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
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

You might be interested in
On January 2, 2019, Adelphi Company purchased a patent for $175,000 plus $5,000 in legal fees. On that date, the patent had a re
Vikentia [17]

Answer:

$22,500

Explanation:

Data given in the question

Purchase value of the patent = $175,000

Legal fees = $5,000

The Remaining life of the patent = 13 years

Expected using life of the patent = 8 years

So by considering the above information, the annual amortization expense for 2019 is

= (Purchase value of the patent + Legal fees incurred) ÷ (Expected using life of the patent)

= ($175,000 + $5,000) ÷ (8 years)

= $22,500

7 0
3 years ago
How can you employ one of the most powerful interactive business tools on the<br> Internet today?
topjm [15]

Answer:

<em>Online shopping one of the most powerful interactive business tools on the Internet today.</em>

Explanation:

Today on internet most powerful interactive business tools is online marketing and shopping. The products and goods and services are easily available on internet and just with the help of delivery person anything can be easily delivered to the doorstep.

There are many intermediaries attached to this business and hence making it super profitable. Therefore, b to c business is on a boom these days and the customers needs are satisfied just sitting at home.

8 0
3 years ago
Read 2 more answers
Review Key Concepts
notsponge [240]

Explanation:

1. Because marketing of goods must comply with current marketing practices. Trends and consumer perceptions must be maintained. It is important.

This refers to the acquisition, distribution, and marketing of goods, services or trademarks, such as advertisement and market analysis, and the production of the products for customers or end-users.

2. An example of an economic good and an economic service :

Economic goods: cars, furniture, television, and clothing

Economic services: cooking a hamburger, cutting hair

3 0
3 years ago
For which of the following categories of employees are performance improvement measures like withholding pay increases, demotion
Darina [25.2K]

Answer: C

Explanation: The deadwood employee is the one who habitually does the minimum amount to get by, often blaming others or the “system” when there are problems. They may have ‘retired on the job,’ or lost motivation to work, like spreading gossip and rumours somas not to put in the required energy to work or they are just generaaly lazy folks.

8 0
3 years ago
Read 2 more answers
On December 31, 2017, Extreme Fitness has adjusted balances of $870,000 in Accounts Receivable and $69,000 in Allowance for Doub
kondaur [170]

Answer: The amount the company would report as its net accounts receivable at 31 December 2017 is $801,000.

Explanation: Net accounts receivable is the recoverable amount of receivable after considering the amount that is deemed to be uncollectible. It is accounts receivable balance minus the allowance for doubtful accounts.

In the instance of this question, the net accounts receivable was initially $801,000 ($870,000 - $69,000). Now that management approved a write-off of $17,000, the implication is that the write-off would hit allowance for doubtful account (since there is a buffer in that account instead of bad debt expense), and the necessary accounting entries to be recorded would be: <em>Debit Allowance for doubtful accounts $17,000; Credit Accounts Receivable $17,000. </em>With these entries, both accounts receivable and the allowance for doubtful accounts would be reduced by the same account. Consequently, the net accounts receivable remains the same but the individual balances in accounts receivable and allowance for doubtful account would now be $853,000 ($870,000 - $17,000) and $52,000 ($69,000 - $17,000).

5 0
3 years ago
Other questions:
  • Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the
    15·1 answer
  • An employer has the right to monitor workers electronic communications if
    11·1 answer
  • Identificar y describir 3 características de los períodos contables
    11·1 answer
  • An investment advisory firm does its own research, using a group of dedicated employees and has a separate staff of investment a
    5·1 answer
  • Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $1,800 of dir
    10·1 answer
  • Which account has the lowest minimum balance requirement? Bank Account Terms and Conditions Account A Account B Account C Accoun
    13·2 answers
  • Which of the following statements is TRUE?
    9·1 answer
  • Meyer &amp; Smith is a full-service technology company. They provide equipment, installation services as well as training. Custo
    9·1 answer
  • A motor vehicle sold on credit to C. Kelly will require which of the following entries:
    9·1 answer
  • What does economic problem mean?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!