Answer:
Joint venture
Explanation:
A joint venture can be defined as a business arrangement in which two parties come together to achieve a purpose by combining resources of both parties.
A joint venture involves joint ownership of the business.
A joint venture is good because it helps with sharing of liabilities with a partner, access to knowledge, etc.
Cheers
Answer:
Point B
Explanation:
A "trough" in essence is just like a dip or a ditch. The answer is B because it is at the lowest point of that dip.
Answer:
She needs $150,000 to fund this perpetuity.
Explanation:
In this question we need to find the present value of this perpetuity. Because this is a growing perpetuity we will need to use the formula of present value of a growing perpetuity.
PV of growing perpetuity = Payment/ R-G
The payment is the current payment the perpetuity will pay which is 6,000, R is the interest rate which is 10% and G is the growth rate of the perpetuity which is 6%. Now we will input these values in the formula in order to find the present value of the perpetuity.
6,000/0.1-0.06
=6,000/0.04
=150,000
Answer:
Part 1
Dr Lease rentals $300........ Expense
Cr Cash Account $300
Part 2
Dr Leased Equipment $63,536
Cr Finance Lease Liability $63,536
Explanation:
Part 1. Under the operating leases the lessee pays the monthly rentals which must be accounted for as an expense and the double entry is as under:
Dr Lease rentals $300........ Expense
Cr Cash Account $300
Part 2. Under the finance lease agreement, the lessee pays the value of the asset and the interest as well. So after the date of agreement when the asset is handed over the journal entry would be recording of the equipment received, which would written at its fair value or present value of the payments made. The journal entry would be:
Dr Leased Equipment $63,536
Cr Finance Lease Liability $63,536
Answer:
c. $7,500 ordinary gain
Explanation:
Depreciated value of Machine = $55,000 - $12,500
= $ 42,500
Sale price of Machine = $ 50,000
Gain on sale of Asset = $ 50,000 - $ 42,500
= $ 7,500
Therefore, The amount and character of Butte's gain or loss is $7,500 ordinary gain.
