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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 tv retailer suppose that in order to sell a number of tvs the price per unit must follow the model p=600-0.3n
Karolina [17]
Answer:
you would have to sell 2,000 tvs the price per unit each 600 to follow the model
step-by-step explanation:
p = 600 - 0.3n
600/0.3
p = 2,000n
3 0
3 years ago
Time management and world view college success
Stolb23 [73]

Explanation:

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One of the main goals of a college education is learning how to learn. In this chapter we zoom in on learning how to skillfully manage your time. To be successful in college, it’s imperative to be able to effectively manage your time.

In the following Alleyoop Advice video, Alleyoop (Angel Aquino) discusses what many students discover about college: there is a lot of free time—and just as many challenges to balance free time with study time

7 0
3 years ago
Read 2 more answers
Competition happens when two or more businesses
g100num [7]

Answer:

fight for the same benefit or gain

Explanation:

For example, if there are two firms in an industry. The goal of the two firms would be to maximise profit. To achieve this, the two firms would engage in various competitions in order to attract customers.

For example, they may differentiate their products or give discounts in order to attract customers and so increase profits

5 0
3 years ago
Raven Company has a target of earning $71,900 pre-tax income. The contribution margin ratio is 25%. What amount of dollar sales
VMariaS [17]

The number of dollar sales to be achieved to reach the goal is $287,600

<h3>What is a dollar?</h3>
  • The official money of the United States of America is the USD (United States dollar).
  • One hundred cents make up one dollar, often known as the U.S. dollar. It is distinguished from other currencies based on the dollar by the symbol $ or US$.
  • The U.S. dollar, which is considered a standard, is the most widely used money in transactions globally. In addition, it is used as the official currency in several regions outside of the U.S., while many others use it alongside their own as an unofficial currency.

We have the following details:

Fixed Cost = $ 39,800

Earning Required = $71,900

Hence

Contribution Required= Fixed Cost+Earning Required

Contribution Required = ($39,800+$71,900)

Contribution Required = $ 111,700

We use then the following formula:

Contribution Margin ratio = Contribution Margin/Sales

25%= $ 109,900/Sales

Sales = $ 109,900/25%

Sales = $287,600.

The number of dollar sales to be achieved to reach the goal is $287,600

To learn more about dollar with the given link

brainly.com/question/14982791

#SPJ4

5 0
1 year ago
Venzuela Company’s net income for 2020 is $50,000. The only potentially dilutive securities outstanding were 1,000 options issue
jarptica [38.1K]

Answer:

Answer explained below

Explanation:

GIVEN:

options issued = 1000

exercise per share = $6

market price = $20

net income = $50000

a) Diluted earnings per share

= (Total income - preference dividends) /( outstanding shares + diluted shares)

Amount paid towards shares = Options issued * Exercise price per share = 1,000 * 6 = $ 6,000

Value of options = Amount paid towards shares / Current market price = $ 6,000 /$ 20 = 300

Diluted shares = Options issued - value of options = 1000 - 300 = 700

So Diluted Earnings per share = ( 50,000) / ( 10,000 +700) = $ 4.67 per share.

b) Calculation of diluted shares 700 (same as above )

Weighted average for the period holding i.e, 3 months = 700 *3/12 = 175 shares increased during the period.

Diluted EPS = 50,000 /(10,000 +175) = $ 4.91 per share

5 0
3 years ago
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