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defon
3 years ago
13

In computing the present value of the lease payments, the lessee should Group of answer choices use its incremental borrowing ra

te in all cases. use both its incremental borrowing rate and the implicit rate of the lessor, assuming that the implicit rate is known to the lessee. use the implicit rate of the lessor, assuming that the implicit rate is known to the lessee. use the implicit rate in all cases.
Business
1 answer:
Lady_Fox [76]3 years ago
3 0

Answer:

use the implicit rate of the lessor, assuming that the implicit rate is known to the lessee.

Explanation:

Present value is the technique used in determining the today's worth of future value using a discounting factor.

In calculating the discounting factor to be used for computing the present value of lease payments, the lessee has the option of using whichever is lower between its incremental borrowing rate or the implicit rate of the lessor. The implicit rate of the lessor will be considered only if the lessee knows the the implicit rate of the lessor.

Based on this, the correct option from the question is to use the implicit rate of the lessor, assuming that the implicit rate is known to the lessee. This is if it is lower than its incremental borrowing rate.

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"Free" items only cost the company that gives them away.<br> O A.<br> True<br> OB. False
Semmy [17]

Answer:

A. True

Explanation:

8 0
3 years ago
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G during february, $186,500 was paid to creditors on account, and purchases on account were $201,400. assuming the february 28 b
Rufina [12.5K]
<span>The balance on Feb 1 was $44,100. Find by solving for x, the account balance on Feb 1, knowing that $59,900 was the balance on Feb 28. Find by adding $201,400 of purchases and subtracting $186,500 paid to creditors:
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4 0
3 years ago
On December 21, 2017, Novak Company provided you with the following information regarding its equity investments.
vodomira [7]

Answer:

(a)

Dr Unrealized Holding Gain or Loss -Equity $1,410

Cr Fair Value Adjustment $1,410

(b)

Dr Cash $9,410

Dr Loss on Sale of Investment $590

Cr Equity Investment $10,000

(c)

Dr Fair Value Adjustment $1,120

Cr Unrealized Holding Gain or Loss-Equity $1,120

Explanation:

(a) Preparation of the adjusting journal entry needed on December 31, 2017.

Dr Unrealized Holding Gain or Loss -Equity $1,410

Cr Fair Value Adjustment $1,410

(To Adjust to Fair Value for 2017)

(b) Preparation of the journal entry to record the sale of the Colorado Co. stock during 2018.

Dr Cash $9,410

Dr Loss on Sale of Investment $590

(20,200- 20,790)

Cr Equity Investment $10,000

($9,410+$590)

(To Record Sale of Stock)

(c)Preparation of the adjusting journal entry needed on December 31, 2018.

Dr Fair Value Adjustment $1,120

Cr Unrealized Holding Gain or Loss-Equity $1,120

(To Adjust to Fair Value for 2018)

Investments Amortized Costs, Fair Value , Unrealized Gain (Loss)

Clemson Corp. stock

$20,200 $19,410 ($790)

Buffaloes Co. stock

$20,200 $20,700 $500

$40,400 $40,110 ($290)

Previous Fair Value Adjustment (Credit)

$1,410

Fair Value Adjustment (Debit)$1,120

7 0
3 years ago
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babunello [35]

Answer:

$19

Explanation:

The computation of the financial advantage or disadvantage is shown below:

= Sale value after processed further - cost of processed further - sale value without processed further

= $91 - $29 - $43

= $19

Simply we deducted the cost of processed further and the sale value without processed further from the Sale value after processed further so that the correct amount can come

All other information which is given is not relevant. Hence, ignored it

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It’s definitely is a huge problem. I would suggest just ignoring them and reporting them.
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3 years ago
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