1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
In-s [12.5K]
3 years ago
5

If the lessor meets any one of the five Group I criteria, then the lessor classifies the lease as a(n) ________. If the lessor m

eets both of the Group II criteria, but none of the Group I criteria, then the lessor classifies the lease as a(n) ________. If the transaction does not meet either the Group I or Group II criteria, then the lessor classifies the lease as a(n) ________.
Business
1 answer:
DENIUS [597]3 years ago
7 0

Answer:

Sales type lease, direct financing lease, operating lease

Explanation:

A lease is a contractual agreement whereby the lessor(landlord) is paid for the use of his or her assets/properties by the lease(tenant). The assets that are usually leased are vehicles, buildings etc where payment is made for a specified period.

Sales type lease. Here, the dealer(landlord) earn interest revenue accrued plus the profit on the sale of asset. Whereas the profit is arrived at by deducting the selling price from the actual sales price . Profit is also earned and recognized at the beginning of the lease period.

Direct financing lease. The only benefit earned on this type of lease is the interest by the lessor-landlord. There is no profit or loss in the lease transaction. The actual value of leased asset is the same as the purchased value of the asset.

Operating lease is the combination of both sales type lease and direct financing lease. Here, the benefit of asset leased like yearly depreciation is claimed by the lessee-tenant . The ownership of leased asset must be transferred to the lessor at the end of agreed term subject to lessee having bargaining option. The lesse may however purchase the asset at a much reduced price say seventy five percent of the market value.

You might be interested in
The Missing Link Chain-Link Fence Company is trying to determine how many chain-link fabricating machines to buy for its factory
OleMash [197]

Answer:

Explanation:

What is given:

The price of a new fabricating machine - 60

The price of a one-year-old machine - 51

The real interest rate is 10% per year

Marginal product of fabricating machines 165-2K (K - desired number machines)

If calculate the depreciation, (60-51)/51 = 15%

a) Find user cost of capital

User cost of capital is the sum of interest rate and depreciation cost multiplied by the price of new machine

= 60*(0.10+0.15) = 15 units

b) Determine the number of machines that will allow Missing Link to maximize its profit

165-2K=15

2K = 150

K = 75 machines

c)

Suppose that Missing Link must pay a tax equal to 40% of its gross revenue. What is the optimal number of machines for the company?

165-2K = 15/(1-0.4)

165-2K=14/0.6

165-2K=25

2K=140

K=70 macines

4 0
3 years ago
The City of West Hutchison is constructing a new road, which it estimates will cost $7.2 million. The city will finance the road
Mice21 [21]

Answer:

1.

Budgetary fund balance reserved for encumbrances (DR)  $7,200,000

Encumbrances-Capital Project (CR)  $7,200,000

2.

Cash (DR)  $1,200,000

Government Grant (CR)  $1,200,000

3.

Cash (DR)  $6,000,000

Bonds Payable (CR)  $6,000,000

Explanation:

1. The Budgetary entry for encumbrance is given as follows :  

Budgetary fund balance reserved for encumbrances (DR)  $7,200,000

Encumbrances-Capital Project (CR)  $7,200,000

2. The government grant received will be recorded as :

Cash (DR)  $1,200,000

Government Grant (CR)  $1,200,000

3. The Issuance of Bonds needs to be recorded in the journal ledger as :

Cash (DR)  $6,000,000

Bonds Payable (CR)  $6,000,000

6 0
3 years ago
Any effort by the Federal Trade Commission (FTC) to evaluate expected deceptive marketing practices would be seriously flawed be
Llana [10]

Answer:

True

Explanation:

This is true because the Federal Trade commission(FTC) analyze and investigate a seller or sellers who may be so cooperative as to make agreements that ensure large amounts of profit for them which is likely harmful and exploitative to consumers . FTC investigates business mergers which may be horizontal or vertical that are likely done for the purpose of increasing market share and fostering a sort of monopoly of the market. However, mergers and cooperation among businesses in the market do not always yield a monopoly and the FTC may be wrong(sometimes) to wave mergers that could increase the quality of goods or services in a market

7 0
2 years ago
Jennifer couldn't believe her bad luck. The business-planning cycle at Allworld Insurance was almost over. The only thing her bo
Natalija [7]

Answer:

Explanation:

Strategic plans: They are those who seek to fulfill the company's wishes in the long term. They are usually described in a general way and are executed through tactical plans.

Tactical plans: They are those who take the strategic plans and turn them into specific activities for their execution and development.

Operational plans: Operational plans are all those that seek to create the mechanisms to plan and fulfill tactical plans.

Mission Statement: is the set of general objectives and principles of work to grow the company.

According to this definitions the answers are:

1) (D)Mission statement.

2) (A)Strategic.

3) (D)Tactical.

4) (A)Operational.

Goals questions:

1) (D) The statement does not specifies the time limit to accomplish the goal.

2) (A) Information regarding the type of air conditioners and refrigerators to be sold and the place where the goal is set is missing.

4 0
3 years ago
Tee Time Golf Resort plans to use famous Kauri wood from New Zealand for parts of the interior of the magnificent clubhouse at i
Tju [1.3M]

Answer:

correct option is C. it's a good time to buy the wood.

Explanation:

given data

slab = 10 feet

cost Tee Time =  $5,000

$500 US dollars = $738 NZ dollars

solution

If they import timber from New Zealand. Tea Golf Resort pays less than $ 5000 to import Wood from New Zealand at the current exchange rate. This is a good time for them to import forests

we get here current exchange rate of 1 dollar that is as

US $500 = NZ $738

so $1 = \frac{738}{500}  

$1 = NZ  $1.476

current exchange rate is $1 = NZ $1.476

so

10 foot slab costs $5000

so Tee Golf Resort will pay is

Tee Golf Resort pay = \frac{5000}{1.476}  

Tee Golf Resort pay = $3387.53

so correct option is C. it's a good time to buy the wood.

3 0
3 years ago
Other questions:
  • After completing integration testing, a systems analyst must perform ____________________, which involves the entire information
    10·2 answers
  • Consider Pacific Energy Company and U.S. Bluechips, Inc., both of which reported earnings of $961,000. Without new projects, bot
    13·1 answer
  • 1. Organize around outcomes, not tasks. 2. Identify all the organization’s processes and prioritize them in order of redesign ur
    6·1 answer
  • Fil in the blanks with options given in below:
    10·1 answer
  • Consider 2 scenarios: Boom Economy and Normal Economy. The Boom economy has 30% chance of happening, while Normal economy has 70
    12·1 answer
  • For products with a high degree of ______________________, in-store sampling (e.g., handing out tasting samples of new food item
    13·1 answer
  • Can these workers build the desired houses without plan?explain your answer.​
    14·1 answer
  • The following is the disadvantage of using a telephone?​
    10·2 answers
  • An economy has a monetary base of 1,000 $1 bills. calculate the money supply in scenarios a - d. then answer part e.
    9·1 answer
  • when microwave ovens were in the introduction stage of their product life cycle, some consumers were willing to pay exorbitant p
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!