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
k0ka [10]
3 years ago
15

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

inimum lease payments at lease inception was $1,000,000. The executory costs to be paid by Bolton were $50,000, and the fair value of the equipment at lease inception was $900,000. What amount should Arena report as the lease liability at the lease's inception?
Business
1 answer:
nadya68 [22]3 years ago
8 0

Answer:

$1,000,000

Explanation:

The Amount to be reported as  lease liability must <em>depict </em>the present value of future cash outflows required to be paid as the entity enjoys its <em>right to use the asset</em>.

Thus, the present value of the minimum lease payments at lease inception was $1,000,000 represents the amount of lease liability.

You might be interested in
What might labor unions bargain for
Rus_ich [418]
Almost always, labor unions bargain and negotiate for "all of the above" since they were formed during the Industrial Revolution when worker conditions were very dangerous. 
3 0
3 years ago
You and your spouse are in good health and have reasonably secure jobs. Each of you makes about $40,000 annually. You own a home
chubhunter [2.5K]

Answer:

$63,000

Explanation:

One of the four methods of determining insurance if the DINK method which means Double income with no kids.

To estimate the value of the insurance using this method , the sum of  , mortgage , car loans and personal debt is divided by two and added to the funeral expenses

Mortgage - 100,000

Car loan - 11,000

Personal debt - 2000

Credit card - 3000

Total = 116,000

Insurance = (116,000/2) = 58,000

Funeral expenses - 5,000

=63,000

5 0
2 years ago
Why is it important to conduct market research on your target audience before building your marketing plan
Yuki888 [10]
Its important to conduct market research on your target audience before building your marketing plan because you need to consider who your potential customers are before deciding on marketing strategies. Customers enjoy sharing their opinions, so market research will make your product sell more.
4 0
3 years ago
As in the previous Participation Exercise, the Khalid Company manufactures and sells Paso-the-Salsa, which is a bottled condimen
Ad libitum [116K]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Each bottle is sold for $5. The company recently had the following costs to produce 12,000 units of its product during August:

(1) Rent of $5,000 on a billboard to help advertise the product

(2) Rent on factory and equipment of $8,000

(3) Total payroll for hourly-paid, factory workers $24,000

(4) Tomatoes, onions, spices, and bottles $18,000

(5) Total payroll for salaried, administrative staff $6,000

The company sold 8,000 units.

A) First, we need to calculate the total and unitary cost of production:

Total cost= direct material + direct labor + factory overhead

Total cost= tomatoes, onions, spices, and bottles + Total payroll for hourly-paid, factory workers + Rent on factory and equipment

Total cost= 18,000 + 24,000 + 8,000

TC= 50,000

Unitary cost= 50,000/12,000= $4.17 per bottle

Now, we can calculate the cost of goods sold:

COGS= unitary cost* units sold= 4.17*8,000= $33,360

B) Income statement:

Sales= 8,000*5= 40,000

COGS= (33,360)

Gross profit= 6,640

Selling expense= (5,000)

Administrative expense= (6,000)

Net operating income= (4,360)

C) Inventory= unitary cost* ending inventory in units

Inventory= 4.17*4,000= $16,680

4 0
3 years ago
List at least four investment alternatives.
Ierofanga [76]
Four investment alternatives are hedge funds, futures, stocks, and bonds. If you are looking for more: mutual funds, annuities, and real estate are others.
5 0
3 years ago
Read 2 more answers
Other questions:
  • According to immanuel wallerstein, currently, there are many countries whose production is owned or leased by dominating countri
    10·1 answer
  • Easy 25 points!!! Yes or no! Just add a short explanation!
    12·1 answer
  • Which of the following is a good basic requirement for a satisfying career? A.It requires a lot of overtime. B.It allows for fre
    6·2 answers
  • Which of the following is true of a budget committee? a.It ensures that shareholders approve the budget. b.It takes care of the
    12·1 answer
  • Describe a product that you think has saturated its market
    7·1 answer
  • AP MICROECONOMICS 1. GW Company produces and sells hats in a perfectly competitive market at a price of $2 per hat. Assume that
    6·1 answer
  • An agent has recently changed his email address. What must the agent do to comply with the regulation for change of address?
    6·1 answer
  • You might have heard your grandmother say, "when i was your age, candy bars cost a nickel." like candy bars, the price of fast f
    8·1 answer
  • What is the tribal assistance coordination group (TAC-G)?
    15·1 answer
  • Wanting to finalize a sale before year-end, on December 29, WR Outfitters sold to Bob a warehouse and the land for $125,000. The
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!