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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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Under the temporal method, income statement items that relate to newly recognized assets and liabilities generally are remeasure
ad-work [718]

Answer: historical exchange rate

Explanation:

The temporal method is also referred to as the historical method. Under this method, the currency of a foreign subsidiary is being converted into the currency of the parent company.

It should be noted that under the temporal method, the income statement items which relate to newly recognized assets and liabilities generally are remeasured using the historical exchange rate.

6 0
3 years ago
In Ricci v. DeStefano, Ricci, a white firefighter, took and passed the City of New Haven firefighter's test, required of all app
vfiekz [6]

Answer:

The correct answer is A. In Ricci v. DeStefano, the Supreme Court ruled that an employer may not simply disregard a test based on unwanted results unless the test is shown to be biased or deficient.

Explanation:

Ricci v. DeStefano is a Supreme Court ruling of 2009, after a lawsuit by nineteen firefighters who claimed to have been discriminated against in terms of career development.  They denounced that they had been discriminated after having passed the admission tests and still had not been promoted, since no African-American candidate had passed the tests. They also denounced that they had not been promoted because the Fire Department did not want to promote a group of new recruits without including within it any member of racial minorities.

Finally, the Supreme Court established that said procedure violated Title VII of the Civil Rights Act of 1964, since in the case equal access to employment was not guaranteed (in this case, favoring minorities over white firefighters), for set different demands for purely racial reasons.

7 0
3 years ago
How did the conflicts between labor unions and business capital evolve during the gilded age? be sure to address strikes, the ev
slavikrds [6]
The industry's progress was confronted with a tough attitude of trade unions which had taken strength after the war.
The strategy adopted was the struggle for wage increases and the conservation of a monopoly power, which in many cases affected the introduction of technical improvements.
At that time, international sectoral trade unions and multinational corporations negotiate international framework agreements that allowed for Labour advancement.
It should also be noted that from the creation of the International Workers Association (IWA), the First World Trade union centre of the working class, the right to strike is recognised as one of the fundamental rights of the individual.Since then, representatives of workers from different countries jointly deal with the social problems that concerned them.
6 0
3 years ago
You are planning to buy 2019 MINI Cooper on a loan. Price of the car is $26,000. You are planning to make monthly payments for t
Sergeu [11.5K]

Answer:

$1,223.91

Explanation:

As per the concept of time value of money, the value of money today is more than the value of money tomorrow.

Given:

Price of car = $26,000

Interest rate 12%, compounded monthly

Tenure = 2 years

Now, Price of the car is the value of money today to purchase the car. So, while computing the monthly payment for car $26,000 will be considered as present value.

Monthly payment for car can be computed easily using Microsoft excel.

Use the following mentioned formula to calculate the monthly payment.

"=PMT(rate,nper,pv,[fv])"

wherein,

Rate = 12%/2 (because it has been compounded monthly)

nper = 2*12 (because 2 years are to be compounded monthly.)

Pv = $26,000 (as mentioned earlier)

Since, there is no Fv so it blank.

5 0
3 years ago
On September 1, Year 1, Great Lakes Equipment receives $24,000 from a customer for work to be performed evenly over the next 2 y
posledela

Answer:

Great Lakes should recognize on the income statement for the year ending December Year 1 $4,000

Explanation:

The income statement only recognize the amount of money that was generated during the period of the income statement.

If the company invoiced by month, it only recognize the total amount for the last four months of the year.  

7 0
3 years ago
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