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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

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Teresa has a contract to teach eighth grade at Washington Middle School. She decided she could make more money writing a book, s
kari74 [83]

Answer:

The duties under the teaching contract cannot be delegated

Explanation:

The person wit whom the school has a binding agreement was Teresa and contract of services cannot be delegated unilaterally by Teresa to her friend Shirley without consulting the school authority.

The appropriate procedure would be for Teresa to discuss with the school her plans to let Teresa to cover up for her absence,however, if the school accepts the new arrangement , Teresa would need to be relieved of her duties as this would be a permanent substitution.

8 0
3 years ago
Malone Imports stock should return 12 percent in a boom, 10 percent in a normal economy, and 2 percent in a recession. The proba
Rufina [12.5K]

Answer:

6.11%

Explanation:

For computing the variance, first we have to determine the expected return which is shown below:

= (Expected return of the boom × weightage of boom) + (expected return of the normal economy × weightage of normal economy)  + (expected return of the recession × weightage of recession)

= (12% × 5%) + (10% × 85%)  + (2% × 10%)  

= 0.6% + 8.5% + 0.2%

= 9.30%

Now the variance would equal to the

= Weightage × (Return - Expected Return) ^2

For boom:

= 5% × (12% - 9.3%) ^2

= 0.3645

For normal economy:

= 85% × (10% - 9.3%) ^2

= 0.4165

For recession:

= 10% × (2% - 9.3%) ^2

= 5.329

So, the total variance would be

= 0.3645 + 0.4165 + 5.329

= 6.11%

4 0
3 years ago
To record a customer's check in full payment for a sale that was made the prior month, the company should debit the ____________
bearhunter [10]

To record a customer's check in full payment for a sale that was made the prior month, the company should debit the payable cash account.

<h3>Payable cash account</h3>

Based on the information given the appropriate journal entry to record a customer's check in full payment for a sale is:

Journal entry

Debit Payable Cash account

Credit Sales accounts

(To record customer's check in full payment)

Inconclusion to record a customer's check in full payment for a sale that was made the prior month, the company should debit the payable cash account.

Learn more about payable cash account here:brainly.com/question/4656883

6 0
2 years ago
In the job performance formula Performance=M+A+E, what does M stand for?
Illusion [34]

<u>Answer: </u>Motivation

<u>Explanation:</u>

In the job performance formula M stands for motivation, A for Ability and skills E for Environmental obstacles. When the company's performance is stable over time because of the employee's performance then the employee's will be rewarded with huge incentives.

This model where Performance=M+A+E it denotes that the compensation benefits does not change the employee behavior towards his performance . Only these three factors determine his performance behavior. When these three factors are not met in enough then it reflects in inefficient performance of the employee.

8 0
3 years ago
With a lifestyle, people select products and services that fulfill their diverse needs and interests, rather than conforming to
Alinara [238K]

The lifestyle, which has enabled people to select products and services to meet their different needs without the traditional conformity to stereotypes, is<em> known as </em><em>component lifestyle</em>.

  • Consumers' free choices are not based on military lifestyle, which is restricted to the military personnel.

  • Free choice is not a factor of career lifestyle, which has more to do with the availability of resources.

  • Consumers' free choices are not a result of fad lifestyle, which refers to the general conformity of the population to a particular style.

Thus, the only lifestyle, which has enabled people to select products and services to meet their specific needs and interests, is component lifestyle.

Read more about lifestyles at brainly.com/question/12065546

6 0
3 years ago
Read 2 more answers
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