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lawyer [7]
3 years ago
12

Knottworth Gedding Consulting leased machinery from Red Inc. on July 1, 2021. The lease was recorded as a finance lease. The pre

sent value of the lease payments discounted at 10% was $40.5 million. Ten annual lease payments of $6 million are due each July 1 beginning July 1, 2021. What amount of interest expense from the lease should Knottworth Gedding report in its December 31, 2021, income statement?
Business
1 answer:
Kobotan [32]3 years ago
6 0

Answer:

The answer is: Knottworth Gedding should report $1,725,000 as interest expense in its 12/31/2021 income statement

Explanation:

The formula for calculating the amount of interest expense is:

interest expense = discount rate x (present value - yearly payment) x time

  • Discount rate = 10%
  • Present value = $40,500,000
  • Yearly  payment = $6,000,000
  • Time = 6 months / 12 months = 0.5

interest expense = 10% x ($40,500,000 - $6,000,000) x 0.5 = $1,725,000

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A machine that cost $225,000 has an estimated residual value of $15,000 and an estimated useful life of 15,000 machine hours. Th
algol [13]

Answer:

$57,000

Explanation:

<u><em>Step 1 : Depreciation Rate</em></u>

Depreciation Rate = (Cost - Residual Value) ÷ Estimated Production

therefore,

Depreciation Rate = $14.00 per machine hour

<u><em>Step 2 : Depreciation expenses</em></u>

Depreciation expense = Depreciation Rate x Annual production

therefore

Year 1 = $42,000

Year 2 = $56,000

Year 3 = $70,000

Total    = $168,000

<em><u>Step 3 : Book Value</u></em>

Book Value = Cost - Accumulated Depreciation

                    = $225,000 - $168,000

                    = $57,000

Conclusion :

book value at the end of year 3 is $57,000

8 0
3 years ago
Global information systems pose challenges because cultural, political, and language diversity magnifies differences in organiza
svp [43]

Answer:

the correct answer is:

Typically, international systems have evolved without a conscious plan. The remedy is to define a small subset of core business processes and focus on building systems to support these processes. Tactically, managers will have to co-opt widely dispersed foreign units to participate in the development and operation of these systems, being careful to maintain overall control.

Explanation:

Companies when crossing national borders also increase the need for information. International organizations that have a centralized management must be aware of what is happening in the world.

Information Systems Directors will be required to have greater involvement in the evolution and operation of technical tasks. Their participation in the company's strategy will increase and they will have to deal with this process, since they will participate in the changes or advances of the business areas. In addition, they will have to face numerous challenges in the coming years, specifically the optimization of ICT processes and the promotion of the use of best practices (ITIL, CMMI ...), the control and application of new collaborative tools, as well as the Infrastructure rationalization. In short, they will lead the leadership in innovation and value creation of the aforementioned new technologies.

8 0
3 years ago
James lives near a university and observes that almost every student uses a cell phone. He decides to open a small shop offering
Dafna1 [17]

Answer: The correct answer is "an opportunity niche".

Explanation: James lives near a university and observes that almost every student uses a cell phone. He decides to open a small shop offering repair services for cell phones. His shop is an instant success. James has satisfied an area of need called <u>an opportunity niche.</u>

The concept of a niche of opportunity refers to the existence of a group of people or companies that have certain needs, and who have the will to meet them and economic capacity to acquire the services or goods necessary for this,<u> in this case James les He offered the good or service to meet this need.</u>

3 0
4 years ago
A key characteristic of pandemic influenzas is that they:
d1i1m1o1n [39]

Answer:

The correct option is D

Explanation:

A key characteristic of pandemic influenzas is that they have the ability to mutate rapidly. When the immunity of human increases the pandemic virus changes.

8 0
3 years ago
In the Warning Labels Scenario, the objective of introducing warning labels on cigarette packs is to reduce smoking among consum
antiseptic1488 [7]

Answer:

Learning

Explanation:

The warning label is introduced on any cigarette packet with one motives is to reduce consumption of cigarettes. It is based on the assumption that when people see the graph or label on the cigarette packet , it will lead to the desired outcome. the desired outcome includes less consumption of cigarette packets.  change of behavior that introduces between the warning sign and cigarette consumption is referred to learning.

6 0
4 years ago
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