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OlgaM077 [116]
3 years ago
7

ABC Company leased equipment to Best Corporation under a lease agreement that qualifies as a finance lease. The cost of the asse

t is $124,000. The lease contains a bargain purchase option that is effective at the end of the fifth year. The expected economic life of the asset is 10 years. The lease term is five years. The asset is expected to have a residual value of $2,400 at the end of 10 years. Using the straight-line method, what would Best record as annual amortization
Business
1 answer:
alexandr402 [8]3 years ago
7 0

$12120 is the annual amortization expense

<u>Explanation:</u>

The following formula is used to calculate the annual depreciation expense that will be recorded in the books of accounts

Depreciation = ( cost of the asset minus salvage value) divide by number of years.

Given data in the question: number of years = 10, cost of the asset = $124000, salvage value = $28000

Putting the figures in the formula,

Depreciation expense = ($124000 minus $28000) divide by 10

After solving, we get = $12120

Thus, annual depreciation expense = $12120

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You purchased 1,350 shares of Barrett Golf Corp. stock at a price of $36.23 per share. While you owned the stock, you received d
enot [183]

Answer:

$6210.00

Explanation:

The computation of total dollar return on the investment is shown below:-

Total Return on Shares = (Dividend + (Sale price - Purchase price)) × Number of Shares

=  ($0.65 + $40.18 - $36.23) × 1,350

= $4.6 × 1,350

= $6210.00

Therefore for computing the total return on shares we simply applied the above formula.

4 0
3 years ago
Jane and Brad both produce nuts and coffee. They each prefer to consume a diet that is half nuts and half coffee. Both have acce
vfiekz [6]
D. Bras has an absolute advantage in coffee and jane has an absolute advantage in nuts
4 0
3 years ago
Depreciation of equipment is an example of a(n) relevant cost. opportunity cost. sunk cost. variable cost. None of these.
77julia77 [94]

There are different kinds of cost incurred in business. Depreciation of equipment is an example of sunk cost.

  • Sunk cost is a financial term for a cost that has been incurred and one cannot recover again. This type of costs are taken as bygone and are not taken into consideration when making decisions.

They are money that has been spent and one cannot get back again. Example is Depreciation, amortization, and impairments.

Lean more about  Sunk costs from

brainly.com/question/16524308

7 0
2 years ago
Which events listed below would terminate a brokerage relationship where a broker represented a seller
sertanlavr [38]

The events listed that would terminate a brokerage relationship where a broker represented a seller are:

  • The house sold and the transaction closed
  • The owner declares personal bankruptcy

<h3>Who is a broker?</h3>

Broker is a person or a company whose work is to sell a company's products hence charge a commission for each product sold. He is like an intermediator between the company and the client.

An agency relationship creates a fiduciary duty owed by the agent to the principal, hence must act in the best interest of his principal at all times.

However, a brokerage relationship may be dissolved where the owner of an item is declared bankruptcy and also were transaction have been completed or closed.

Learn more about brokerage here: brainly.com/question/7284696

#SPJ1

5 0
2 years ago
Morgana Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated
Verizon [17]

Answer:

OAR per  Machine Set-ups = $60

OAR per Machining             = $15

OAR per Inspection             = $50

Explanation:

Overhead Absorption Rate (OAR) = Estimated Overhead Costs/ Cost drivers

OAR per  Machine Set-ups =  $150,000/2,500

                                           =  $60 per set-up

OAR per Machining = $375,000/25,000

                                =$ 15 per machine hr

OAR per Inspection = $87,500/1,750

                                 =$50 per inspection

7 0
3 years ago
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