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ivann1987 [24]
3 years ago
10

On January 1, 2021, Ivanhoe Corporation signed a 10-year noncancelable lease for certain machinery. The terms of the lease calle

d for Ivanhoe to make annual payments of $230000 at the end of each year for 10 years with the title passing to Ivanhoe at the end of this period. The machinery has an estimated useful life of 15 years and no salvage value. Ivanhoe uses the straight-line method of depreciation for all of its fixed assets. Ivanhoe accordingly accounted for this lease transaction as a financial lease. The lease payments were determined to have a present value of $1543,319 at an effective interest rate of 8%. With respect to this lease, Ivanhoe should record for 2021:
a. lease expense of 200,000.
b. interest expense of 89,468 and depreciation expense of 76,136.
c. Interest expense of 107,361 and depreciation expense of 89, 468.
d. interest expense of 91,363 and depreciation expense of 134,202.
Business
1 answer:
Greeley [361]3 years ago
4 0

ha IvAnHoe

yeah sorry i dont know the answer i just thought it was funny lol

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On January 1, 2016, Tonika Company issued a four-year, $10,000, 7% bond. The interest is payable annually each December 31. The
disa [49]

Answer:

Option C is correct one.

Interest expense 773

Discount on bonds payable 73

Cash 700

Explanation:

2016 interest expense  = initial issue price, which is the 1/1/2014 book value x the market (effective) interest rate

= $9,668 x 08

= $773

Cash interest payment

= maturity value of the bond x the stated interest rate = $10,000 x .07

= $700  

Amortization of discount on bonds payable

= interest expense - interest cash payment

= $773 - $700.

= $73  

3 0
3 years ago
Refer to the information in Homework 2 Question 2: Ross derives utility from only two goods, chocolates (x) and donuts (y). His
Margaret [11]

Answer:

The total effect is 35 out of which income effect is 15 and substitution effect is 20.

Explanation:

Ross has an income of $1440.

The price of chocolates (Px) is $10 and donuts (Py) is $9.

The utility function is given as

U = 0.5xy

Before price rise, Budget line:

1440 = 10x + 9y,

Consumption is optimal when

\frac{MUx }{ MUy} = \frac{Px}{Py} = \frac{10}{9} = 1.11

0.5y / 0.5x= 1.11

y = 1.11x

Substituting in budget line,

1440 = 10x + 9y = 10x + 9(1.11x)

1440 = 10x + 9.99x

19.99x = 1440

x = 72

y = 1.11x = 79.92 = 80

After price rise,

Py = 16.

New budget line:

1440 = 10x + 16y,

Price ratio

\frac{Px}{Py } =  /

=\frac{10}{16}

= 0.625

And,

\frac{MUx}{Muy} = \frac{0.5y}{0.5x} = 0.625

\frac{y}{x}  = 0.625

y = 0.625x

Substituting in new budget line: 1440 = 10x + 16y

1440 = 10x + 16(0.625)x

1440 = 20x

X = 72

Y = 0.625x = 45

So, total effect (TE)

= Decrease in consumption of y

= 80 - 45

= 35

With previous (x, y) bundle,

U = 0.5xy

U = 0.5 x 72 x 80

U = 2880

Keeping utility level the same & substituting,

y = 0.625x in utility function:

28800 = 0.5xy

2880 = 0.5\ \times\ 0.625x

2880 = 0.3125x^{2}

x^{2}  = \frac{2880}{0.3125}

x^{2} = 9216

x = \sqrt{9216}

x = 96

Now, putting the value of x,

y = 0.625\ \times\ x

y = 0.625\ \times\ 96

y = 60

Substitution effect (SE)

= 80 - 60

= 20

Income effect

= TE - SE

= 35 - 20

= 15

8 0
3 years ago
How can we build up strong analytical skill discuss​
yan [13]

Answer:

hope help you

Explanation:

Here are several ways you can improve your analytical skills:

Read more. An important part of being analytical involves being alert and remaining stimulated. ...

Build your mathematical skills. ...

Play brain games. ...

Learn something new. ...

Be more observant. ...

Join a debate club. ...

Take an exercise class. ...

Keep a journal.

4 0
3 years ago
Excess supply will result in suppliers ________ prices, which encourages demanders to demand ________ .
Mandarinka [93]

Answer:

The correct words for the blank spaces are: lowering; more.

Explanation:

In case firms have an excess of supply, they will rather sell their products at a lower price than keeping them stored for loss. According to the supply and demand theory, <em>if the prices decrease, so will the quantity supplied but the quantity demanded will rise</em>.

8 0
3 years ago
If the price of milk rose to $6 per gallon, consumers would purchase fewer gallons of milk than if the price were $2 per gallon.
Law Incorporation [45]

Answer:

the law of demand

Explanation:

as the law of demand states that the higher the price the lower the quantity that will be demanded, and the lower the price the higher the quantity that will be demanded

4 0
3 years ago
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