Which country use tax brackets as part of their tax system?

Assume that on December 31, 2019, Kimberly-Clark Corp. signs a 10-year, non-cancelable lease agreement to lease a storage buildi

Anika [276]

Answer:

a) the journal entry to record the signing of the lease agreement:

December 31, 2019, lease agreement signed

Dr Right of use 483,360

Cr Lease liability 483,360

the lease liability must record the present value of the 10 annual lease payments: $68,099 and 8% discount rate:

present value of an annuity due = payment + {payment x [1 - (1 + r)⁻⁽ⁿ⁻¹⁾]/r}

payment = 66,699
r = 8%
n - 1 = 10 - 1 = 9

PV annuity due = 66,699 + {66,699 x [1 - (1 + 0.08)⁻⁹]/0.08} = 66,699 + 416,661 = $483,360

the journal entries to record the annual lease payments:

December 31, 2019, first annual lease payment

Dr Lease liability 66,699

Cr Cash 66,699

December 31, 2020, second annual lease payment

Dr Lease liability 33,366

Dr Interest expense 33,333

Cr Cash 66,699

interest expense = $416,661 x 8% = $33,333

December 31, 2020, depreciation expense

Dr Depreciation expense - leased building 48,336

Cr Accumulated depreciation - leased building 48,336

December 31, 2021, third annual lease payment

Dr Lease liability 36,035

Dr Interest expense 30,664

Cr Cash 66,699

interest expense = $383,295 x 8% = $30,664

December 31, 2021, depreciation expense

Dr Depreciation expense - leased building 48,336

Cr Accumulated depreciation - leased building 48,336

b) this would increase the right to use asset and lease liability by:

= -$5,000 + $1,000 = $4,000

c) this would increase the right to use asset and lease liability by:

= 5,000 + {5,000 x [1 - (1 + 0.08)⁻⁹]/0.08} = $36,234

8 0

3 years ago

The next dividend payment by GMR Enterprises will be $1.82 per share with future increases of 2.8 percent annually. The stock cu

In-s [12.5K]

Answer:

4.70%

Explanation:

According to the given situation, the computation of dividend yield is shown below:-

Dividend Yield = Expected dividend ÷ Current price

where,

expected dividend is $1.82

And, the current price is $38.70

Now place the values to the above formula

So, the dividend yield is

= $1.82 ÷ $38.70

= 0.0470

or

= 4.70%

Therefore for computing the dividend yield we simply applied the above formula.

4 0

3 years ago

Assume there is a simultaneous decrease in the incomes of people in the market for new homes and a decrease in the wages paid to

ioda

Answer:

Lower price for new houses.

Explanation:

The decrease in the income of people will decrease the demand for houses and the demand curve will shift leftwards. Meanwhile, the decrease in the wages for carpenters, plumbers, etc will decrease the cost of production so the producer will supply more when the cost of production decreases. So supply curve will shift rightwards. Resulting there will be lower prices due to shifts in the leftward demand curve and rightward supply curve.

4 0

2 years ago

Luker Corporation uses a process costing system. The company had $162,500 of beginning Finished Goods Inventory on October 1. It

elena55 [62]

Answer and Explanation:

The journal entry for cost of goods sold is as follows:

Cost of goods sold Dr $841,300

To Finished goods inventory $841,300

(Being the cost of goods sold is recorded)

The value of cost of goods sold is

= $162,500 + $839,000 - $160,200

= $841,300

Here the cost of goods sold is debited as it increased the expense while the finished goods inventory is credited as it decreased the assets

4 0

2 years ago

One who, in good faith and without knowledge of defect, pays valuable consideration for a note before it is due is referred to a

iogann1982 [59]

Answer:

The correct answer to the following question is A holder in due course.

Explanation:

A holder in due course is said to be a legal term , which describes about the person who has in good faith obtained a negotiable instrument and he or she has exchanged something valuable for that instrument, but the person is unaware of the fact that there might be some defect in the instrument like in title of person who is negotiating that contract.

6 0

2 years ago