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
Lyrx [107]
3 years ago
6

Karla Salons leased equipment from Smith Co. on July 1, 2021, in a finance lease. The present value of the lease payments discou

nted at 8% was $61,600. Ten annual lease payments of $8,500 are due each year beginning July 1, 2021. Smith Co. had constructed the equipment recently for $53,500, and its retail fair value was $61,600. The total decrease in earnings (pretaxed) in daltons december 31, 2021 income statement would be (ignore taxes):_____.
a. $3,296.
b. $6,376.
c. $4,928.
d. $5,204.
Business
1 answer:
photoshop1234 [79]3 years ago
3 0

Answer:

d. $5,204

Explanation:

Interest expenses up to December 31, 2020 = (Total present value of lease payment - Lease payment on July 2021) * 8% * 6/12

= $61,600 - $8,500 * 8% * 6/12

= $53,100 * 8% * 6/12

= $2,124

Depreciation Expenses up to December 31, 2021

= Fair value of equipment / Useful life * 6/12

= ($61,600 / 10) *6/12

= $6,160 * 6/12

= $3,080

Therefore, the total decrease in earnings (Pretax) in Larlas December 31, 2021 Income statement would be

= Interest expenses + Depreciation Expenses

= $2,124 + $3,080

= $5,204

You might be interested in
Pick the correct statements regarding cell references.
seropon [69]

where are the statements?

6 0
3 years ago
Read 2 more answers
What is the value of a put option at expiry if the stock price is 'S' and the exercise price is 'X'?
Setler [38]

Answer:

A put option is out of the money if the strike price is less than the market price of the underlying security. The holder of an option contract can exercise the option at any time before expiration.

Explanation:

hope this helps if not please let me know

6 0
2 years ago
Which of the following is NOT a factor in the phenomenon of online shoppers abandoning their shopping carts and not following th
Alona [7]

Answer: Option E

       

Explanation: It is a known fact that a consumer gets excited more while doing offline shopping rather than the online shopping. Offline shopping through malls and stores gives the consumer advantage of live appearance and trial use in case of clothes and other such merchandize.

However the long lines for billing and other such lengthy procedures make it difficult.

Hence from the above we can conclude that the correct option is E.

4 0
3 years ago
List the four steps in the response model for answering behavioral interview questions.
ad-work [718]
One technique in answering behavior interview questions is STAR where S makes for specific situation, T for task, A for action and R for result. SImple but efficient procedure
Thank you for your question. Please don't hesitate to ask in Brainly your queries. 
7 0
3 years ago
Read 2 more answers
Most plants want to have their supplies delivered just before they are needed to be used in production
vovangra [49]

Answer:

  True

Explanation:

The modern notion of "just in time" material delivery supports reduction of inventory and its associated costs. Plants that have sufficiently steady raw material usage will prefer supplies delivered "just in time."

Plants that have wildly varying production schedules or product mix may prefer a generous "safety stock." They may also prefer a generous supply inventory if their supply chain is unreliable.

It is true that most plants <em>want</em> to have supplies delivered just in time, but circumstances may make needs differ from wants.

4 0
3 years ago
Read 2 more answers
Other questions:
  • List four people who are likely to play a role in the induction of a new employee?​
    13·1 answer
  • Most manufacturers of vehicles equipped with diesel engines allow what type of biodiesel?
    8·1 answer
  • George wants to increase the number of visits to his insurance firm's website, which specializes in rental insurance for college
    10·2 answers
  • Questions<br>why do we need to understand the idea of culture, society and<br>politics?​
    5·1 answer
  • Suppose a brand has a heavy usage index of 1.5, penetration share of 0.6 and a market share of 15%. What is the share of wallet
    10·1 answer
  • Assuming a routine manufacturing activity, present journal entries (account titles only) for each of the following transactions:
    14·1 answer
  • Crane, Inc., is preparing its direct labor budget for 2020 from the following production budget based on a calendar year.
    11·1 answer
  • Which of the following methods would be most appropriate for an emotional appeal?
    14·2 answers
  • At any given time, the group of people age 16 years and older who are willing and able to work is known as
    9·2 answers
  • Which of the folloiwng is an example of direct finance?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!