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Semenov [28]
3 years ago
5

All of the following statements regarding leases are true except : A. For a capital lease the lessee records the leased item as

its own asset. B. Capital leases do not transfer ownership of the asset under the lease, but operating leases often do. C. Capital leases create a long-term liability on the balance sheet, but operating leases do not. D. For a capital lease the lessee depreciates the asset acquired under the lease, but for an operating lease the lessee does not. E. For an operating lease the lessee reports the lease payments as rental expense.
Business
1 answer:
faust18 [17]3 years ago
5 0

Answer: B. Capital leases do not transfer ownership of the asset under the lease, but operating leases often do.

Explanation:

When using Capital Leases, the lessee will record the lease as if it were their own asset and as a result will also depreciate it. The lessee will also create a long term liability on their balance sheet for the asset.

Capital leases usually also involve a transfer of ownership to the lessee at the end of the lease term. Operating Leases on the other hand do not have these features. They are more like a rental of an asset and as such are recorded as a rental expense in the books of the lessee. The ownership remains with the lessor in an Operating Lease and the asset will be returned once the lease period is over.

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Which is a disadvantage of having a traditional economy?
saul85 [17]
The best and most correct answer among the choices provided by your question is the second choice or letter B. A lower standard of living one of the disadvantages of having a traditional economy.

Traditional economy is an original economic system in which traditions, customs, and beliefs shape the goods and the services the economy produces, as well as the rules and manner of their distribution. Countries that use this type of economic<span> system are often rural and farm-based.
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I hope my answer has come to your help. Thank you for posting your question here in Brainly.



7 0
3 years ago
Read 2 more answers
A study is designed to evaluate how an employee reacts to interruptions when attempting to answer his/her email. After several i
hammer [34]

Answer:

participant perceives deviations but unrelated to researcher

Explanation:

In the case when the study is designed in order to evaluate how an employee reaction for interrupt at the time when an employee attempt to answer his or her email. After various interruption, the design should represent that there is a the participant that perceives the deviation but it is not related to the researcher as the changes responses via participants attach with the deviations

Therefore as per the given situation, the above represent the answer

4 0
3 years ago
What are some reasons why the budget deficit and non budgeted spending have been adding more than $500 billion to the national d
bogdanovich [222]
There are numerous reasons, things like war, immigration, increased poverty, or things like unpredictable natural disasters. When a hurricane strikes and destroys entire cities and housing it has to be fixed quickly and that is spending that was not planned since you can't expect things like that. Wars often cost much more than what was planned because bad things happen and they need to be fixed. Immigration can lead to an increase in social welfare spending since not all immigrants find a job quickly and establish themselves in the society.
6 0
3 years ago
Explain why a relative price is an opportunity cost. The money price of a pound of bananas is $0. 90 and the money price of a tu
dimaraw [331]

The opportunity cost is stated in relative pricing, that is, the price of one option in comparison to another.

When there are numerous vendors in a market but no one is significant enough to control the price of a product. Because both items must be produced, the relative price must match the opportunity cost. If the opportunity cost of one good is lower in the home country than so will be the relative price.

As bananas cost $0.90 per kg, so, if  a toothpaste is  for $2.25, we are forgoing 2.25 kgs banana (2.25/0.9). Thus, the opportunity cost is 2.5 kg bananas which is equal to the relative price of bananas.

Therefore, relative price is an opportunity cost.

To know more about relative price click here:

brainly.com/question/14187254

#SPJ4

6 0
1 year ago
The following information relates to the assets of Westfield Semiconductors as of December 31, 2019. Westfield uses the straight
Salsk061 [2.6K]

Answer:

See the explanation below.

Explanation:

Given the following:

Asset    Acquisition-Cost   Expected-Life    Residual-Value   Time-Used

Land        $104,300                 Infinite               $100,000            10 years

Building     430,000               25 years                30,000             10 years

Machine     285,000                5 years                  10,000              2 years

Patent          80,000                10 years                     0                    3 years

Truck            21,000             100,000 miles           3,000         44,000 miles

Therefore, we have:

Building annual depreciation = ($430,000 - $30,000) / 25 = $16,000

Building net book value (NBV) = $430,000 - (16,000 * 10) = $270,000

Machine annual depreciation = ($285,000 - 10,000) / 10 = $27,500

Machine NBV = $285,000 - ($27,500 * 2) = $230,000

Patent annual amortization = $80,000 / 10 = $8,000

Patent net written down value = $80,000 - ($8,000 * 3) = $56,000

Truck accumulated depreciation = ($21,000 - 3,000) * (44,000 / 100,000) = $7,920

Truck NBV = $21,000 - $7,920 = 13,080

Westfield Semiconductors Balance Sheet (Partial) as of December 31, 2019.

<u>Details                                                             $</u>

Property, plant, and equipment:

Land (Cost)                                                104,300

Building (NBV)                                          270,000

Machine (NBV)                                         230,000

Truck (NBV)                                             <u>    13,080</u>

Total PPM                                                  617,380

Intangible assets:

Patent (NRV)                                              <u> 56,000</u>

Total tangible and intangible assets    <u> 673,380</u>

4 0
3 years ago
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