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kirza4 [7]
3 years ago
8

Calloway Company recorded a right-of-use asset of $790,000 in a 10-year finance lease. The interest rate charged by the lessor w

as 10%. The balance in the right-of-use asset after two years will be:
Business
1 answer:
enot [183]3 years ago
5 0

Answer:

$632,000

Explanation:

The computation of the amount of balance in the right of use asset after two years is shown below:

Balance in right of use asset after 2 years is

= Recorded value - ((Recorded value × rate of interest) × number of years)

= $790,000 - (($790,000 × 10%) × 2)

= $790,000 - ($79,000 × 2)

= $790,000 - $158,000

= $632,000

hence, the balance is $632,000

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If an organization does not develop programs in-house, then the development group of the information system (IS) department will
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Answer:

C) Business and systems analysts

Explanation:

Business and systems analysts primarily work with users, operations, and vendors to acquire and install licensed software and to set up the system components around that software.

They can be found in the information system (IS) department of an organization.

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3 years ago
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A company is considering constructing a plant to manufacture a proposed new product. The land costs ​$​, the building costs ​$​,
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Complete question :

A company is considering constructing a plant to manufacture a proposed new product. The land costs $350,000, the building costs $600,000, the equipment costs $250,000, and $150,000 additional working capital is required. It is expected that the product will result in sales of $900,000 per year for 10 years, at which time the land can be sold for $450,000, the building for $400,000, and the equipment for $50,000. All of the working capital would be recovered at the EOY 10. The annual expenses for labor, materials, and all other items are estimated to total $500,000. If the company requires a MARR of 15% per year on projects of comparable risk, determine if it should invest in the new product line. Use the AW method.

Answer: $182,800

Explanation:

Given the following :

land costs = $350,000

building costs = $600,000

equipment costs = $250,000

additional working capital = $150,000

Expected sales per year for 10 years = $900,000

Salvage value After (10years):

Cost of land = $450,000

Building = $400,000

Equipment = $50,000

All working capital will be recovered at end of year, Hence, working capital will be $150,000

Annual expenses = $500,000

MARR = 15% per annum

Total amount invested = $(350,000 + 600,000 + 250,000 + 150,000) = $1,350,000

Expected sales per Annum = annual revenue = $900,000

Expenditure per year = $500,000

Net income = Revenue - Expenditure

Net income = $900,000 - $500,000 = $400,000

Worth or valuation of investment after 10 years :

($450,000 + $50,000 + $400,000 + $150,000)

= $1,050,000

Hence,

Capital recovery factor : (A/P, 15%, 10) = 0.199

Sinking fund table : (A/F, 15%, 10) =0.049

NET ANNUAL WORTH :

-Initial investment(A/P, 15%, 10) + annual net income + salvage value(A/F, 15%,10)

= - 1,350,000(0.199) + 400,000 + 1,050,000(0.049)

= $182,800

The investment is economically justified as the net annual worth yields a positive value.

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3 years ago
When both parties to a contract are mistaken as to the same material fact either paarty can rescind the contract?
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I took this question already, so if it was 
<span>
Often, when both parties to a contract are mistaken as to the same material fact, either party can rescind the contract.

It would be "True"

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Advertisements that feature promotions such as buy-one-get-one-free offers essentially signal that customers will get value in s
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The answer to the blank space is discriminative stimuli.

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Answer:

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Explanation:

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