Answer:
The section of the Accounting Standards Codification that best helps Michael Co. to determine how the initial proceeds of $800,000 received from Wei Co. (buyer-lessor) are recognized is:
ASC 606.
Explanation:
This section that will help Michael Co. to determine if the transaction qualifies as a sale, which is treated under ASC 606, Revenues from Contracts with Customers. Thereafter, the lease classification criteria in ASC 842 are evaluated. After the evaluation, if none of the criteria from ASC 842 are met to account for the lease as a finance or capital lease, the seller-lessee would classify the lease as an operating lease. This implies that the transaction qualifies as a sale and leaseback transaction.
Answer:
$190,494.01
Explanation:
The calculation of net present value is given below:-
Perpetual cash flow $435,000
Less: Cash cost $310,000
Earning before interest
and tax $125,000
($435,000 - $310,000)
Less: Interest on debt $18,250
($250,000 × 7.3%)
Earning before tax $106,750
($125,000 - $18,250)
Less: Tax $37,362.50
($106,750 × 35%)
Net Income $69,387.50
($106,750 - $37,362.50)
Present value $415,494.01
($69,387.50 ÷ 16.7%)
Less: Initial cost $225,000
($475,000 - $250,000)
Net present value $190,494.01
( $415,494.01 - $225,000)
Answer:
Option b: Digital Rights Management
Explanation:
Digital Rights Management (DRM) are simply set of technologies that powers or control the access and use of digital works. Usually, the technology is in form of some sort of digital code. It is the application of control technologies to reduce digital media usage.
A.
Reward incentives should be motivating in order to motivate the subject to perform a task effectively and efficiently.
