Art bought 25/50/100

Beneficiary is one who unintentionally gains a benefit from a contract between other parties

son4ous [18]

The answer is "incidental beneficiary".

An incidental beneficiary refers to somebody who indirectly acquires an advantage as the aftereffect of the fundamental reason for the trust. An incidental beneficiary is a recipient who isn't a planned recipient. For instance, a grandchild may profit by his/her parent accepting a blessing which could be utilized by the whole family, or which he/she may acquire from the parent.

6 0

3 years ago

Steel Company as lessee signed a lease agreement for equipment for 5 years, beginning December 31, 2017. Annual rental payments

balu736 [363]

Answer:

a.

Debit Credit

December 31, 2017

Lease Equipment Under Capital Leases $166,794

Lease Liability $166,794

December 31, 2017/January 1, 2018

Lease Liability $40,000

Cash $40,000

b. Debit Credit

December 31, 2018

Depreciation Expense $23,828

Accumulated Depreciation $23,828

December 31, 2018/January 1, 2019

Interest Expense $12,679

Lease Liability $27,321

Cash $40,000

c. Debit Credit

December 31, 2019

Depreciation Expense $23,828

Accumulated Depreciation $23,828

December 31, 2019/January 1, 2020

Interest Expense $9,947

Lease Liability $30,053

Cash $40,000

d. Balance Sheet

December 31,2019

Property Plant and Equipment Current Liabilities

Leased Equipment Under Capital Leases $166,794 Lease Liability $33,058

Less Accumulated Depreciation $47,656

$119,138 Long Term

Lease Liability $36,362

Explanation:

a. The journal entries, that should be recorded on January 1, and December 31, 2017, by Steel would be as follows:

Debit Credit

December 31, 2017

Lease Equipment Under Capital Leases $166,794

Lease Liability $166,794

December 31, 2017/January 1, 2018

Lease Liability $40,000

Cash $40,000

Lease Equipment Under Capital Leases=(40,000*PVIFA(10%,Years = 40,000*4.16986))= $166,794

b. The journal entries, that should be recorded on January 1 and December 31, 2018, by Steel would be as follows:

Debit Credit

December 31, 2018

Depreciation Expense $23,828

Accumulated Depreciation $23,828

December 31, 2018/January 1, 2019

Interest Expense $12,679

Lease Liability $27,321

Cash $40,000

Depreciation Expense= (166,794/7)=$23,828

Interest Expense [(166,794 - 40,000)*10%]=$12,679

Lease Liability=(40,000 - 12,679)=$27,321

c. The journal entries, that should be recorded on January 1, and December 31, 2019, by Steel would be as follows:

Debit Credit

December 31, 2019

Depreciation Expense $23,828

Accumulated Depreciation $23,828

December 31, 2019/January 1, 2020

Interest Expense $9,947

Lease Liability $30,053

Cash $40,000

d. The amounts that would appear on Steel's December 31, 2019, balance sheet relative to the lease arrangement would be as follows:

Balance Sheet

December 31,2019

Property Plant and Equipment Current Liabilities

Leased Equipment Under Capital Leases $166,794 Lease Liability $33,058

Less Accumulated Depreciation $47,656

$119,138 Long Term

Lease Liability $36,362

8 0

4 years ago

Assume that the marginal propensity to consume is 0.8 and that potential output is $800 billion. If real GDP is $850 billion, to

kari74 [83]

The following policies would bring the economy to potential output is Decrease government spending by $10 billion.

<h3>What is Marginal Propensity?</h3>

The "Marginal Propensity" to consume is defined as calculate quantification of money that consumers are ready to spend.

The term "Marginal propensity" to consume is term used in economics. It measures monetary value which consumer is willing to spend to buy goods and services instead of saving it.

The "Marginal Propensity" to consume tends to increase economic activities of country by keeping cash flowing and by not keeping it stagnant. It also helps in increasing trade value and quality and cost of products because it increases healthy competition among companies and in which consumers are ultimately benefitted.

Therefore , we can conclude that the correct option is C.

Learn more about Marginal propensity on:

brainly.com/question/17930875

#SPJ4

7 0

2 years ago

Jake Werkheiser decides to invest $5000 in an IRA at the end of each year for the next 12 years. If he makes these investments,

Oxana [17]

Answer:

Jake Werkheiser will have $170,322.48 at the end of 12 years.

Explanation:

We use the following formula to find the future value,

$S=R[\frac{(1+i)^n-1}{i}](1+i)$

S= future value

R= yearly payment =$5000

i= rate of interest = 9%=0.09

n =time =12 years.

Now putting the value of i, n, R

$S=5000[\frac{(1+0.09)^{12}-1}{0.09}](1+0.09)$

=$170,322.48

Jake Werkheiser will have $170,322.48 at the end of 12 years.

5 0

3 years ago

Scenario: you work for an investment banking firm and have been asked by management of vestor corporation (not real), a software

Bas_tet [7]

Total capital = 10 + 8 + 2 = 20 Million

Weight of bonds (Wd) = 10/20 = 0.5

Weight of preferred stock(Wp) = 2/20 = 0.1

Weight of stock equity(We) = 8/20 = 0.4

Cost of debt = YTM of the bonds issued (We assume its annual coupon)

YTM =rate(nper,pmt,pv,fv) in excel =rate(20,60,-950,1000) = 6.4521%

Cost of debt after tax(Rd) = 6.4521*(1-0.34) = 4.2584%

Cost of preferred shares (Rp) = Preferred dividend/ price = 2.5/25 = 0.10 =10%

Cost of equity (Re) = Rf + beta*(Rm-Rf) = 3.5 + 1.2*(13-3.5) =14.9%

WACC = Wd*Rd + Wp*Rp + We& Re

WACC = 0.5*4.2584% +0.1*10% + 0.4*14.9% = 9.089 = 9.09%

3 0

3 years ago