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fiasKO [112]
3 years ago
13

Refer to the following lease amortization schedule. The five payments are made annually starting with the inception of the lease

. A $2,000 bargin purchase option is exercisable at the end of the five-year lease. The asset has an expected economic life of eight years.
Lease Payment Cash Payment Effective Interest Decrease in Balance Balance
34,600
1 8,000 ?? ?? 26,600
2 8,000 2,660 5,340 21,260
3 8,000 2,126 5,874 15,386
4 8,000 1,539 6,461 8,925
5 8,000 ?? ?? ??
6 2,000 182 1,818 0
What is the effective annual inerest rate?
A. 9%
B. 10%
C. 11%
D. 20%
Business
1 answer:
Bogdan [553]3 years ago
3 0

Answer:

B. 10%

Explanation:

The computation of the effective annual interest rate is shown below:-

Effective annual interest rate = Lease payment third effective interest ÷ Lease payment second balance × 100

= $2,126 ÷ $21,260 × 100

= 10%

Therefore for computing the effective annual interest rate we simply applied the above formula.

Hence the correct option is B.

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Determine Cost of Land Four Corners Delivery Company acquired an adjacent lot to construct a new warehouse, paying $32,000 and g
ratelena [41]

Answer: $343565

Explanation:

The cost of the land to be reported on the balance sheet goes thus:

Initial cost of land = $32000 + $282000 = $314000

Add: Legal fee = $2465

Add: Deliquescent charges = $11800

Add: Building demolition = $20000

Total = $348265

Less: Material savaged = $4700

Cost of land = $343565

The cost of the land is $343565

8 0
3 years ago
Surveys show that a small increase in the price of one brand of gasoline (e.g. Shell or Irving) will cause most people to switch
tamaranim1 [39]

Answer:

Relative elastic

Explanation:

Elastic demand means that quantity demanded is sensitive to price changes.

A small change in price leads to a greater change in quantity demanded

4 0
3 years ago
Bob, age 17, has entered into a contract to buy a car. The contract is: a. voidable. b. void. c. voidable only if Bob can return
AysviL [449]

Answer:

The correct answer is letter "A": voidable.

Explanation:

Voidable contracts are those that cannot be enforced because one or the two parties involved are not legally eligible to go on in such an agreement. Reasons to void a contract include but are not limited to failure to disclose material facts, legal incapacity to enter a contract or inconsistent contractual terms.

Thus, <em>Bob's contract to purchase a car is voidable since he is legally incapable of signing agreements due to his age (17 years old).</em>

4 0
3 years ago
Ruben is the chief executive officer of a multinational corporation. He manages 15 teams, and the leaders of each team report to
lys-0071 [83]

Answer:

D) bureaucratic control

Explanation:

It seems that in this scenario, Ruben is using bureaucratic control. This term refers to the use of various different rules, policies, authority, documentation, reward systems, and even other formal methods in order to convince and control employee behavior and performance. Which is what Ruben does with his teams of employees by rewarding them if they perform well and taking away their earned leaves if they perform badly.

5 0
3 years ago
Which three report charts show how many Leads are in the Marketing pipeline based on Lead Status and what percent each Lead Stat
fiasKO [112]

Answer: donut chart, funnel chart, pie chart

Explanation:

The options to the question are:

Choose 3 answers

A. donut chart

B. line chart

C. bar chart

D. funnel chart

E. pie chart

The three report charts show how many Leads are in the Marketing pipeline based on Lead Status and what percent each Lead Status represents are the donut chart, the funnel chart and the pie chart.

Donut chart is simply a variation on a pie chart and there's a round hole at the center which can be used to indicate additional data.

The Funnel charts are used to represent the stages that are involved in a sales process and also show the potential revenue that can be made for every stage while the pie chart is a chart that is is divided into portions in order to indicate numerical proportion.

5 0
3 years ago
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