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
Arlecino [84]
3 years ago
11

Beta Company leased equipment from Summer Industries. The lease agreement qualifies as a finance lease and requires annual lease

payments of $50,000 over an eight-year lease term (also the asset’s useful life), with the first payment at January 1, 2019, the beginning of the lease. The interest rate is 6%. The asset being leased cost Summer $300,000 to produce. Costs of $5,866 for legal fees for the lease execution were the responsibility of the lessor. The total increase (decrease) in earnings (pretax) on Summer’s December 31, 2019, income statement would be
Business
1 answer:
Tamiku [17]3 years ago
3 0

Answer:

Total increase in pretax earnings on Summer’s December 31, 2019, income statement is $20,253

Explanation:

Fair value of asset sold on lease = Present value of lease payments = $50,000 * Cumulative PV factor at 6% for 8 periods of annuity due

= $50,000 * 6.20979

= $310,490

Interest income for 2019 = ($310490 - $50,000) * 6% = $15,629

Total increase in pretax earnings on Summer’s December 31, 2019, income statement = $310490 - $300,000 + $15,629 - 5866 = $20,253

You might be interested in
Cost pools should be charged to responsibility centers by using: budgeted amounts of allocation bases because the cost allocatio
Talja [164]

Answer: budgeted amounts of allocation bases because the cost allocation to one responsibility center should not influence the allocations to others

Explanation:

A cost pool is a collection of homogeneous costs thqt are to be assigned. Cost pools is an accounting term which refers to the groups of accounts serving used to express the cost of goods and service that are allocatable within a business or a manufacturing organization. The allocation base for a cost pool is a cost driver.

Cost pools should be charged to the responsibility centers by using the budgeted amounts of allocation bases. This is because the cost allocation to a responsibility center should not influence allocations to others.

6 0
3 years ago
According to W. E. B. Du Bois, "The true college will ever have one goal—not to earn meat, but to know the end and aim of that l
emmainna [20.7K]

Answer:

The correct answer is True.

Explanation:

Basically, Du Bios' message invites awareness of the true usefulness of education, which is not found within the productive environment but in service and satisfaction to others. Also, education has to be a process of self-growth where progress is internalized and people can feel the accomplishment of reaching an educational goal.

7 0
3 years ago
Edgar is preparing to deliver an informative speech on studying abroad in Spain. After researching the topic, he settled on four
Talja [164]

Answer:

Topical

Explanation:

According to my research on different organizational patterns, I can say that based on the information provided within the question Edgar is using a Topical organizational pattern. This is a pattern that focuses on organizing a bunch of information under a larger related topic. Which in this situation the larger main topic is "Studying Abroad in Spain" while the subtopics are information related to this.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

3 0
3 years ago
Read 2 more answers
Under which circumstance would someone need disability insurance?
Mandarinka [93]
You would need Disability insurance to protect one's income in the case that he or she becomes disabled.

So circumstances could include car crashes natraul events
8 0
3 years ago
Read 2 more answers
Manufacturers of consumer products use transactional websites less frequently than other firms because in some industries, this
Elden [556K]

Answer:

The correct answer is letter "B": there is a threat of channel conflict.

Explanation:

Channel conflicts arise when producers believe their operations are compromised because of unfair practices of competitors within the same channel. In such cases, manufacturers are reluctant to take part in the channels to protect their businesses and minimize risk.

5 0
3 years ago
Other questions:
  • Sue-Ellen took Charlie's cell phone without his permission because she wanted it. This is an example of distribution by _____ .
    6·2 answers
  • Cathy, the manager of Cathy’s Catering, Inc., uses activity-based costing to compute the costs of her catered parties. Each part
    14·1 answer
  • Opportunity costs refer to:
    10·2 answers
  • On July 22, Peter sold $23,500 of inventory items on credit with the terms 2/15, net 30. Payment on $15,000 sales was received o
    7·1 answer
  • Uhura Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented below in order
    5·1 answer
  • Employees are deterred by the potential loss of certification or professional accrediation resulting from a breach of a code of
    12·1 answer
  • g dividends paid 13500. what was the net income for the past year of the firm faces a tax rate of 30%
    11·1 answer
  • Give three reasons why building apps might not be the sole source of income for an individual.
    10·1 answer
  • Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available information follows
    8·1 answer
  • Can I Plss get some help on this
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!