Answer:
Substantially all of the fair value of the asset
Explanation:
A lease is a contractual arrangement by which a lessor provides a lessee the right to use an asset for a specified period of time.
A financial leases is when a lessee has, in substance, purchased the lease asset, assumed when one of five classification is met. which are
1. The agreement specifies that ownership of the asset transfer to the lessee
2. The agreement contains a purchase option that the lessee is reasonably certain to exercise (bargain purchase option)
3. The lease term is for "major part" of the remaining economic life of the underlying asset.
4. the present value of the lease payments equals or exceeds "substantially all" of the fair value of underlying asset.
5. The underlying assets is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term.
So you know how to get the most profit from sales
Answer:
The holding period rate if return of an investment/project.
The correct answer is B Explanation:
The holding period rate of return of an investment/project is calculated as final value minus initial cost plus income divided by initial cost.
Answer:
The net income is $39,060
Explanation:
The computation of the net income is shown below:
As we know that
net income = Sales revenue - expenses
where,
Sales revenue is
= Camping fees revenues + general store revenues
= $139,400 + $30,600
= 170,000
And, the expenses is $130,940
So, the net income is
= $170,000 - $130,940
= $39,060
hence, the net income is $39,060
Answer:
In this situation:
c. Discount must compensate Contractors for its lost profit.
Explanation:
- The option A is not correct in our situation as there is not agreement of local zoning authority with either the contractors or Discount Retail, Inc. so they are not breaching any contract.
- The option b is not correct as contract is not discharged that mean the contract is not ended.
- The option c is correct as now Discount Retail Inc. must compensate the contractor for its profit loss as they will not be building the store and they will have experienced a loss.
- Contractors are in breach of contract as the zoning authority has changed the law not to build the store at that location but not the contractors.