1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
FinnZ [79.3K]
4 years ago
6

Jacobs Eatery leased restaurant equipment from Gamma Leasing. Gamma earns interest under such arrangements at a 6% annual rate.

The lease term is eight months with monthly payments of $20,000 due at the end of each month. Jacobs Eatery elected the short-term lease option. What is the effect of the lease on Jacobs Eatery's earnings during the eight-month term (ignore taxes)?An initial expense of $160,000.An expense of $20,000 at the end of each of the 8 months.No expense within the 8 month period.An expense of $20,000 initially and $20,000 at the end of 7 months.
Business
1 answer:
kondor19780726 [428]4 years ago
3 0

Answer:

An expense of $20,000 at the end of each of the 8 months

Explanation:

The effect of the lease on earning during the eight-month term is the $20,000 expense for each month up to 8 months.

As we know that the monthly lease payments are $20,000 due at the end of each month. So it is considered to be the expense for $20,000 for the 8 months. As the lease payment is considered as the least deduction which are eligible for both type of records i.e accounting and the tax purpose.

Hence, all other options are wrong except B option

You might be interested in
Jane's candy shack was a quaint shop, in a small town, with high end items that never attracted many customers. its failure was
Masteriza [31]
The failure of the shop was probably because the owner fails to search or do research work in her market that made customers feel no attraction to the things that she sells. She should have done or better research s in making the customers attracted to the things that she sells so that she will have customers that are large in numbers and in the same time, her shop would sell.
8 0
3 years ago
A strip footing is generally used under a
Genrish500 [490]

Answer:

b) Wall

Explanation:

Wall Footing or Strip footing. This type is used to distribute loads of structural or non- structural load-bearing walls to the ground in such a way that the load-bearing limit of the soil isn't outperformed. It runs along the direction of the wall.

5 0
4 years ago
Read 2 more answers
Riverview Company is evaluating the proposed acquisition of a new production machine. The machine's base price is $200,000, and
Hitman42 [59]

The NPV of the venture is -$sixteen,752.55.

In accounting, the working capital overall is typically derived from the figures for present-day belongings and present-day liabilities recorded on the stability sheet. as an instance, a corporation with $2 hundred,000 in cutting-edge property and $100,000 in modern liabilities has operating capital of $100,000.

The working capital calculation is working Capital = present-day assets - modern Liabilities. as an example, if an agency's stability sheet has 300,000 total modern assets and 200,000 total modern liabilities, the corporation's working capital is one hundred,000 (property - liabilities).

Working capital is just what it says – it's for the cash you have to paint with to meet your short-time period needs. it is vital because it's miles a degree of an organization's capacity to repay quick-term costs or money owed.

Learn more about Working capital here: brainly.com/question/26214959

#SPJ4

3 0
2 years ago
Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production
DedPeter [7]

Answer:

The leisure time enjoyed by households The costs of overfishing and other overly intensive uses of resources

The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government

Explanation:

Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.

GDP calculated using the expenditure approach =

Consumption spending + Investment spending + Government Spending + Net Export

Funds spent by city governments to renovate their buildings is included in the calculation of GDP as part of government spending.

Items not included in the calculation of GDP are :

1. Leisure

2. Externality

3. Transfer payment

4. Illegal activities

I hope my answer helps you

7 0
4 years ago
Which set of materials includes the fewest number of ingredients that are needed to make a lemon into an effective battery that
Mariana [72]
The chemical properties that are significantly present inside the lemon are can be utilised to act as an electrolyte used to power electrical load devices. In addition to that, the juice inside this fruit which contains rich sodium content would most likely be connected with zinc and copper electrodes to power up the digital clock.
8 0
4 years ago
Other questions:
  • Free market economies offer distribution methods for goods and services based on _____ .
    11·2 answers
  • The income statement, also known as a profit and loss (P&L) statement, provides a snapshot of a company's financial performa
    14·1 answer
  • You just won a prize that comes with two payout choices. The first option is to get $100,000 right now and nothing hereafter. Th
    9·1 answer
  • The Office Interiors Company has developed a new, modern office chair. Initial sales forecasts are for 64 chairs per day. The as
    6·1 answer
  • What is the adjusting journal entry to update the Prepaid Insurance account?
    8·1 answer
  • The maximum outstanding balance you should have on a credit card with a $4,000.00 limit is _____.
    5·2 answers
  • What is Walmart's Times Interest Earned Ratio for the year of 2018 (round it to 3 numbers after the decimal point -> 0.581)
    5·1 answer
  • In fiscal 2016, Microsoft Corp. reported a statutory tax rate of 35% and an effective tax rate of approximately 15%. The 2016 in
    14·1 answer
  • McElroy Inc, produces is single model of a popular cell phone in large quantities. A single cell phone moves through two departm
    5·1 answer
  • I need hElP!11!!rlelrdwf
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!