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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

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How do tariffs impact international trade?
torisob [31]

Helllllooooo!!!!! I am going to answer your question, my very best!! Don't expect me to be proffessor smart, i barely in grade 9! If i answer well, i want brainliest please! If i do not answer well, please comment!

Tariffs cost a lot of money to ship overseas the products people want.  More demand is required as well as a variety of a lot of domestic products from multiple countries. Trade needs to be well within countries and ships need to be maintained. The trade balance may go wrong sometimes, such as a shipwreck. Then there will be a lot of international complications, not known to the public. Companies will pay more for the lost goods.

I wasn't sure if you wanted specifics, hope this works. HAVE A GREAT WEEK!

3 0
4 years ago
Read 2 more answers
Suppose the owners of Lopes and HomeMax meet for a friendly game of golf one afternoon and happen to discuss a strategy to optim
Amiraneli [1.4K]

Answer:

c. $2.0 million for Lopes and by $2.5 million for HomeMax.

Explanation:

For the problem above, the two organizations agreed to work on a particular project because they believed that they will benefit from the outcome of the project. Based on the available information provided in the question, the profit that Lopes will make yearly will increase by $2.0 million while that of HomeMax will increase by $2.5 million.

3 0
3 years ago
Blowing Sand Company has just received a one-time offer to purchase 10,000 units of its Gusty model for a price of $22 each. The
VLD [36.1K]

Answer:

a. Accept the order

b. Increase in short-term profit of $50,000

Explanation:

<em>Note : Blowing Sand has "enough excess capacity" this means that fixed cost will be the same in the range or they will be ocurred whether or not the special order is accepted.</em>

Therefore fixed costs are Irrelevant for this decision.

<u>Incremental Costs and Revenues - accept the special order</u>

Sales ( 10,000 units × $22 each)                               $220,000

<em>Less</em> Variable Costs ( 10,000 units × $17each)         ($170,000)

Net Income                                                                  $50,000

The special order will result in an increase in short term profit of $50,000. Therefore, Blowing Sand Company should accept the order.

8 0
4 years ago
Read 2 more answers
Diminishing returns are a reason that fixed costs remain constant. the marginal cost curve is upward sloping. the average fixed
Molodets [167]

Answer:

the marginal cost curve is upward sloping.

Explanation:

Utility can be defined as any satisfaction or benefits a customer derives from the use of a product or service.

This ultimately implies that, any satisfaction or benefits a customer derives from the use of a product or service is generally referred to as a utility.

Basically, the marginal utility of goods and services is the additional satisfaction that a consumer derives from consuming or buying an additional unit of a good or service.

For example, buying a candy stick and eating it may satisfy your cravings but eating another one (an additional or extra unit) wouldn't give you as much satisfaction as the first due to diminishing marginal utility.

In Economics, the law of diminishing marginal utility states that as the unit of a good or service consumed by an individual increases, the additional satisfaction he or she derives from consuming additional units would start decreasing or diminishing as the units of good or service consumed increases.

Marginal cost can be defined as the additional or extra cost that is being incurred by a company as a result of the production of an additional unit of a product or service.

Generally, marginal cost can be calculated by dividing the change in production costs by the change in level of output or quantity. A marginal cost curve is upward sloping because of the law of diminishing returns.

4 0
3 years ago
Although Martin is not in top management, he is charismatic and well liked by others in his organization. Other employees often
Bingel [31]

Answer:

<em>Informal leadership</em>

Explanation:

Informal leadership is an individual's <em>ability to manipulate other people's behavior through means other  than structured authority granted by the company across its rules and regulations. </em>

Informal leadership is simply any kind of leadership that is not formally based.

7 0
3 years ago
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