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Inessa05 [86]
3 years ago
7

On 1/1//2015, XYZ leases a machine from Super LeaseCo for four years. At the end of the lease term, title passes to XYZ. Payment

s of $4,000 are made at the BEGINNING of each year 1/1/2015, 12/31/15, 12/31/16, AND 12/31/17). The machine has a useful life of 6 years, with no salvage value. XYZ uses straight-line amortization. Lessee interest rates is 6%. Fair value of machine is $14,692 which is the price that Super LeaseCo. paid for the machine. Assumption 1 - Record all required entries for XYZ for 2015-2020.

Business
1 answer:
MaRussiya [10]3 years ago
4 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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On January 1, 2020, Pina Corporation sold a building that cost $263,240 and that had accumulated depreciation of $101,140 on the
Firlakuza [10]

Answer:

Gain from sale = $23,067

Explanation:

the none interest bearing note must be recorded at present value:

present value of the note = face value / (1 + r)ⁿ

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  • n = 3

PV = $253,240 / (1 + 11%)³ = $185,167

the note receivable must be recorded at $253,240, but $68,073 will be recorded as interest revenue.

the journal entry for the transaction should be:

January 1, 2020, sale of a building:

Dr Notes receivable 253,240

Dr Accumulated depreciation 101,140

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8 0
3 years ago
Gelb Company currently manufactures 43,000 units per year of a key component for its manufacturing process. Variable costs are $
Mashutka [201]

Answer:

It is cheaper to buy the component. At this level of production by $40,750.

Explanation:

Giving the following information:

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Variable costs are $2.95 per unit

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Unavoidable fixed costs= $77,500 per year.

The company is considering buying this component from a supplier for $3.70 per unit.

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Production:

Total cost= 43,000*2.95 + 73,000= $199,850

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Answer:

The correct answer is (C)

Explanation:

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velikii [3]
The Great Depression, the recession, I don't know the other one.
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3 years ago
What is the relationship between the gross public debt and the net public​ debt?
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The gross debt is the total amount of debt the gov. has issued . the difference is that the net debt does not include debt owned by the gov. to itself
3 0
3 years ago
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