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Delicious77 [7]
3 years ago
7

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 10% was $81,100. Ten annual lease payments of $12,000 are due each year beginning July 1, 2021. Smith Co. had constructed the equipment recently for $66,000, and its retail fair value was $81,100.Under the new ASU, what amount of interest revenue from the lease should Smith Co. report in its December 31, 2016, income statement?
A- $12,000.
B- $4,000.
C- $3,400.
D- $5,000.
Business
1 answer:
Natali5045456 [20]3 years ago
5 0

Answer:

C- $3,400

Explanation:

The Karla Salons has leased equipment from Smith Co. in a finance lease. The Smith Co will record the interest receivable from the Karla Salons in its income statement. The Karla Salons will record lease obligations in its balance sheet. Under the new ASU, the interest revenue which Smith Co. will record in its income statement is $3,400 for the year 2016.

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Answer:

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3 years ago
When using the specific identification inventory method, cost of goods sold equals the ______.
aleksandrvk [35]

With the <em>specific identification inventory method</em>, the Cost of Goods Sold equals the <em>exact costs of the items sold.</em>

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The <em>specific identification inventory method</em>  is not like the:

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Thus, the <em>specific identification method</em> ensures that the Cost of Goods Sold equals the actual cost of the goods.

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4 0
2 years ago
Major federal eeo laws have been enacted to prevent discrimination against groups of workers most often affected by unfair emplo
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5 0
1 year ago
A lawnmower manufacturer estimates that the probability of a fatal accident caused by the design of its product is 1/10,000 and
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Answer:

790,000, i.e. $79 x 10,000= 790,000 . Yes, the manufacturer should change the design.  666,667 (when it goes from 1/10,000 to 1/15,000).  It is 500,000 (when it goes from 1/10,000 but ​1/20​,000) . No, the benevolent social planner would not agree with the manufacturer's decision.

Explanation:

In the estimates provided by the manufacturer, the total cost of the design is equivalent to  $79 x 10,000= 790,000. There should be an alteration in the design to remove the necessary precautions. If the probability is different from the estimate provided by the manufacturer, the planner will disagree with the decision made by the manufacturer. For example, a change to 1/15000 will make the total cost to be approximately $666,667.

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"this process of continuous alteration was applied not only to newspapers, but to books, periodicals, pamphlets, posters, leafle
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