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
CaHeK987 [17]
3 years ago
11

Arena Corp. leased equipment from Bolton Corp. and correctly classified the lease as a finance lease. The present value of the a

nnual lease payments at lease inception was $1,000,000. The present value of the maintenance and service obligations to be paid by Bolton was $50,000, and the fair value of the equipment at lease inception was $900,000. What amount should Arena report as the finance lease obligation at the lease's inception?
Business
1 answer:
Ratling [72]3 years ago
3 0

Answer:

The correct answer is $900,000

Explanation:

Arena Corp. should record the asset and the lease obligation at the lower of the fair value of the asset at the inception of the lease.

In this case, The fair value is $900,000 and its precise amount to record. Keep in mind that Executory costs aren´t included in the lease obligation.

You might be interested in
A traditional store selling products
4vir4ik [10]
Confused? What is the problem at hand?
3 0
3 years ago
A client interested in the returns offered by CMOs asks you which type has the lowest prepayment risk. What should you say
Margarita [4]

Answer: Planned amortization class (PAC) tranches

Explanation:

The planned amortization class (PAC) is a form of CMO which is typically put I place for that risk-averse investors. It gives a principal repayment schedule that have been predetermined in as much as there are certain range for the mortgage prepayment.

It should also be noted that it has top priority and also gets principal payments which can be up to certain amount.

5 0
4 years ago
Assume anderson general store bought, on credit, a truckload of merchandise from american wholesaling costing 23400. if anderson
Amiraneli [1.4K]

Answer:

Explanation:

Cost of inventory = Purchase cost + Transportation cost - Purchase return - Purchase discount

Purchase cost = 23,400

Transportation cost = 690

Purcahse return = 1300

Purchase discount = (23400 - 1300)*3% = 663

Cost of inventory = 23,400 +690-1300-663 = 22,127

6 0
3 years ago
LaRoe Lawns’ inventory increased during the year by $6.7 million. Its accounts payable increased by $6.6 million during the same
kozerog [31]

Answer:

a. Cash paid to suppliers of merchandise during the reporting period: $44.1 million

b. A summary entry that represents the net effect of merchandise purchases during the reporting period as below:

Dr Cost of goods sold                  44,000,000

Dr Inventory                                   6,700,000

Cr Account Payable                      6,600,00

Cr Cash                                          44,100,000

Explanation:

We have the total amount goods buying from the supplier in the period = Cost of good sold in the period + Difference in the inventory balance of the period = $44 million + $6.7 million = $50.7 million

Thus, the additional amount owed supplier in the period is $50.7 million.

Account Payable increased by 6.6 million, it means that only 44.1 million ( that is, 50.7 million - 6.6 million) is paid during the period.

Thus, the summary will represents: Increase in COGS 44 million ( given); Increase in Inventory 6.7 million (given); Increase in account payable 6.6 million ( given) and Decrease in Cash 44.1 million ( calculated above).

4 0
3 years ago
a realistic and cost-effective starting point for emergency services in low-income countries could be: a. major expansion of eme
vredina [299]
<h3>b) emergency transport</h3>

Emergency transport is used to get a patient to a hospital quickly. Medical transport involves moving someone who needs or wants medical care during the journey.

"Emergency care can make an important contribution to reducing avoidable death and disability in low- and middle-income countries. But emergency care needs to be planned well and supported at all levels--at the national, provincial and community levels"

The misconception that emergency transport cannot be cost effective in low-income settings is demonstrably inaccurate. "With better planning, the ongoing costs of emergency care can result in better outcomes and better cost-effectiveness. "

Hence the correct option is b) emergency transport

To learn more about emergency transport click below

brainly.com/question/20660966

#SPJ4

7 0
2 years ago
Other questions:
  • Eaton Tool Company has fixed costs of $340,400, sells its units for $80, and has variable costs of $43 per unit. a. Compute the
    12·1 answer
  • Net income for the year was $45,500. accounts receivable increased $5,500, and account payable increased by $11,200. under the i
    12·1 answer
  • In 2009, the worst recession in 80 years hit the United States, generally reducing household incomes. Despite this, profits and
    11·2 answers
  • One type of substantive procedures is called: a. Analytical review b. Financial review c. Test of accounts d. Test of deletions
    10·1 answer
  • In a particular country in 1998, the average worker needed to work 25 hours to produce 40 units of output. In that same country
    8·1 answer
  • The University of Puhonicks hires several professors that specialize in accounting, management, and economics and clusters each
    5·1 answer
  • Identify and explain 2 non-financial ways of motivating staff in a business.
    12·1 answer
  • Why is it important to screen your business idea?​
    14·1 answer
  • During 2022, its first year of operations as a delivery service, Flounder Corp. entered into the following transactions.
    9·1 answer
  • Answer the above Questions ​
    6·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!