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3 years ago

Each currency has a changing value relative to other countries. This is referred to as the country’s blank

1 answer:

3 0

Each currency has a changing value relative to other currencies. This is referred to as a<u> "currency's exchange rate."</u>

An exchange rate is the rate at which one currency will be exchanged for another, it is additionally viewed as the estimation of one nation's cash in connection to another currency.

Exchange rates are resolved in the foreign exchange market, which is available to an extensive variety of various sorts of purchasers and venders, and where money exchanging is ceaseless: 24 hours daily aside from ends of the week.

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On June 30, 2021, Georgia-Atlantic, Inc. leased a warehouse equipment from IC Leasing Corporation. The lease agreement calls for

Rufina [12.5K]

Answer:

1. $3,800,001

2. Pretax amount of liability $2,842,112

Pre tax amount of right to use asset $3,325,000

3. Pre tax amount of interest expense $162,003

Pre tax amount of amortization expenses $475,000

Explanation:

1. Calculation for the Present value

Using this formula

PV of minimum lease payments used to record right to use assets = Semi Annual lease payments * Cumulative PV Factor of annuity due for 8 periods at 5%

Where,

Semiannual lease payment = $559,946

Total semiannual payments = 4*2 = 8

Incremental borrowing rate = 10%, 5% semiannual

Let plug in the formula

PV of minimum lease payments used to record right to use assets= $559,946 * 6.78637

PV of minimum lease payments used to record right to use assets= $3,800,001

Therefore the Present value will be $3,800,001

2. Calculation for the Pretax amount for liability and Pretax amount for right-of-use asset

Calculation for Pretax amount of liability

First step is to calculate the Pretax amount of liability on 30.06.2021

Pretax amount of liability on 30.06.2021 = ($3,800,001 - $559,946)

Pretax amount of liability on 30.06.2021= $3,240,055

Second step is to calculate the Interest expense for 31.12.2021

Interest expense for 31.12.2021 = $3,240,055 * 5%

Interest expense for 31.12.2021= $162,003

Now let calculate the Pre tax amount for liability December 31, 2021

Pre tax amount for liability December 31, 2021 = $3,240,055 + $162,003 - $559,946

Pre tax amount for liability December 31, 2021= $2,842,112

Therefore The Pre tax amount for liability December 31, 2021 will be $2,842,112

Calculation for Pre tax amount of right to use asset

First step is to calculate the Depreciation on right to use assets for 2021

Depreciation on right to use assets for 2021 = $3,800,000 / 4 * 6/12

Depreciation on right to use assets for 2021 = $475,000

Now let calculate the Pre tax amount of right to use asset to be reported for 2021

Pre tax amount of right to use asset to be reported for 2021 = $3,800,000 - $475,000

Pre tax amount of right to use asset to be reported for 2021 = $3,325,000

Therefore Pre tax amount of right to use asset to be reported for 2021 will be $3,325,000

3. Calculation for Pretax amount for interest expense Pretax amount for amortization expense

Calculation for Pretax amount for interest expense

Pre tax amount of interest expense = $3,240,054 * 5%

Pre tax amount of interest expense= $162,003

Therefore the Pre tax amount of interest expense will be $162,003

Calculation for Pre tax amount of amortization expenses

Pre tax amount of amortization expenses = $3,800,000 / 4 * 6/12

Pre tax amount of amortization expenses = $475,000

Therefore The Pre tax amount of amortization expenses will be $475,000

4 0

3 years ago

The Federal Open Market Committee promotes price stability and economic growth through

damaskus [11]

Federal Open Market Committee holds regularly scheduled meeting per year. Meeting's agenda includes reviews economic and financial conditions. They also determines stance of monetary policy and assesses the risk to its long run goal of price stability and sustainable economic growth.

4 0

3 years ago

Read 2 more answers

A currency drain occurs when

gogolik [260]

Answer:

The correct answer is: non-bank public increases its holdings of currency outside the banking system.

Explanation:

A currency drain refers to the situation where there is an increase in currency held outside the banking system. When the public holds more money outside the banking system, it reduces the total reserves of the banks. The excess reserves get reduced as well.

The currency gets drained from the banking system, so banks can create less money. This causes a reduction in the money supply.

5 0

3 years ago

BigFoot is a new online shoe retailer that just hit the market. If a customer chooses to shop at BigFoot rather than Zappos, thi

Anna007 [38]

Answer:

<u>Threat of new entrants.</u>

Explanation:

Porters Five Forces includes;

The bargaining power of customers,
The threat of substitute products or services and others,
The bargaining power of suppliers,
Competitive rivalry and finally,
Threat of new entrants.

However, it is the threat of new entrants scenario we find in Bigfoot's case because Zappos is experiencing reduced market share because of the new entrant (Bigfoot).

3 0

3 years ago

Which of the following is absolutely necessary for successful implementation and operation of MRP? (I) accurate inventory record

frez [133]

Answer:

(A) I, II, and IV only

Explanation:

The Material Requirements Planning MRP is used to calculate tha materials needed for production. It may be done by software but it can be done without any technological tool.

The most important information for MRP is about the available inventory for future production, in this way the company will know what materials are needed for future production. To provide the materials on time it is necessary to know the master schedules of production, making sure that the supplies will be ready on time for manufacturing process. Finally, the accurate Bills of materials are used as a check list to verify that there is not any pending component for the production process. Even when the MRP may include costs, it is not a vital component for the system and some companies can have MRP without including costs.

4 0

3 years ago