Answer: A sales-type lease without a selling profit.
Explanation: A sales-type lease without a selling profit is a type of lease where the initial direct costs are deferred and expensed over the lease term.
The expenses to be deferred and expensed includes:
1. costs associated directly with consummating a lease
2. costs essential to acquire the lease
3. costs that would not have been incurred had the lease agreement not occurred.
These can be achieved by not recording the prepaid expenses in the books separately but calculated with the lease receivable.
To prepare the journal entry to record the issuance of the shares. Costs being reduce by the stock issue is the amount that is otherwise recorded as PIC in excess of par. Therefore
Cash 424
Common stock (15 million x $1) 15
PIC in excess of par(Plug) 409
(to record the sale of the stock)
PIC in excess of par 2
(to record the stock issue costs)
Note: These two entries can also be combined as one.
Answer:
$10,000 unfavorable
Explanation:
The computation of the total variable overhead variance is shown below:
Total variable overhead variance is
= (Actual variable overhead cost - (manufactured units × standard variable overhead rate × required standard direct labor hours))
= ($40,000 - (2,500 units × $4 × 3)]
= $40,000 - $30,000
= $10,000 unfavorable
Since actual cost is more than the standard cost so it would be unfavorable variance
Answer:
Burberry is pursuing an umbrella strategy
Explanation:
Companies can choose three different kinds of strategies based on their strategy to offer a standard or customized product to customers with different needs
.
An umbrella branding strategy, is a marketing practice that involves many related products under a single brand name.
With the new items at an entry level, Burberry´s pricing strategy is such that it does not compromise on the quality but it does offer products at different price levels to target a variety of customers.
Answer:
The investor profit will be $85
Explanation:
Kindly check attached picture for detailed calculation