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
If a perfectly competitive firm finds that price is less than average variable cost, it should: shut down immediately. increase
Musya8 [376]

Answer: It should shot down immediately.

Explanation:

If the market price is equal to average cost at the profit-maximizing level of output, then the firm is making zero profits. If the market price that a perfectly competitive firm faces is below average variable cost at the profit-maximizing quantity of output, then the firm should shut down operations immediately.

4 0
3 years ago
Which of the following is not a good question to consider prior to buying a supplement?
poizon [28]
D. all of the above are good questions.
8 0
3 years ago
The following credit sales are budgeted by Novak Corp.: May $580700 June 854000 July 1195600 August 1024800 The company’s past e
Andru [333]

Answer:

The anticipated collections for August are $1024800

Explanation:

Based on the past experience part, the cash inflows for August will include 8% of June's sales collection, 20% of July's sales collection and 70% of August's sales collection.

Thus, the anticipated collection for August will be:

  • 8% of June' sales = 854000 * 0.08 = 68320
  • 20% of July's sales = 1195600 * 0.2 = 239120
  • 70% of August sales = 1024800 * 0.7 = 717360

Total anticipated collection-August = 68320 + 239120 + 717360 = $1024800

8 0
3 years ago
A convention is best described as: a) A large marketplace for trading b) A legislative meeting c) A large meeting dedicated to a
Archy [21]

Answer:

Option C                  

Explanation:

In the context of a conference, a convention is indeed a assembly of individuals that occur at an agreed location and time either to address or participate in a mutual interest. The most commonly organised conventions are focused on trade, career and fanbase.

Conventions are mostly organised and managed by skilled gathering and conference managers, sometimes by the event organising company's employees or by independent experts, sometimes in exact description. Many big cities should have a conference centre devoted to organising activities like these.

8 0
3 years ago
Explain an advantage of having both ethical and sustainable objectives?
Sergeeva-Olga [200]
Try looking it up on google
4 0
3 years ago
Other questions:
  • Lyell is a sales representative for the Nutty Boys Nut Butter Company. He is about to meet with his manager to review his progre
    9·1 answer
  • The marginal utility for the third unit of X is 63 utils, and the marginal utility for the fourth unit of X is 56 utils. Assume
    8·1 answer
  • In which case can we be sure that real gdp rises in the short run?a.foreign economies expand and the money supply increasesb.for
    8·1 answer
  • La página web = la página<br>O<br>A. clic<br>OB. red<br>O<br>C. navegador<br>D. electrónica​
    9·2 answers
  • Virtually every business has variable expenses, which move up and down in tight proportion with changes in sales volume or sales
    15·1 answer
  • On March 1, 2014, Zobrist Company acquired real estate, on which it planned to construct a small office building, by paying $79,
    14·1 answer
  • When reporting operating activities in a statement of cash flows, depreciation is: Multiple Choice ignored in the indirect metho
    9·1 answer
  • A. Considerations for research
    5·1 answer
  • FORco, a country F corporation, wants to open a sales office in the United States. FORco does not form a U.S. subsidiary, but in
    14·1 answer
  • Vito Co. had current assets of $9,000 and current liabilities of $6,000 at the end of the year. Net income during the year was $
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!