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weeeeeb [17]
3 years ago
7

Wall Co. leased office premises to Fox, Inc. for a five-year term beginning January 2, 20X2. Under the terms of the operating le

ase, rent for the first year is $8,000 and rent for years 2 through 5 is $12,500 per annum. However, as an inducement to enter the lease, Wall granted Fox the first six months of the lease rent-free. In its December 31, 20X2, income statement, what amount should Wall report as rental income
Business
1 answer:
jasenka [17]3 years ago
7 0

Answer:

Since the lease amount varies, we must calculate the annual rental income using the following formula:

annual rental income = {lease year 1 - (lease year 1 x 6/12) + [lease year 2(and beyond) x number of remaining contract years] / total number of contract years}

annual rental income = [$8,000 - ($8,000 x 6/12) + ($12,500 x 4)] / 5 years = {$8,000 - $4,000 + $50,000} / 5 years = $54,000 / 5 = $10,800

You might be interested in
The Assembly Department started the month with 24,900 units in its beginning work in process inventory. An additional 309,900 un
OleMash [197]

Answer:

304900 units should be transferred to the next processing department during the month.

Explanation:

Work in process : As a name suggest, the Work in process (WIP) is a process in which the work is in under processing or we can say it is not 100 % completed. It can be incomplete in any cycle .

It includes various cost like - direct material , direct labor, overhead, etc.

To find out how much units is to be transferred, the following equation is used which is shown below.

= Opening Work in process inventory + Purchase of inventory - closing work in progress inventory

= 24,900 units + 309,900 units - 29,900 units

= 304900 units

Thus, 304900 units should be transferred to the next processing department during the month.

6 0
3 years ago
Mcgraw hill education physical science vocabulary list 8th grade
Pani-rosa [81]
Um.. is that a question or just telling us?...
3 0
3 years ago
The Association of Organic Food Growers, which does not include all organic farmers and ranchers, refuses to deal with any parti
zmey [24]

Answer:

a per se violation of antitrust law.

Explanation:

The antitrust laws can be defined as those laws that are created by the US government to protect consumers from unfair means of competition in market. The aim of creating such laws is to ensure the protection of customers from corruptive business practices and also to ensure safe healthy competitive environment among same business companies.

<u>In the given scenario, the Association of Organic Food Growers is violating the antitrust law by boycotting farmers, ranchers, etc. The antitrust laws are violated by companies in several ways among them is by boycotting</u>.

Boycotting can be defined as an agreement between several companies that excludes a group of customers or market to avert them from buying aanyy goods or products.

This boycotting agreement is a per se violation of antitrust law.

5 0
3 years ago
Parton Company, a manufacturer of snowmobiles, is operating at 80% of plant capacity. Parton's plant manager is considering maki
ira [324]

Answer:

The answer is: a

Explanation:

The Parton Company has a 'make or buy' decision. This decision involves analysing the incremental costs associated with each option. Incremental costs are costs incurred as a result of producing one more unit of a product. If the excess capacity can be utilised to produce the headlights at a lower cost than the cost of acquiring the headlights from an external supplier, then the company should produce the headlights.  

The Parton Company incurs $12.80 per headlight purchased from the external supplier. Added to this cost, are the existing costs of operating below plant capacity. If making the headlights in the manufacturing plant yields a positive contribution to fixed costs, then the Parton company should produce the headlights in the manufacturing plant.

By producing the headlights, the Parton company gains a contribution to fixed costs of $1.03 per headlight.

Foregone purchase costs from supplier:                          $12.80

Incurred costs (directly) from production:                        ($11.77)

Direct materials                                                                     ($4.45)

Direct Labour                                                                         ($3.45)

Manufacturing Overheads: $(6.45*0.6)                               <u>($3.87)</u>

Net gain per headlight                                                           <u> </u><u>$1.03</u>

6 0
4 years ago
To accurately compare the rate of return on one investment with another, they should be:
NISA [10]

Answer:

Measured over equal time periods.

Explanation:

To get an understanding of the <u>rate</u> of return you first need to lay down a period of time that you can use as a baseline when comparing the return of each investment.

7 0
3 years ago
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