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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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Dolce Co. estimates its sales at 180,000 units in the first quarter and that sales will increase by 18,000 units each quarter ov
Nataly_w [17]

Answer:

The answer is b) $5,319,000.

Explanation:

We have cash collection in third quarter will include:

+ 40% of sales in third quarter which is made in cash;

+ 70% of the remaining 60% of credit sales in third quarter which is collected within the quarter;

+ The remaining 30% of 60% credit sales in second quarter which is collected in third quarter.

We also have:

Sales in second quarter (units) = 180,000 + 18,000 = 198,000 units => Sales revenue = 198,000 x 25 = $4,950,000 => Cash collection in third quarter = 30% x (60%x 4,950,000) = $891,000;

Sales in third quarter (units) = 198,000 + 18,000 = 216,000 units => Sales revenue = 216,000 x 25 = 5,400,000 => Cash collection in third quarter = 0.4 x 5,400,000 + 0.7 x (0.6 x 5,400,000) = $4,428,000

=> Total cash collection in third quarter = 891,000 + 4,428,000 = $5,319,000  

5 0
2 years ago
Read 2 more answers
According to the integrationist view of managing conflict, conflict is: a natural part of human existence and should be accepted
zloy xaker [14]

Answer:

inevitable, but maintaining a degree of tension can actually be helpful in keeping a group energized and creative

Explanation:

Integrationist view of managing conflict is a recent view which views conflict as inevitable in an organization or in a setting. According to this view, handling conflict the right way when they arise should be the focus. Conflicts, when handled properly would brings growth and progress in an organization, and would lead to openness and creativity.

According to the integrationist view, an organization where there is absence of conflict would most likely be a stagnant organization that is not responsive to needed change that would foster positive change and development.

Conflict is good when manage well in a constructive way, while maintaining differences in an organization.

3 0
3 years ago
Recent WTO estimates show that all countries combined exported ________ valued at $19.4 trillion and ________ valued at $5.2 tri
Musya8 [376]

Answer:

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7 0
2 years ago
On January 1, Smith Industries leased equipment to a customer for a four-year period, at which time possession of the leased ass
KiRa [710]

Answer:

The amount of the annual lease payments is $98,124.

Explanation:

This can be calculated using the formula for calculating loan amortization as follows:

P = (A * (r * (1 + r)^n)) / (((1+r)^n) - 1) .................................... (1)

Where,

P = Annual lease payments = ?

A = Amount to be recovered through periodic lease payments = Equipment cost - Residual value = $425,000 - $100,000 = $325,000

r = interest rate = 8%, or 0.08

n = Number of years of lease term  = 4

Substituting all the figures into equation (1), we have:

P = ($325,000 * (0.08 * (1 + 0.08)^4)) / (((1+0.08)^4) - 1)

P = $98,124.2614475627

Rounding to the nearest whole dollar as required, we have:

P = $98,124

Therefore, the amount of the annual lease payments is $98,124.

4 0
2 years ago
When the average unit cost of a good or service decreases as the capacity and/or volume of throughput increases, it is known as
Sergeu [11.5K]
(d.) ECONOMIES OF SCALE

Economies of scale is achieved when the average goods and services decrease whereas the volume of the goods and services increases.
Diseconomies of scale is achieved when the average unit cost of goods and services increases with the increase in the volume of goods and services.

5 0
3 years ago
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