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 do you call the person behind the desk at a hotel?
o-na [289]
The person is called a hotel desk clerk
5 0
3 years ago
Read 2 more answers
Your brother announces at Thanksgiving Dinner that he is thinking of becoming a day trader. What questions might you ask him to
Travka [436]

1) Has he diversified his portfolio within the 11 sectors?

2) Does he go for capital appreciation stocks or dividend stocks?

3) How much time does he spend studying a company's financials (10K form) and charts?

4) Who is his favorite investor? Warren Buffet for picking great stocks and holding for many many years or someone like  Bill Ackman who is a bit deceptive on his trading tactics (over the summer he said 'Hell is coming' a signal thought by many as "panic sell" whilst he was buying heavily)

5) What is the number he is seeking to retire? There's usually a number ranging from $1M and $200M.

6) Maybe ask him if he is seeking to get licensed as a CMT (reading chart patterns)?

Hope this helps, either way best of luck to him!

4 0
3 years ago
A new regulation requires the local coal plant to install filtering technology to reduce their carbon emissions by 50%. Purchasi
Ray Of Light [21]
<h2>cause _____ in this community, asnew regulation requires the local coal plant to install filtering technology to reduce their <em><u>carbon emissions by 50%. Purchasing the necessary equipment is too expensive for this business, forcing them to close the plant and lay off its 500 employees. Although the intent of the new regulation was to address potential _____ caused by the plant, the closing of the business will likely cause _____ in this community, as many of its</u></em> residents relied on jobs at the plant.</h2>
3 0
3 years ago
5 of 100
Ber [7]

The amount that Harry should pay for the investment is the present value of the net income discounted at the rate of return of 12% is equal to $270,000.

<h3>What do you mean by investment?</h3>

Investment refers to the dedication of an asset to acquire growth in value over a duration of time. In finance, the motive of making an investment is to generate a return from the invested asset.

As per the information,

The vacancy rate is given is 5%

The occupancy rate is 100 - 5= 95%

\rm\,The\,Net \,Income = Occupancy \, Rate \times Income - Expenses\\\\   \rm\,The\,Net \,Income =  (95\% \times 3,600 \times 12) - 8,640\\\\   \rm\,The\,Net \,Income =  \$32400

Now, if it is assumed that the income is earned forever, then the present value of the income will be

PV of net income = A/r

A- 32400 , r - 12%

                           \rm\,PV = \dfrac{32400}{0.12}\\\\\\PV = \$270000

Hence, The amount that Harry should pay for the investment is the present value of the net income discounted at the rate of return of 12% is equal to $270,000.

Learn more about investment:

brainly.com/question/24703884

#SPJ1

4 0
2 years ago
Before year-end adjusting entries, Dunn Company's account balances at December 31, 2014, for accounts receivable and the related
nlexa [21]

Answer: $1,075,000

 

Explanation: When a current or fixed asset is held in inventory, the worth at which it is recorded in accounting is called its net realizable value. In the given case, the net realizable value could be computed using following formula  :-

Net realizable value = Balance of receivable on Dec 31 - expected                                                                                                                                                                                 uncollectibles          

Putting the values into equation we get :-

Net realizable value = $1,200,000 - $125,000

                                   = $1,075,000

                       

5 0
3 years ago
Other questions:
  • Assume the economy is on aggregate demand AD1. The Fed should attempt to raise investment by enough to shift aggregate demand fr
    15·1 answer
  • A monetarist would argue that a. prices are inflexible. b. wages are inflexible. c. changes in M in the short run can cause Real
    6·1 answer
  • In a Process-oriented layout work centers are arranged to minimize the costs of material handling. The basic cost elements for o
    5·1 answer
  • The primary purpose of the trial balance is to: 1.prove the equality of the debit and credit amounts after posting. 2.transfer j
    8·1 answer
  • Which of the styles on Blake and Mouton’s Leadership Grid has high concern for interpersonal relationships and low concern for t
    11·1 answer
  • A storage tank acquired at the beginning of the fiscal year at a cost of $90,000 has an estimated residual value of $12,000 and
    14·1 answer
  • Which of the following sentences use correct punctuation?
    13·1 answer
  • When formulating a positioning strategy, a multiple-benefits approach is strongly suggested to satisfy many markets at the same
    9·1 answer
  • The 2021 income statement of Anderson Medical Supply Company reported net sales of $12 million, cost of goods sold of $5.5 milli
    8·1 answer
  • The AD Curve ________. A) indicates the level of aggregate output corresponding to different goods-market-clearinglevels of the
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!