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Lemur [1.5K]
3 years ago
12

On January 1, 2021, Yancey, Inc. signs a 10-year noncancelable lease agreement to lease a storage building from Holt Warehouse C

ompany. Collectibility of lease payments is reasonably predictable and no important uncertainties surround the amount of costs yet to be incurred by the lessor. The following information pertains to this lease agreement.(a) The agreement requires equal rental payments at the beginning each year.(b) The fair value of the building on January 1, 2021 is $6,000,000; however, the book value to Holt is $4,950,000.(c) The building has an estimated economic life of 10 years, with no residual value. Yancey depreciates similar buildings using the straight-line method.(d) At the termination of the lease, the title to the building will be transferred to the lessee.(e) Yancey’s incremental borrowing rate is 11% per year. Holt Warehouse Co. set the annual rental to insure a 10% rate of return. The implicit rate of the lessor is known by Yancey, Inc.(f) The yearly rental payment includes $15,000 of executory costs related to taxes on the property.
Business
1 answer:
Tom [10]3 years ago
8 0

Answer:

The correct answer is D At the termination of the lease, the title to the building will be transferred to the lessee.

Explanation:

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With regard to understanding the evolution of cooperation, the principal prediction that can be made from the expression br >
Anna71 [15]
Suppose we have two animals, X and Y and that X helps Y thanks to a gene. In this equation, we have that B is the benefit that Y receives, r the degree of relatedness and C is the cost of help. If the equation above holds, we have that the benefit (accounted for relatedness) overweighs the cost and the gene will spread. More specifically, the benefit to an individual's fitness (accounting for the probability that he has the gene) is greater than the cost to X's fitness and thus the probability that the gene propagates to the next generation is increased.
8 0
3 years ago
Annalise received financial aid offers from two universities.
natima [27]

Answer:

Option A will save her $15,500.

Explanation:

Financial aid is the assistance given to students to cater to a college education. It excludes Scholarships and grants as these are not cost items by other forms of assistance.

<u>Total for University Option A</u> excluding scholarships and grants

Tuition & Fees $10,000

Room and Board $11,500

Work-Study  <u>$ 4,000 </u>

Total for A  <u>$25,500</u>

<u>For university option B</u>

Tuition & Fees  $28,000  

Room & Board $ 9,000

Work-study  <u>$ 4,000</u>

Total for B  <u>$41,000</u>

Option B is more costly than A by :$41,000 - $25,500=$15,500.

Therefore, Option A saves $15,500

5 0
3 years ago
Read 2 more answers
Sue quit her $40,000 per year job and opened a coffee shop that she calls Top Brew. In the first year, Top Brew earned $200,000
Ainat [17]

Answer:

$21,000

Explanation:

Economic profit = accounting profit - implicit cost

Accounting profit= total revenue - explicit cost

Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials

Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives. Implicit cost includes salary lost due to opening the shop and interest that could have been earned on the savings  

Total explicit cost = $80,000 + $40,000 + $15,000 = $135,000

Accounting profit = $200,000 - $135,000 = $65,000

Economic profit = $65,000 - ($40,000 + $4,000) = $21,000

7 0
3 years ago
Abc sold 680 units of inventory during the month. cost of goods sold assuming lifo would be?
Luba_88 [7]

Cost of goods sold assuming LIFO would be  $1,653.

It is a technique used to account for stock. under LIFO, the charges of the maximum current merchandise bought  are the first to be expensed. LIFO is used best within the governed via the generally usual accounting concepts.

Determine the inventory cost of our oldest stock and multiply that fee with the aid of the quantity of inventory bought, whereas to calculate LIFO decide the fee of your maximum recent stock and multiply it by using the amount of inventory bought.

explanation;

Records for Dunbar Incorporated revealed the following:-

Cost of goods sold = (320 × $2.51) + (360 × $2.36)

Cost of goods sold = $803.2 + $849.6

Cost of goods sold = $1,653

Disclaimer:- your question is incomplete, please see below for complete questions

Beginning inventory 470 $2.36 Apr.

20 Purchase 320 2.51 Dunbar sold 680 units of inventory during the month. Cost of goods sold assuming LIFO would be?

Learn more about inventory here:- brainly.com/question/24868116

#SPJ4

5 0
2 years ago
Suppose that World Corp. signs a contract to build a lumber processing plant in Siberia. If World Corp. signs a second contract
jarptica [38.1K]
<h3>In the above scenario, World Corp. engaging in Compensation trade </h3>

Explanation:

Compensation trade is a type of countertrade procedure in which an incoming investment is repaid from the income generated by that investment.

In compensation trade, an investor is repaid by a share of the proceeds or outcomes produced by the goods and services provided by the investor.

Compensation trade is a type of barter where one of the flows is partly in commodities and partly in hard currency.

World Corp. take partial payment for the plant in the form of lumber products produced at the plant is a Compensation trade.

8 0
4 years ago
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