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Naddik [55]
3 years ago
14

On January 1 of the current year, Tell Co. leased equipment from Swill Co. under a 9-year sales-type (finance) lease. The equipm

ent had a cost of $400,000 and an estimated useful life of 15 years. Semiannual lease payments of $44,000 are due every January 1 and July 1. The present value of lease payments at 12% was $505,000, which equals the sales price of the equipment. Using the straight-line method, what amount should Tell recognize as depreciation expense on the equipment in the current year?
Business
1 answer:
Salsk061 [2.6K]3 years ago
7 0

Answer:

The yearly depreciation on the asset is $56,111.11

Explanation:

In calculating the right-of-use asset on a lease,the present of value of future cash payments,that is lease liability amount is added to any lease payments paid on or before commencement of lease agreement,direct initial costs,as well as with any likely amount to be incurred in restoring asset's site or dismantling the asset after usage.

In this case,only present value of future cash flows is available,hence that is the amount of right-of-use to depreciated over nine year period.

Depreciation=$505000/9years

                     =$56111.11

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On January 1, Whispering Winds Corp. had 62,600 shares of no-par common stock issued and outstanding. The stock has a stated val
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Answer:

Explanation:

The journal entries are shown below:

1. Cash Dividend A/c Dr $122,838                       (62,600 + 16,650) × $1.55

        To Dividend payable A/c  $122,838

(Being the dividend is declared)

2. Dividend payable A/c $122,838

       To Cash A/c $122,838

(Being the dividend is paid)

3.  Cash Dividend A/c  Dr $142,97    (62,600 + 16,650 + 7,400) × $1.65

              To Dividend payable A/c $142,973

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3 years ago
On April 30, Gomez Services had an Accounts Receivable balance of $31,200. During the month of May, total credits to Accounts Re
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Answer:

What was the amount of credit sales during May? $ 60200

Explanation:

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Account receivable 31200          66400 25000

                                31200 60200 66400 25000

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3 years ago
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Answer:

Socially responsible business

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It reduces waste and promotes recicling

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Transfer is defined as moving or shifting from one person, location, or circumstance to another to cause anything to be passed from one to another convey modify, alter.

<h3>What is purpose of transfer?</h3>

Employees may be transferred to jobs where they will likely be more effective or experience higher levels of job satisfaction. No changes are made to the role, title, status, or pay during transfers. It is a process of the employee adjusting to the job, the time, and the location.

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