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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.

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Answer:

$2,166.60

Explanation:

Divide the salary by 12 months that are in a year, then divide my 2 because bi-weekly is every 2 weeks.

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3 years ago
Which license allows you to register as a registered representative (RR) or a stockbroker?
Nitella [24]

Series 7 would be the answer

5 0
4 years ago
Ace Company borrowed $10,000 from Fair Rates Bank by signing a two-year note payable. Ace's operating cycle is 14 months. This n
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Answer:

The note will be stated as a long term liability on the balance sheet of the company.

Explanation:

Long term liability is the financial responsibility of the business which is due for more than a year in the future. The present portion of the long term debt which is separately listed in order to provide a more accurate view of the liquidity and the ability of the company to pay the current liabilities as they become due.

Company borrowed $10,000 from bank by singing a note of 2 year. This would be considered as the long term liability.

6 0
3 years ago
bob mills furniture aims to improve the lives of many people. the mission statement could have focused on affordable furniture (
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<h3>What is Marketing?</h3>

This refers to the creation of awareness for a product to a customer base to drive them to buy.

Hence, we can see that The mission statement could have focused on affordable furniture (product-oriented), but instead, it focuses on making life better for its customers. this example shows that market-oriented firms shape their mission statement in terms of customer benefits

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6 0
2 years ago
Flagstaff Company has budgeted production units of 8,000 for July and 8,200 for August. The direct materials requirement per uni
Nezavi [6.7K]

Answer:B) $28,980.

Explanation:

Beginning inventory is 6,000 ounces

Closing inventory  = 8,200 × 3 ounces × 25%   = 6,150ounces

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Direct material to be purchased  = Closing inventory + Budgeted production - Beginning inventory= 29,400 ounces

Direct material to be purchased  = 6,150ounces +24,000-  6,000 ounces

= 24,150 ounces

Now,For $1.20 per pounce, it would be

= 24,150 ounces × $1.20

= $28,980.

4 0
3 years ago
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