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Marianna [84]
4 years ago
10

On December 30, Year 3, Ames Co. leased equipment under a finance lease for 10 years. It contracted to pay $40,000 annual rent o

n December 31, Year 3, and on December 31 of each of the next 9 years. The lease liability was recorded at $270,000 on December 30, Year 3, before the first payment. The equipment’s useful life is 12 years, and the interest rate implicit in the lease is 10%. In recording the December 31, Year 4, payment, by what amount should Ames reduce the lease liability?
Business
1 answer:
liraira [26]4 years ago
6 0

Answer:

Ames should reduce the lease liability by $17,000

Explanation:

There are two components of lease payment:

  1. Interest expense
  2. Amount paid against lease obligation.

Annual Lease = $40,000

Carrying amount at the beginning of the period = ( $270,000 – $40,000 ) = $230,000

Interest is calculated by multiplying the carrying amount with annual interest rate.

Interest expense  = $230,000 x 10% = $23,000

Reduction in liability is the net of Lease payment and Interest expense for the period.

Reduction in lease liability = $40,000 - $23,000 = $17,000

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What are three locations where you can view your Focused Review for a practice or proctored assessment?
Nataly_w [17]

Answer:

The three location where one can view his or her Focused Review for the purpose of practicing or proctored assessment are:

i "Improve" tab

ii. "My Results" tab

iii. "Recent Activity"

Explanation:

5 0
4 years ago
Alpha and Beta are partners who share income in the ratio of 1:2 and have capital balances of $42,600 and $88,200, respectively,
Naily [24]

Answer:

The amount of loss to Alpha is $17700.

Explanation:

Given income sharing ratio = 1:2

The capital balance of Alpha = $42600

The capital balance of Beta = $88200

Total capital balance (Alpha + Beta) = $42600 + $88200 = $130800

The cash balance available = $77700

Loss = 130800 – 77700 = $ 53100

The share of loss allocated to Alpha:

= 53100 \times \frac{1}{3}  \\= $17700

Therefore, the amount of loss to Alpha is $17700.

6 0
3 years ago
Which statement is true of employee empowerment? A) Managers should ensure that employees are not linked to resources outside th
Snowcat [4.5K]

Answer:

B) Jobs must be designed to give employees the necessary latitude for making a variety of decisions.

Explanation:

The employee empowerment aims to provide resources and skills necessary for employees to have freedom and make their own decisions.

The organizational structure of a company will directly influence how employees are motivated or not to make certain decisions. In companies with a horizontal organizational structure, which is more flexible, there is an incentive for employees to make their decisions, which is a process that encourages innovation, engages employees, makes employment more motivating and valued, reduces response time of a decision and makes the decision-making process less bureaucratic and rigid.

5 0
3 years ago
Former GVO marketing director, David Lieberman, tells a story about a new product idea proposed by a creative person. The idea w
Sati [7]

Answer:

The correct answer is C) behavioral barrier.

Explanation:

Organizational barriers can be any number of things that range from physical elements to individual and group attitudes. They don't have to be important elements. They can be as simple as an extended absence of employees or as important as the acquisition of an organization by a foreign government. They can even be perceptions that have no basis in reality. The key to identifying barriers and eliminating their constrictive effect is to carefully identify all aspects of them.

4 0
3 years ago
If a government wants to pursue an expansionary fiscal policy, then a tax cut of a certain size will be more expansionary when t
zvonat [6]

Answer:

Economy's marginal propensity to save (MPS) is small.

Explanation:

Fiscal policy in economics refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.

For instance, measuring the time between when a fiscal policy is implemented and when the people feel its impact in the society refers to a lag.

A fiscal policy affects combined demand through changes in government policies, spending and taxation which eventually impacts employment and standard of living plus consumer spending and investment. Monetary policy affects the money supply in an economy, which then creates an impact on interest rates and the inflation rate.

Basically, an expansionary fiscal policy comprises of rebates, transfer payments, tax cuts, as well as an increase in government spending on the improvement of infrastructure and other public projects.

Hence, if a government wants to pursue an expansionary fiscal policy, then a tax cut of a certain size will be more expansionary when the Economy's marginal propensity to save (MPS) is small.

4 0
3 years ago
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