvage value)/Useful life

Depreciation (amortization) expense for the leased machine in  first year= ($108,000 - 0)/12

Depreciation (amortization) expense for the leased machine in  first year= $ 9,000

Therefore, Cole should record amortization expense for the leased machine at $9,000.

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Which of the following events would cause GDP for 2019 to increase?
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Answer:

C In May 2019James buys a 2019 Honda Accord .

Explanation:

GDP refers to a country's monetary value of all the finished goods and services produced in a particular year. GDP incorporates the value of products and services produced within the country's boundaries regardless of who produced them.

Economists calculate GDP for a particular year by considering only the finished goods or services in that year. They calculate GDP using either the income, expenditure or the production approach. In any of the approaches, only the Honda produced and sold in 2019 will add to the GDP of 2019. The products that were finished in 2018 were accounted for in GDP for 2018.

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3 years ago
If the price level rose from 131 to 157 but economic output remained the same, real gdp would:______
Arlecino [84]

If the price level rose from 131 to 157 but economic output remained the same, real GDP would increase.
The price level has increased and the output is constant then the nominal GDP would increase.

  • The term "Gross Domestic Product," or GDP, refers to the total monetary worth of all finished products and services produced (and marketed) inside a nation within a specific time period (typically 1 year). Purpose. GDP stands for "Gross Domestic Product" and reflects the total monetary worth of all finished products and services produced (and sold on the market) inside a nation during a specific period of time. GDP is the most often used indicator of economic activity (typically 1 year). Purpose. The most often used indicator of economic activity is the GDP.

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8 0
2 years ago
George has to present the goals of information management to his team member. What is a goal of information management?
Anvisha [2.4K]

First, we should know the definition of the information management. Information management is the management of information from the particular sources and then the distribution of that information to a particular person or audience. So the goal of information management is to make organization to be able to collect, manage, store and deliver correct information to the correct audience.




5 0
3 years ago
Mary Willis is the advertising manager for Sheffield Shoe Store. She is currently working on a major promotional campaign. Her i
Setler [38]

Answer:

If Mary's idea is implemented the break-even point would increase from 16,000 units to 21,800 units

Explanation:

<em>The break-even point is the level of activity where a business makes no profit or loss. At this level of activity, the total contribution equals the total fixed costs. </em>

<em>To calculate the break even point in units, we use the formula below: </em>

<em>Break-even point = Fixed cost for the period / selling price - variable cost</em>

Current break-even point = 128,000/(20-12)

                                      = 16,000  units

With Mary's idea, the break-even point will be

New break-even point = ( 128,000+ 24600)/(19-12)

                                    = 21,800  units

If Mary's idea is implemented the break-even point would increase from 16,000 units to 21,800 units

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Hp has found themselves with a short term part shortage situation that is affecting their ability to cover customer demand of a
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HP could offer discounts on other models for a limited time to shift demand until supplies even out.

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