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arsen [322]
3 years ago
6

On January 1, 2021, a company signs a 25-year lease for land. Annual payments of $20,000 begin on December 31, 2021. The company

’s normal borrowing rate is 6%. For what amount would the company record the lease on January 1, 2021 (rounded to nearest whole dollar)? Use (PV of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors.)
Business
1 answer:
Law Incorporation [45]3 years ago
8 0

Answer:

Equipment 255,667 debit

  Lease Liability 255,667 credit

Explanation:

The company will post the equiptment int accounting as the same value of the discounted lease payment.

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\  

C 20,000

time 25

rate 0.06

20000 \times \frac{1-(1+0.06)^{-25} }{0.06} = PV\\  

PV $255,667.1232

On each year-end the company will recognize the interest expense and the payment of 20,000 dollars

By the end of the lease, there will be no lease liability as all payment were made

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The average cost per seat on the 75-passenger Get-There-Safe Bus company's trip from Milwaukee to Minneapolis, on which no refre
dezoksy [38]

Answer:

The answer is by charging lower price on remaining three ticket (any ticket price above $0)

Explanation:

As company is not giving any refreshment so it not incurring any variable cost. So here sales is equal to contibution and every single dollar revenue generated is a contribtion towards fixed cost and targeted profit. So by decreasing sale price on remaining tickets company will be able to sell them and this sale will result in more profit to the company.

8 0
3 years ago
Suppose you used the Copy and then the Paste command to copy the contents of cells A1 to cell B1,
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Answer:

Click paste without formatting

Explanation:

3 0
3 years ago
Kevin bought 300 shares of Intel stock on January 1, 2019, for $90 per share, with a brokerage fee of $200. Then, Kevin sells al
DiKsa [7]

Answer:

$27,200

Explanation:

The adjusted basis is the value given to an asset (and used by the IRS) when you have to determine any capital gain or loss resulting from its sale. It should generally be the original cost of purchasing that asset.

Kevin's basis = (300 shares x $90 per share) + $200 in sales commission

Kevin's basis = $27,000 + $200 = $27,200

Hope This Helps! :D

4 0
2 years ago
If a CPA who is a member of the AICPA fails to abide by the Principles section of the AICPA’s Code of Professional Conduct, but
Alborosie

Answer:

The correct answer is D. Not subject to any form of punishment regarding the license to practice accounting

Explanation:

The accounting professional should use their professional judgment to make their decisions, consult a guide such as the Code of Conduct, give some guidelines on what is the correct behavior, to apply the rules and reach correct conclusions.

However, when the professional acts fraudulently, he will be responsible to the competent authorities. When it does not follow the guidelines but still acts under the law, it cannot be sanctioned.

7 0
2 years ago
Determiniing decision makers' information needs, acquiring the needed information, and distributing that information to the deci
bulgar [2K]

Answer:

The Role of Marketing information systems

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<em>The marketing information system is the collection, sort, interpretation, storage and distribution of the market informaiton in order to improve the planning, decision making and control of the marketers from both internal and external sources.</em>

I hope you find this information useful and interesting! Good luck!

6 0
2 years ago
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