1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
At Medallion Industries, variable cost per unit is budgeted to be $8.00 and fixed cost per unit is budgeted to be $5.00 in a per
natka813 [3]

Answer:

Total cost= $60,800

Explanation:

Giving the following information:

For 4,000 units:

Unitary variable cost= $8

Unitary fixed cost= $5

<u>First, we need to calculate the total fixed cost:</u>

Total fixed cost= 5*4,000= $20,000

<u>Now, we can determine the total cost for 5,100 units:</u>

Total cost= 5,100*8 + 20,000

Total cost= $60,800

6 0
3 years ago
Beau borrows $15,000 from credit center to buy a car. The lender assigns the right to receive the loan payments to debt collecti
alexandr1967 [171]

Beau gets a $15,000 loan from a credit union to buy an automobile. Debt  receives the assignment from the lender of the authority to accept loan payments. Beau can be sued by the assignee if he refuses to pay the loan.

A payment is the voluntarily made exchange of money, its equivalent, or other valuables by one party (such as an individual or business) for a loan another's goods, services, or to satisfy a legal obligation. Payer refers to the party sending the money, whereas payee denotes the recipient of the payment.

In principle, the payee is free to choose the payment method he or she will take; nevertheless, most payments regulations often compel the payer to accept the nation's legal cash up to a specified maximum. Except loan otherwise otherwise agreed by the parties, payments are typically made in the payee's native currency.

Learn more about payments here

brainly.com/question/15138283

#SPJ4

5 0
1 year ago
Frankfort Corporation purchases an investment in Bradley, Inc. at a purchase price of $9.8 million cash, representing 40% (at bo
vazorg [7]

Answer:

B. The amount of equity reported by Frankfort Corporation is $672,000

Explanation:

Equity earnings

= Frankfort's share in net income of Bradley

= 1,680,000 * 40%

= 672,000

Option B

Please comment if you face any issues****************

7 0
4 years ago
A store has two different coupons that customers can use. One coupon gives the customer $15 off their purchase, and the other co
andrey2020 [161]

Answer:

16.25;

g(f(x)) ;

76 ;

f(g(x))

Explanation:

For 15 off

f(x) = x - 15

For 35% off

g(x) = (1 - 0.35)x = 0.65x

g(x) = 0.65x

A.)

For the $15 off coupon :

f(x) = x - 15

f(x) 40 - 15 = 25

For the 35% coupon :

g(x) = (1-0.35)x

g(x) = 0.65(25)

g(x) = 16.25

B.)

Applying $15 off first, then 35%

Here, g is a function of f(x)

g(f(x))

Here g(x) takes in the result of f(x) ;

For the $140 off coupon :

f(x) = x - 15

f(140) = 140 - 15 = 125

For the 35% coupon :

g(125) = (1-0.35)x

g(124) = 0.65(125) = $81.25

C.)

x = 140

g(x) = 0.65x

g(140) = 0.65(140)

g(140) = 91

f(x) = x - 15

f(91) = 91 - 15

f(91) = 76

D.)

Here, F is a function of g(x)

f(g(x))

f(x) = (0.65*140) - 15

6 0
3 years ago
All of the following are true regarding implied agreements EXCEPT which one?
Brrunno [24]

Answer:

An implied agreement is based on a formal agreement.

Explanation:

A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.

There are different types of contract in business and these includes: fixed-price contract, cost-plus contract, bilateral contract, implied contract, unilateral contract, adhesion contract, unconscionable contract, option contract, express contract, executory contract, etc.

Mutual assent is a legal term which represents an agreement by both parties to a contract. When two parties to a contract both have an understanding of the parameters, terms and conditions surrounding a contract, it ultimately implies that they are in agreement; this is generally referred to as mutual assent.

Simply stated, mutual assent connotes agreement, acceptance and consent to a contract by both parties.

An implied contract can be defined as an informal contract that exists based on an assumption or understanding between two or more parties, rather than on terms that are formally and specifically defined.

This ultimately implies that, an implied agreement is not based on a formal agreement but on assumptions or understanding between the parties involved.

4 0
3 years ago
Other questions:
  • While taking a hike in the forest, you find some fossils in layers of sedimentary rocks whose age you later find out is said to
    11·1 answer
  • Beth, acting within the scope of her authority for the Cake Bake Shop, contracts with Eden Valley Orchards to buy an assortment
    6·1 answer
  • Ben is saving 1/5 of his weekly pay to buy a car Write and solve an equation to find what weekly pay w results in savings of $61
    14·1 answer
  • Craft, Inc. normally produces between 120,000 and 150,000 units each year. Producing more than 150,000 units alters the company'
    8·1 answer
  • Present valuelong dash—Mixed streams   Consider the mixed streams of cash flows shown in the following​ table,
    13·1 answer
  • Rewrite the following equation in standard form y=8x+2
    7·1 answer
  • For each of the following characteristics, check which types of firm it describes: a monopoly firm, a monopolistically competiti
    14·1 answer
  • Outdoor fitness posted $1.2 million in sales on account in December. Which division of the accounting department is responsible
    6·2 answers
  • O que é superavitário e deficitário? * O que é SFN? * Pesquise os principais ações deficitárias e superavitários do governo nos
    6·1 answer
  • Should Monics and Ami use a loan or their personal funds to finance their business startup? What other alternatives might they c
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!