Answer:
a. its average cost is greater than its marginal cost
Explanation:
Complete Question:
Accounting for an Operating Lease) On January 1, 2020, a machine was purchased for $900,000 by Young Co. The machine is expected to have an 8-year life with no salvage value. It is to be depreciated on a straight-line basis. The machine was leased to St. Leger Inc. for 3 years on January 1, 2020, with annual rent payments of $150,955 due at the beginning of each year, starting January 1, 2020. The machine is expected to have a residual value at the end of the lease term of $562,500, though this amount is unguaranteed.
Instructions
a. Record the journal entries St. Leger would record for 2020 on this lease, assuming its incremental borrowing rate is 6% and the rate implicit in the lease is unknown.
b. Suppose the lease was only for one year (only one payment of the same amount at commencement of the lease), with a renewal option at market rates at the end of the lease, and St. Leger elects to use the short-term lease exception. Record the journal entries St. Leger would record for 2020 on this lease.
Answer:
Attached file is the is a detail preparation in excel format
I would say that the work that Benji conducted on the books of the Sanborn Corporation would be classified as a financial audit because she checked their figures, examined their accounting procedures and prepared a report so this would qualify as an audit.
Answer:
After the war, Americans were ready to buy and wanted consumer goods like cars and appliances. Americans became accustomed to homes with electric lighting, phones, cars, vacations, and entertainment.
The lifestyles of Americans were significantly effected by the availability of labor saving products, luxury items and the emergence of mass advertising campaigns and consumerism.
Explanation: