Answer:
Leasing as a capital financing is an alternative for small business for three important reasons: better technology, better capital management and tax incentives.
Explanation:
1. Better technology for the business.
Instead of buying the equipment, a lease is a better option because allows the organization to use cutting edge technology for the operation of a business.
2. Better capital management.
Buying machinery is a capital-intensive activity. Leasing let use the same machinery by less amounts of money and invest capital in other useful activities for the organization.
3. Tax benefits
Leasing is tax deductible. Reducing the fiscal pressure over the small business.
Answer:
$326,622.73
Explanation:
Calculation to determine How much will you have in your account if you make deposits for 20 years
Using this formula
Future value = Annuity × {( 1 + interest rate) ^ time period - 1} ÷ interest rate
Future value = $5,900 × {( 1 + 0.097 ^ 20 years - 1} ÷ 0.097
Future value= $5,900 × 55.3597842916
Future value= $326,622.73
Therefore the amount you will have in your account if you make deposits for 20 years is $326,622.73
Answer:
Predetermined manufacturing overhead rate= $42 per direct labor hour
Explanation:
Giving the following information:
Estimated manufacturing overhead= $924,000
Estimated direct labor hours= 22,000
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 924,000/22,000
Predetermined manufacturing overhead rate= $42 per direct labor hour
Answer:
When revenue has been received but the service has not been rendered, the revenue will not be recognized and will instead be treated as a liability called unearned revenue.
Date Account Title Debit Credit
Oct. 31 Cash $7,720,000
Unearned Ticket revenue $7,720,000
Date Account Title Debit Credit
Nov. 5 Unearned Ticket Revenue $1,930,000
Ticket Revenue $1,930,000
<u>Working </u>
Ticket revenue = 1/4 * 7,720,000
= $1,930,000
