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Papessa [141]
3 years ago
12

On January 1, Company A leased equipment for a six-year period. Annual lease payments are $12,000 due on December 31 of each yea

r. The payments are calculated by the lessor using a 6% discount rate. If Company A's revenues exceed a specified amount during the lease term, Company A will pay an additional $5,000 lease payment at the end of the lease. Company A estimates a 60% probability of meeting the target revenue amount. What amount should be recorded as the right-of-use asset and lease liability under the contingent rent agreement
Business
1 answer:
raketka [301]3 years ago
3 0

Answer:

Dr Right of use asset 59,007.60

    Cr Lease liability 59,007.60

Explanation:

Variable lease payments are generally not included as right of use asset or lease liability. Even though a 60% possibility exists that an additional $5,000 will be paid, they are not based on an index and are not disguised payments (only two exceptions to this rule).

Annual lease payments = $12,000

PV annuity factor, 6%, 6 periods = 4.9173

PV of lease payments = $12,000 x 4.9173 = $59,007.60

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ludmilkaskok [199]

Answer:

Check attachment for explanation

5 0
3 years ago
The revenue, in millionsmillions of dollars, for a company in year tt is given by the function: r(t)=15e0.19t,0≤t≤15 r(t)=15e0.1
Maslowich
The net profit of the company in this case is given by the subtraction of the income minus the costs.
 We have then:
 b (t) = r (t) - c (t)
 b (t) = 15 * e ^ (0.19 * t) - 12 * e ^ (- 0.03 * t).
 We must determine the number of years.
 from january 1st in the year 2000 until january 1st in the year 2007:
 t = 2007-2000 = 7.
 We have then evaluating t = 7 in the function:
 b (7) = 15 * e ^ (0.19 * 7) - 12 * e ^ (- 0.03 * 7).
 b (7) = 46.99 millions of dollars
 answer:
 the net profit was 46.99 millions of dollars
5 0
2 years ago
The form of billboard advertising regularly seen alongside highways and in other heavily traveled locales is _____.
avanturin [10]

Poster Panels is the correct answer.

An outdoor structure having a standardized size surface on which advertising posters may be posted.

"Poster panel" or ”billboard” means a sign, generally known as outdoor advertising, mounted on a permanent or semi-permanent structure and depicting information not directly related to the property upon which it is placed. Except where a specific distinction is drawn, the term “billboard” includes “poster panel".

Poster panel means a single or double faced non-accessory sign which is used for the display of a message produced on sheet paper and applied to the sign face or painted directly onto the sign face.

            Learn more about Poster Panel or Billboard on

             https://brainly.in/question/43957493

            #SPJ4

6 0
2 years ago
Jim's Espresso expects sales to grow by 10.3 % next year. Using the following statements and the percent of sales​ method, forec
stepladder [879]

Answer:

Jim's Espresso

The forecasted costs will be :___________

a. Costs                = $110,168

b. Depreciation    = $6,575

c. Net Income      = $70,482

d. Cash                = $16,600

e. Accounts receivable  = $2,283

f. Inventory          = $4,511

g.​ Property, plant, and equipment = $11,085

Explanation:

a) Data and Calculations:

Sales growth = 10.3%

Balance Sheet

Assets                                                         Percentage of sales

                                                                   Current      Forecast

Cash and Equivalents              $15,050     0.07357    $16,600

Accounts Receivable                    2070     0.01012         2,283

Inventories                                    4090     0.01999         4,511

Total Current Assets                $21,210      

Property, Plant and Equipment 10,050     0.04913        11,085

Total Assets                             $31,260

Liabilities and Equity:

Accounts Payable                     $1,580

Debt                                             3930

Total Liabilities                         $5,510

Stockholders' Equity               25750

Total Liabilities and Equity   $31,260

Income Statement:              Current      %              Forecast

                                               Year

Sales                                 $204,560      1              $225,630

Costs Except Depreciation (99,880)     0.48827     (110,168)

EBITDA                              $104,680      0.51173

Depreciation                         (5,960)     0.02914        (6,575)

EBIT                                    $98,720      0.48260

Interest Expense (net)              (410)     0.00200

Pretax Income                    $98,310      0.48059

Income Tax                         (34,409)     0.16821

Net Income                        $63,901      0.31238       $70,482

The forecasts are based on sales of the current year and the next year.

5 0
2 years ago
At the initial equilibrium value of money and price level, the quantity of money supplied is nowless than the quantity of money
tiny-mole [99]
The value of money will FALL
5 0
3 years ago
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