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
Eduardwww [97]
3 years ago
7

On January 1, 2021, Sauder Corporation signed a five-year noncancelable lease for equipment. The terms of the lease called for S

auder to make annual payments of $200,000 at the beginning of each year for five years beginning on January 1, 2021 with the title passing to Sauder at the end of this period. The equipment has an estimated useful life of 7 years and no salvage value. Sauder uses the straight-line method of depreciation for all of its fixed assets. Sauder accordingly accounts for this lease transaction as a finance lease. The lease payments were determined to have a present value of $833,972 at an effective interest rate of 10%.
In 2022, Sauder should record interest expense of:

a. $43,397.
b. $49,737.
c. $69,737.
d. $63,397.
Business
1 answer:
Minchanka [31]3 years ago
6 0

Answer:

d. $63397

Explanation:

Principal outstanding after first payment at beginning of Jan 1 2021 =

833972 -200000 (does not include interest as first payment made at beginning)

=  633972

interest expense = 633972 *.10 = $ 63397.20

You might be interested in
Which of the following would shift the supply of dollars in the market for foreign-currency exchange of the open-economy macroec
avanturin [10]

Answer:

b. The expected rate of return on U.S. assets rises

Explanation:

  • An open economy is one that interacts freely with the other economies of the world, the one economy of the united states is very large and includes the imports and exports of huge quantity including the goods and services.
  • In an open economy, macroeconomic model assets are bought and supplied to the economy a this creating an outflow of the capital as more of the buying of the assets creates a net capital outflow leading to an increase of the expected rate of return of assets. As the country can spend more than it produces.
7 0
3 years ago
Craydye Corporation manufactures a part for its production cycle. The costs per unit for 8,000 units of this part are as follows
irakobra [83]

Answer:

Make; $72,000

Working:

Make ($106*8000)                         848,000

Buy [($120*8000 - 40,000)]           920,000

Make increases profits by              72,000

7 0
3 years ago
Read 2 more answers
In the short run, a profit-maximizing monopolistically competitive firm sets it price: A) equal to marginal revenue. B) equal to
Taya2010 [7]

In the short run, a profit-maximizing monopolistically competitive firm sets it price: above marginal cost. Option C. This is further explained below.

<h3>What is marginal cost?</h3>

Generally,  The marginal cost of production is the incremental cost incurred to produce one more unit of a good or service.

In conclusion, Initially, a monopolistically competitive business sets its price at a level above its marginal cost in order to maximize its profits.

Read more about marginal cost

brainly.com/question/7781429

#SPJ1

3 0
2 years ago
As the manager of a food store, your friend is trying to come up with ways of increasing sales of items that have a high profit
rewona [7]

Answer:

The correct answer is There will be no real change in the sales of those subliminally advertised items.

Explanation:

Subliminal advertising is one whose message is transmitted below the threshold of consciousness, whether using images, sounds or other techniques that are not readily noticeable. The objective of this type of advertising is to influence the wishes of consumers by generating impulses and needs that encourage them to buy or perform a certain marketing action, but without being aware of that influence.

3 0
3 years ago
Ace Inc. has 10,000 shares of 5%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outs
REY [17]

Answer:

b. $50,000 in total

Explanation:

Preference shareholders: The preference shareholders are that shareholders who receive the divided before equity shareholders

The computation of the annual dividend is shown below:

= Number of shares × price per share × rate

= 10,000 shares × $100 × 5%

= $50,000

The annual dividend for preference shareholders will be computed by applying the number of shares, the price per share, and the rate.

5 0
3 years ago
Other questions:
  • Decide which account is best for each person. Becky wants an account that will let her spend her money as much and as often as s
    12·2 answers
  • When team members experience conflict because they are trying to make sense of competing ideas about how the team should work, t
    11·1 answer
  • This private, not-for-profit organization is committed to developing and maintaining practical, customer-focused standards to he
    8·1 answer
  • A client demands the return of all records and documents from an attorney even though the client has not paid the attorney's fee
    10·1 answer
  • Prior to June 30, a company has never had any treasury stock transactions. A company repurchased 100 shares of its $1 par common
    8·1 answer
  • When a seller breaches a sales contract, the Uniform Commercial Code (UCC) provides the buyer with an option to take immediate s
    11·1 answer
  • Suppose a large country experiences economic growth which results in a reduced willingness to trade. The country’s terms of trad
    14·1 answer
  • Producers must understand the marginal benefit of making an additional unit. True or False
    15·2 answers
  • Gross domestic product per person refers to: the total GDP divided by the population of the country. the nominal per capita GDP
    5·1 answer
  • what are the economic factors influencing the communication industry as a whole and how does this impact the economic base​
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!