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Firdavs [7]
3 years ago
6

A company leases trucks and properly classifies the leases as finance leases. The leases have a 10-year term, and the lease calc

ulations were done three years ago when interest rates were lower. Which of the following is the appropriate accounting treatment, if any, for the application of the fair value option to lease transactions?A. Recognize the change to fair value accounting with an unrealized loss in the income statement.B. Leases are not eligible for the fair value option.C. Recognize the change to fair value accounting with an unrealized loss in accumulated other comprehensive income.D. Recognize the change to fair value accounting with a cumulative adjustment to beginning retained earnings.
Business
1 answer:
pochemuha3 years ago
6 0

Answer:

D. Recognize the change to fair value accounting with a cumulative adjustment to beginning retained earnings.

Explanation:

In the situation whereby the 10 year term of the leased trucks value has adjusted leading to the increase in the interest rate of the lease, the best option would be recognize the change to fair value with its cummulative adjustment to beginning of the retained earnings.

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Which of the following are the three characteristics that an advertising appeal should have? A. humorous, memorable, and interes
mihalych1998 [28]

Answer: (E) Meaningful, believable, and distinctive

Explanation:

  The advertising appeal is one of the type of communication process in which the the various types of organizations and the companies using this business strategy for promoting their brands and the products in the market.

 The main objective of the advertising appeal is to creating awareness and inform customers or users about the new brands, various types of products and the services in the market.  

 According to the given question, there are mainly three type of characteristics of the advertising appeal that are as follows:

  1. Meaningful
  2. Distinctive
  3. Believable  

 The main aim of the meaningful characteristic is to make the product more interesting to the customers by highlighting its various types of meaningful advantages. Distinctive makes the product unique from all the products available in the market and believable appeal ensure the customer about the accurate delivery of the products.

 Therefore, Option (E) is correct answer.

6 0
3 years ago
John is a self-employed computer consultant who lives and works in Dallas. John paid for the following activities in conjunction
Dominik [7]
Definitely none of these
8 0
2 years ago
(last word) based on economic theory and research on tuition costs and student borrowing, the best way to reduce tuition costs f
Rina8888 [55]

Answer:

Increase Subsidies for student loans.

Explanation:

By increasing subsidies on student loan, student can acquire higher loans to pay off tuition fees because they are sure of paying back less loan and lesser interest on the loans.

7 0
3 years ago
Ms. Pear owned 1,000 shares of YZ Corporation which she had purchased in Year 1 at a cost of $12 per share. In Year 3, she recei
Neko [114]

Answer:

$2,000

Explanation:

Ms. Pear invested $12,000 in 1,000 shares of YZ Corporation. After the dividends she received and the stock split, she ended with 2,400 shares. Since she sold 400 shares, it represents 16.67% of her total shares (= 400 / 2,400). To determine the basis for the 400 shares she sold all we need to do is multiply 16.67% x $12,000 (initial investment) = $2,000

7 0
3 years ago
Kant Corporation retires its $500,000 face value bonds at 102 on January 1, following the payment of interest. The carrying valu
9966 [12]

Answer and Explanation:

The Journal entry is shown below:-

Bonds payable Dr, $500,000

Loss on retirement of bonds Dr, $28,750  

($510,000 + $18,750 - $500,000 )

           To Cash $510,000 ($500,000 × 1.02)

          To discount on bonds payable $18,750 ($500,000 - $481,250)

(Being redemption is recorded)

Here we debited the bonds payable and loss on retirement of bonds as it decreased the liabilities and increased the loss and we credited the cash and discount on bonds payable as it decreased the assets and increased the liabilities

8 0
3 years ago
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