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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.

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What is the beta of a 3-stock portfolio including 25% of stock A with a beta of 0.90, 40% of stock B with a beta of 1.05, and 35
natka813 [3]

Answer:

1.25

Explanation:

Calculation for What is the beta of a 3-stock portfolio

Portfolio beta = (.25 *0.9) + (.4 *1.05) + (.35 *1.73)

Portfolio beta = .225 + .42 + .606

Portfolio beta = 1.25

Therefore the beta of a 3-stock portfolio will be 1.25

5 0
3 years ago
The purpose of preparing a direct materials budget is to ________. multiple choice 1 allocate the cost of raw materials to produ
Eduardwww [97]

Answer:

1. estimate the quantity of raw materials to be purchased.

2. ending raw materials inventory for the last period.

Explanation:

A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on periodic basis.

The first step of the budgeting process is to prepare a list of each type of income and expense that will be part of the budget.

The final step by the management of an organization in the financial decision making process is making necessary adjustments to the budget.

The benefits of having a budget is that it aids in setting goals, earmarking revenues and resources, measuring outcomes and planning against contingencies.

1. The purpose of preparing a direct materials budget is to estimate the quantity of raw materials to be purchased. This includes the raw materials that would be used for the manufacturing of finished goods.

2. In a direct materials budget, the desired ending raw materials inventory for the year is equal to the ending raw materials inventory for the last period.

3 0
2 years ago
What is the present value of $6,811 to be received in one year if the discount rate is 6.5 percent?
Marat540 [252]

The present value of of $6,811 to be received in one year if the discount rate is 6.5 percent  will be $6, 395.31.

What does Present Value mean?

A financial concept that calculates the current value of a future sum of money or stream of cash flows is present value. It's used to compare the relative worth of different amounts of money that aren't available at the same time. The inverse of future value. The sum of future investment returns discounted at a specified rate of return is calculated as the present value of money you expect from future income.

What is Financial concept?

Financial concepts are the fundamental principles and theories of finance, which provide guidance on how to assess and manage financial risks, return, and value. These concepts include the time value of money, diversification, risk-return trade-off, capital budgeting, and portfolio selection. Financial concepts are essential for making sound financial decisions and investments.

The procedure to find an present value:

Present Value = FV/ (1+i)^n

6,811/(1+0.065)^1

6, 395.31

To know more about Present value,

brainly.com/question/15904086

#SPJ1

3 0
10 months ago
You are designing an exploratory study on couples who have polyamorous relationships (i.e., they have multiple committed relatio
victus00 [196]
Open-ended questionnaires
7 0
3 years ago
A property is being appraised using the income capitalization approach. Annually, it has potential gross income of $40,000, vaca
luda_lava [24]

Answer:

<em>Value $  256,250</em>

<em>rounding against nearest 1,000 dollar: 256,000</em>

<em />

Explanation:

From the gross income we subtract the expenses and vanacy losses.

40,000 gross income - 3,500 vacancy - 16,000 operating expense

20,500 net

<em />

Now, we solve for the present value of a perpetuity given the capitalziation rate of 8%

$ 20,500 /  0.08  =  <em>$  256,250</em>

6 0
2 years ago
Read 2 more answers
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