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weeeeeb [17]
2 years ago
10

Crystal corporation makes $2,000 payments every month for leasing office equipment. crystal recorded a lease payment as follows:

Business
1 answer:
Svetlanka [38]2 years ago
4 0
<span>Crystal corporation makes $2,000 payments every month for leasing office equipment. Crystal recorded a lease payment as an operating lease.

An operating lease is a lease that is commonly used for a short term basis and asset. The operating lease payment is found on the financial statement. 
</span>
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If you make a late payment on a 0% interest credit card, you're only responsible for paying the interest from that point on. (pl
Marta_Voda [28]
I mean its a 0 interest creditcard
3 0
3 years ago
Read 2 more answers
A customer, who needs to drive to work in a Wisconsin winter, has a critical need to use the product Ice Melt. For him as a cons
Blizzard [7]

Answer:

Urgency / Postponement leads to customer inelastic demand of ice melt.

Explanation:

Elasticity of demand is responsive change in demand of good, due to change in price. Formula = % change in demand / % change in price

Factors Affecting Price Elasticity of Demand : Nature of commodity, Income, substitutes availability, time period, urgency / postponement, share in total expenditure,

Inelastic Demand is when demand responds proportionately less to price change. % change in demand < % change in price

Case 'Customer critically needs ice melt to drive to work' : This has inelastic demand i.e demand less respondent to price changes (he will buy that at high price too). Such because of the urgency of this demand & less scope of its postponement.

5 0
3 years ago
Adams Corporation's present capital structure, which is also its target capital structure is
kaheart [24]

Answer:

Task a:

The answer is $24,500.

Task b:

The answer is 17%

Explanation:

<h2>Task a:</h2><h3>What is the maximum amount of new capital that can be raised at the LOWEST  component cost of EQUITY?</h3><h3>Solution:</h3>

We already know the following:

Projected net income = $21,000

Payout ratio = 30%

Retention ratio = 70%

Debt share = 40%

Equity share = 60%

Maximum amount of capital to be raised at the lowest component cost of equity = Projected net income ×\frac{Retention ratio}{Equity share}

= $21,000 × \frac{0.70}{0.60}

= $24,500

<h3>Answer:</h3>

The maximum amount of new capital that can be raised at the lowest component of equity is $24,500.

<h2>Task b:</h2><h3>What is the component cost of equity by selling new common stock?</h3><h3>Solution:</h3>

k(e) (component cost of external equity) = [Dividend (D0)(1 + growth) / stock price(1 - flotation cost)] + growth

Formula:

k(e) = \frac{Do(1+g)}{P(1-0.20)} + 0.05

Where

Do = $2.00

G = 0.05

P = $21/88

= ($2.00(1 + 0.05) / $21.88(1-.20)) + 0.05

= ($2.10/$21.88(1-.20)) + 0.05

= ($2.10/$21.88(0.80) + 0.05

= 0.17 or 17%

<h3>Answer: </h3>

The component cost of equity by selling new common stock = 17%

5 0
3 years ago
Who pays the tax does depend on who writes the check to the government?
mina [271]
Who pays the tax does NOT depend on who write the check to the government.
Who pays the check ultimately depend on the elasticity of supply and demand. This is because, suppliers have several ways of passing the taxes levied on them by the government to the consumers in form of increase in price of their products. But this also depend on the elasticity of the products, because if the prices are too high, some customers may decide to buy somewhere else or to go for a substitute.<span />
4 0
3 years ago
Scott Corp. received cash of $20,000 that was included in revenues in its Year 1 financial statements, of which $12,000 will not
Oliga [24]

Answer:

3,000

Explanation:

As the income will be taxed at 25% the income tax liability will be for that amount

12,000 x 25% = 3,000

The tax deferred liability is generated from a temporary difference. The company is paying less income tax today but will pay more in the future. Hence there is a liability.

The accounting reason for this treatment is to match expenses with the time they occur or the revenues which generated.

6 0
3 years ago
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