Answer:
Deferred at the time of the sale-leaseback and subsequently amortized.
Explanation:
Brown properties is involved in a sales-leaseback transaction, and still has the right to substantially all of the remaining use of the property. So the company will have a higher income in the year when the revenue from sales was made.
The company will make less when they are paying the lease interest expense in subsequent years. So it will be better to defer the gain from the sale and armortisenit over the lease term. This will cancel out the loss realised from lease Interest expense.
Answer:
a. return rate ,r =24%
b. Yes
c. see the explanation below
Explanation:
a. Let's represent customer’s expected return if she borrows the money with 'r'
100 -90 = $106/(1+r) - 90*1.04/(1+r)
10= 12.4/(1+r)
1+r= 1.24
r=24%
b. It is obviously true that borrowing makes investment more attractive .
c. In both operating periods and bankruptcy, the debt has a fixed life and has a priority claim on cash flows. This is due to the fact that interest is paid before the claims to equity holders, and should in case the company fails on interest payments, it will be declared bankrupt, its assets will be sold, and before any payments are made to equity holders, the amount owed to debt holders will be paid
Answer:
has a facility that is below optimum operating level and should build a larger facility.
Explanation:
In the case when the organization whose capacity should be on the average unit cost curve where it would be decline when the output rises so this means that it has a facility i.e. lower than the optimal level of operation and should established the larger facility
Hence, the first option is correct
And, the other options would be incorrect
Answer: The correct answer is "A. bilateral.".
Explanation: Windsor, the owner of Windsor's Sandwiches, contacts Gary, a new supplier. He promises Gary that he will pay him $375 if Gary delivers 20 pounds of cheese the following morning. Gary promises to make the delivery as requested by Windsor. This creates a<u> BILATERAL </u>contract between them.
It is a bilateral contract because it produces effects and obligations for both parties, Gary is obliged to deliver 20 pounds of cheese the next morning and the owner of Windsor is obliged to pay Gary $ 375 for it.
I think you will acccess the money when ur 18 years old