<span>The determinant that causing the shift is resource cost or availability.
New sources means that the companies in relevant sectors could obtain more raw silicon materials at the cheaper price.
This will lead to lower price of products offered in the market and resuled in higher amount demand of products that use the material.</span>
Answer:
The correct answer is "2,40,000". The further explanation is given below.
Explanation:
The given fair value is:
= $240,000
The presentation in books of lessee will be:
⇒ 
⇒ 
On putting the values, we get
⇒ 
⇒ 
⇒ 
($)
Presentation in books of Lessor
, the fair value of assets will be
= 
($)
The total cost of the lone will be lower
Answer:
15%
Explanation:
The formula to compute the accounting rate of return is shown below:
= Annual net income ÷ average investment
where,
Annual net income would be
= Annual revenues - annual expenses
= $68,950 - $40,000
= $28,950
And, the average investment would be
= (Initial investment + salvage value) ÷ 2
= ($310,000 + $76,000) ÷ 2
= $386,000 ÷ 2
= $193,000
Now put these values to the above formula
So, the rate would equal to
= $28,950 ÷ $193,000
= 15%
