Inflation is best understood as the rate at which _________

On January 1, James Industries leased equipment to a customer for a four-year period, at which time possession of the leased ass

MA_775_DIABLO [31]

Answer:

- $700,000

- 82,270

-  $617,730

- present value of $1: n=4, i=5%

- the present value of an ordinary annuity of $1: n=4, i=5%

Explanation:

Amount to be recovered (fair value): $700,000

Less: Present value of the residual value ($100,000 x .82270*): 82,270

Amount to be recovered through periodic lease payments: $617,730

Lease payments -: end of each of the next four years: ($617,730 ÷ 3.54595**) $174,207

* present value of $1: n=4, i=5%

** present value of an ordinary annuity of $1: n=4, i=5%

7 0

3 years ago

What is the maximum amount you would pay for an asset that generates an income of $250,000 at the end of each of five years, if

Serggg [28]

250,000/1.08 + 250,000/1.08^2 + 250,000/1.08^3 + 250,000/1.08^4 + 250,000/1.08^5 = $998,177.51 is the correct answer

<h3>What is an asset?</h3>

An asset is a resource having economic worth that a person, organization, or nation owns or manages with the hope that it may someday be useful.

The balance sheet of a business lists assets. They are divided into four categories: tangible, financial, fixed, and current. They are acquired or produced in order to raise a company's value or improve the operations of the company.

Whether it's manufacturing equipment or a patent, an asset can be viewed of as anything that, in the future, can generate cash flow, lower expenses, or increase sales.

An asset is anything that can increase sales, lower costs, or generate cash flow, whether it be a patent or manufacturing equipment.

To learn more about asset, visit:

brainly.com/question/14404094

#SPJ4

3 0

1 year ago

Clear Colors Corporation uses a predetermined overhead rate based on direct labor costs to apply manufacturing overhead to jobs.

belka [17]

Answer:

b. $ 2,000 overapplied

Explanation:

Firstly, we need to determine the predetermined overhead rate based on direct labor costs.

Estimated total manufacturing Overhead $ 350,000

Estimated direct labour costs $ 200,000

Predetermined overhead rate $ 350,000 / $ 200,000 $ 1.75 per $ of direct labour costs.

The total manufacturing overhead applied on direct labor costs of $ 208,000, is:

$ 208,000 * $ 1.75  $ 364,000

Actual overhead costs incurred $ 362,000

Manufacturing overhead over applied $ 2,000

7 0

3 years ago

The best business writing is purposeful, economical, and ________. a. feelings oriented b. technical c. revenue driven d. audien

alexgriva [62]

Answer: (D) Audience oriented

Explanation:

The effective business writing is should be economical, audience oriented and also purposeful to the public so that we can easily explain about the main objective of the topic.

The importance of the business writing is that it helps in providing the strengthening of our organization and also build good communication with the consumers.

The audience oriented is one of the efficient communication with the audience where the speaker use their skills such as content and language for explaining bout the topic purpose in front of audience.

Therefore, Option (D) is correct.

4 0

3 years ago

Post Co as a lessee records a finance lease of machinery on 1/1/19. The 7 annual lease payments of $210,000 are paid at the end

Alex787 [66]

Answer:

PostCo.

a. Lease Amortization Schedule

Period PV PMT Interest FV

1/1/19 $1,022,400

12/31/19 $1,022,400 $210,000.00 $102,240 $914,640

12/31/20 $914,640 $210,000.00 $91,464 $796,104

b. Journal Entries:

January 1, 2019:

Debit Right of Use Asset $1,022,400

Credit Lease Liability $1,022,400

To record the right of use asset and the lease liability.

December 31, 2019:

Debit Interest on Lease $102,240

Credit Lease Liability $102,240

To record the interest expense for the year.

Debit Lease Liability $210,000

Credit Cash $210,000

To record the payment of lease liability and interest.

December 31, 2020:

Debit Interest on Lease $91,464

Credit Lease Liability $91,464

To record the interest expense for the year.

Debit Lease Liability $210,000

Credit Cash $210,000

To record the payment of lease liability and interest.

Explanation:

a) Data and Calculations:

Annual lease payments = $210,000

Present value of the lease payments = $1,022,400

Interest rate = 10%

Lease period = 7 years

December 31, 2019:

Interest on lease = $102,240 ($1,022,400 * 10%)

Lease liability = $914,640 ($1,022,400 + $102,240 - $210,000)

December 31, 2020:

Interest on lease = $91,464 ($914,640 * 10%)

Lease liability = $796,104 ($914,640 + $91,464 - $210,000)

3 0

2 years ago

Inflation is best understood as the rate at which __________.