Complete question:
On January 1. Year 1. White Co. sold a property with a remaining useful life of 20 years to Blue Co. for $900.000. At the same time. White entered into a contract with Blue for the right to use the property (leaseback) for a period of 6 years. with annual rental payments of 580.000 that approximate the market rental payments for similar properties. On January 1. Year 1. the carrying amount of the property was 5680.000. and its fair value was 5770.000. A discount rate for the lease of 10% is used by both White and Blue. The present value factor for an ordinary annuity at 10% for 6 periods is 4.3553. The lease does not transfer the property to White at the end of the lease term and does not include a purchase option.
What amount of lease expense for the right of use of the property is recognised by White in Year 1 ?
A. $0
B. $130,000
C. $90,000
D. $220,000
Answer:
$90,000 amount of lease expense for the right of use of the property is recognised by White in Year 1
Explanation:
If the leaseback is known as an operating lease, the original transition to the buyer-lessor of the asset should be taken into account as the selling of an asset, given that all the income identification requirements have been fulfilled.
If the deal is of equal value, the lender lease is informed of the gain or loss of sale between the purchase price and the sum of the land that is held. Yet this is not a equal value trade. The property's sale price is higher than its market value. Accordingly, the income or loss on sale seems to be the difference between the equal worth and the value of the land.
Therefore, on 1 January, White records a benefit of $90,000 in revenue of $770,000 (fair value of $680,000 in carrying amounts)
A change in depreciation method is treated as a change in estimate that is achieved by a change in accounting principle, and is accounted for prospectively in the current and future periods.
The rules and regulations that businesses and other organizations must abide by when reporting financial data are known as accounting principles. These regulations standardize the terminology and procedures that accountants must employ, making it simpler to analyze financial data.
A unified set of accounting guidelines, methods, and standards known as generally accepted accounting principles (GAAP) were released by the Financial Accounting Standards Board (FASB).
The consistency that accounting principles establish enables more accurate and effective viewing of financial statements and reporting for businesses.
Learn more about accounting principles here
brainly.com/question/5399294
#SPJ4
They differ in their difference threshold. This is being defined when their sensory stimuli is different, making the individual perceive them also, as different. This occurs in the scenario given above for Susan couldn't hear the level 7 volume when Mary could already hear it.
In this problem we are given the mean of $1100, SD of $150 and x equal to $900. In this case, we need to use the z-score table to answer the problem:
z = (x-mean)/sd
z = (900-1100)/150
z = -1.33
from z-table, the probability at the left of z= -1.33 is equal to 9.18%
Small businesses were able to afford to accept credit and debit card transactions because a flat fee was charged per transaction.
Smaller companies and individual vendors were able to accept credit and debit cards for payment since they didn't need to invest in expensive servers or infrastructure. Servers at restaurants were able to process customer payments right at the table, increasing the speed at which they could turn over tables.
Smaller groups and individual carriers had been capable of taking delivery of credit and debit cards for the price considering the fact that they did not need to spend money on high-priced servers or infrastructure. This led organizations to attention to how their personnel was prompted and managed and led to the development of a principle Y management fashion that specializes in the force for character self-achievement. McGregor's perspective places the obligation for performance on managers in addition to subordinates.
Learn more about The Benefits of square inc. here:-brainly.com/question/5777247
#SPJ4
