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mr Goodwill [35]
3 years ago
12

Slow Mo Consulting leased machinery from Red Inc. on January 1, 2018. The lease was recorded as an operating lease. The present

value of the lease payments discounted at 12% was $843,000. Eight annual lease payments of $133,212 are due each Jan 1 beginning January 1, 2018.
On December 31, 2018, the amount reported as Amortization Expense on the Income Statement will be $_____.
Business
1 answer:
STALIN [3.7K]3 years ago
3 0

Answer:

The amount reported as amortization expense on the income statement is the annual lease payment of $133,212.00

Explanation:

Lease can belong to any of the two classes, namely operating lease and finance lease.

This is an example of operating lease where risks and rewards of ownership are not transferred to the lesse(the tenant), as a result the lesse cannot recognize the right-of-use asset on its balance sheet as well as lease liabilities.

Under operating, the lease payments made periodically is treated as the lease expense for the period it relates,this account for my position that the amortization expense on the income statement is the lease rental of $133,212.00

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stealth61 [152]

Answer:

Reduce the suppliers to 2-3 and have long term relationships with them. They should employ an ERP across the functions for better communications

Explanation:

Adidas and Reebok are the two biggest companies in the world that produce sport outfits. Adidas bought over Rebook in 2005 but wanted the new subsidiary to continue to operate under their unique brand name.  

However, there are certain aspects of New Balance’s operations strategy they should change which includes the following;

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6 0
3 years ago
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aliya0001 [1]
The correct answer is the firm's component cost of debt for purposes of calculating the wacc is  7.32%. 
4 0
3 years ago
Which of these terms is most closely related to tradeoffs?
ohaa [14]
Hello!

You forgot the alternatives!

incentives 
<span>margin </span>
<span>markets </span>
<span>scarcity
</span>
The term that is most closely related to trade-off, from the list above, is: scarcity. Scarcity is the condition that moves the trade-offs, it determines the quantity of each product you need or have. So, for example, if you need a product that you don't have enough and another that you have in excess, you can exchange it with someone that have interest in your product and has the one that you need.

Hugs!
7 0
3 years ago
Data from the financial statements of Dils Brothers Co. and J. Cox, Inc. are presented below (in millions): Dils Brothers Co. J.
9966 [12]

Answer:

0.64

Explanation:

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2016 debt-to-total-assets ratio for J. Cox, Inc. is 0.64

3 0
2 years ago
Employers cite dressing inappropriately as one of the biggest mistakes job applicants make in interviews. True or False
IrinaK [193]

Answer:

True

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6 0
3 years ago
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