Answer:
Explanation:
The present value of lease payments is approx $29000000
Fair Value at the time of lease agreement is $15000000
% lease payment to fair value of building =$29000000/$15000000*100=193.33%
Lease of newly constructed building is a capital lease as total lease payments exceeds 193% of the lease asset fair value.
Lease term % based on estimated useful life of building is 30/40 =75%
Lease is a capital lease as lease term is for a period 75% of estimated life of lease asset.
a) Journal Entries
Date Account Title Dr Cr
Expenditure $29000000
To Cash $1,796,659
To Other Financial Sources $27,203,341
Capital lease Agreement To record capital lease and down payment
Buildings $29000000
To Cash $1,796,659
To Capital lease obligations $27,203,341 Payable to record capital lease and lease payments payable
Answer:
$38,400
Explanation:
<em>1. Cash Purchases:</em>
The total purchases in the month of March is of $35,000.
It is given that 70% of Purchases are for cash.
Hence, 70% of $35,000 would be;
$39,000 x 0.70
$27,300
<em>2. Credit Purchases:
</em>
Remaining Balance of Purchases from the month of February:
For the month of February Cash Purchases can be calculated as follows;
$37,000 x 0.70
$25,900
Remaining Balance to be paid in March for the month of February can be calculated as follows;
$37,000 - $25,900
$11,100
<em>3. CASH PAYMENT for PURCHASES in MARCH:</em>
Cash Purchases = $27,300
Credit Purchases = $11,100
Hence;
<em>Cash Payment for purchases in March = Cash Purchases + Credit Purchases
</em>
Cash Payment for purchases in March = $27,300 + $11,100
Cash Payment for purchases in March = $38,400
Answer:
The government should increase the rate of inflation.
Explanation:
In adaptive expectations, agents shape their future expectations based on what has happened in the past. Thus, if the central bank intends to reduce unemployment, it should, for example, institute an active monetary policy. This is because, as the Phillps Curve shows, inflation variation and unemployment are inversely correlated, so decreasing unemployment requires increasing inflation.
C
a financial adviser is there to guide you, not to help you pay off bills
In this example, Wrigley used the Penetration pricing.
Penetration pricing is one of marketing strategy which aims to attract potential customers by offering lower price as its initial offering.
This pricing strategy helps a new product or service to penetrate the market and attract customers because of the low price offered.
In the question, the introductory price for chewing gum, mint mojito were set low and aims to attract new customers to the product.
In conclusion, Wrigley used the Penetration pricing to attract new customers.
Read more about this here
<em>brainly.com/question/3521758</em>