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Law Incorporation [45]
3 years ago
7

On January 1, 2018, Johnstone leased an office building. Terms of the lease require Johnstone to make 15 annual lease payments o

f $134,000 beginning on January 1, 2018. A 10% interest rate is implicit in the lease agreement. At what amount should Johnstone record the lease liability on January 1, 2018, before any lease payments are made?
Business
1 answer:
Assoli18 [71]3 years ago
3 0

Answer:

LEASE LIABILITY: 1,121,136

Explanation:

the lease liaibility will be the present value of an annuity-due (payment at beginning of the period)

C \times \frac{1-(1+r)^{-time} }{rate}(1+r) = PV\\

C 134,000

time 15

rate 0.1

134000 \times \frac{1-(1+0.1)^{-15} }{0.1} (1+0.1)= PV\\

PV $1,121,136

The lease laibility will be for 1,121,136

interst expense will be recognize over time against the lease liability and the payment decrease the liability. at the end of the agreement the lease liaiblity will be zero as there are no pending payment.

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Bette and Jamal are partners at a management consulting firm.
kodGreya [7K]

Answer:

Jamal

Explanation:

Given that

Number of required slides = 50 slides

Creating slides Per hour = 15 slides

Bill amount per hour = $750

So by considering the above information, Bette's opportunity cost of creating slides would be

= Bill amount per hour ÷ creating slides per hour

= $750 ÷ 15 per hour

= $50

For making 50 slides, the opportunity cost would be

= $50 × 50 slides

= $2,500

And, Jamal opportunity cost is 30% lower, so it would be  

= $50 - $50 × 30%

= $50 - $15

= $35

And, the billing rate is 25% higher, so it would be

= $750 + $750 × 25%

= $750 + $187.50

= $937.50

So in one hour, it would be

= $937.50 ÷ 35 slides

= 26 slides

Based on the creating slides, the Jamal gains a competitive advantage over Bette

4 0
3 years ago
Which one of the following is a primary market transaction?
aleksandr82 [10.1K]

Answer:

B. a dealer buying newly-issued shares of stock from a corporation

Explanation:

Primary market transactions are IPOs or any other issuance of securities, e.g. bonds. A security is traded only once in a primary market, since after the security is issued for the first time, any other transection will be made on the secondary market. There is no physical difference between a primary or secondary market, e.g. the NYSE makes both primary and secondary transactions.

6 0
3 years ago
The nominal exchange rate is A. the difference between the interest rate in one country and the interest rate in another country
Veronika [31]

Answer:

Option (B) is correct.

Explanation:

The nominal exchange rate refers to the rate at which there is a buying and selling of goods and services among the countries. It is the amount of home currency that are needed to purchase a unit of foreign currency.

For example: A resident of India would need 75 Indian rupees to purchase a dollar of United States. Therefore, the nominal exchange rate between the India and the United States is as follows:

1 US dollar = Rs. 75

5 0
3 years ago
Assuming that periodic inventory records are kept, the ending inventory on a LIFO basis is Group of answer choices $16,440. $17,
Troyanec [42]

Answer:

$16,440.

Explanation:

Please find attached the data used in answering this question

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.

the ending inventory would consist of earlier purchased goods

total sales is 20800

total purchases = 26,000

ending inventory = 26,000 - 20800 = 5200

this price of the ending inventory = 3200 x 3.2) + (2000 x 3.1) = $16,440.

                               

7 0
3 years ago
"what do you think is more important for a good it professional: strong technical skills or strong people skills?"
Troyanec [42]
Strong people skills. You could have the greatest worker ever but if he can not work well with people. That person will never improve or help anyone.
4 0
4 years ago
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