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VMariaS [17]
3 years ago
14

Torrey Co. manufactures equipment that is sold or leased. On December 31, 2021, Torrey leased equipment to Dalton for a five-yea

r period ending December 31, 2026, at which date ownership of the leased asset will be transferred to Dalton. Equal payments under the lease are $1,400,000 (including $100,000 executory costs) and are due on December 31 of each year. The first payment was made on December 31, 2021. Collectibility of the remaining lease payments is reasonably assured, and Torrey has no material cost uncertainties. The normal sales price of the equipment is $3,850,000, and cost is $3,000,000. For the year ended December 31, 2021, what amount of income should Torrey realize from the lease transaction
Business
1 answer:
topjm [15]3 years ago
5 0

Answer:

$850,000

Explanation:

The computation of Amount of income should Torrey realize from the lease transaction is shown below:-

Amount of income should Torrey realize from the lease transaction = Sale price - Cost

= $3,850,000 - $3,000,000

= $850,000

Therefore for computing the amount of income should Torrey realize from the lease transaction we simply deduct the cost from sales price.

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Define an informal business
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3 years ago
Adam and Jose are attempting to identify the bundle of product features most likely to attract customers. Jose argues that they
vladimir1956 [14]

Answer:

Conjoint study

Explanation:

A conjoint study is also known as Conjoint analysis, it is a form of market survey or market research that helps a business to know how people interacts with their product and services based on the product's features, functions and benefits.

Conjoint study;

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3 0
3 years ago
On May 31, Money Corporation's Cash account showed a balance of $16,000 before the bank reconciliation was prepared. After exami
yaroslaw [1]

Answer:

cash balance tobe reported in the balance sheet 16,880

Explanation:

cash account   16,000

NSF check            240

service charge      (80)

amend mistake:    720

adjusted:          16,880‬

the check oustanding and the deposits in-transit are adjustment for the bank balance. not the firm cash accounting

We must look for data which wasn't know until receive the bank statement.

Those are:

the non-sufficient funds

the service charge

and the accounting mistake

6 0
3 years ago
When gavin sells his product to a ____, the storage function is transferred to the intermediary. brokers wholesalers common carr
Natali [406]
When Gavin sells his product to a wholesaler, the storage function is transferred to the intermediary. Gavin sells his product to someone who will wholesale the item to a larger business. Each of these processes are important and describe the background of business to business (B2B) sales.
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3 years ago
A firm in an industry with many other firms spends a significant amount on advertising to ensure consumers recognize their logo.
Soloha48 [4]

Answer:

Monopolistic competition

Explanation:

A monopolistic competition is when there are many firms selling differentiated products in an industry.

A monopolistic industry has characteristics of both a monopoly and a perfect competition. The demand curve is downward sloping. it sets the price for its goods and services.

An example of monopolistic competition are restaurants

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2 years ago
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