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bija089 [108]
3 years ago
12

15. Karla Salons leased equipment from Smith Co. on July 1, 2021, in a finance lease. The present value of the lease payments di

scounted at 10% was $81,100. Ten annual lease payments of $12,000 are due each year beginning July 1, 2021. Smith Co. had constructed the equipment recently for $66,000, and its retail fair value was $81,100. What amount of interest revenue from the lease should Smith Co. report in its December 31, 2021, income statement
Business
1 answer:
quester [9]3 years ago
5 0

Answer: $3,455

Explanation:

The interest received by Smith can be calculated as;

Interest Value = Present value of lease payment * interest rate

Present Value of interest rate

Ten annual lease payments of $12,000 are due each year beginning July 1, 2021.

That means first payment has been made already. Present value is;

= 81,100 - 12,000

= $69,100

Only half a year has gone by so this will need to be reflected;

Interest Value = Present value of lease payment * interest rate

= 69,100 * 10% * 6/12

= $3,455

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Port Allen Chemical Company processes raw material D into joint products E and F. Raw material D costs $4 per liter. It costs $1
Sergeu [11.5K]

Answer:

a) Product G should be produced and sold

b) Net financial advantage      $80

Explanation:

<em>A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.  </em>

<em>Also note that all cost incurred up to the split-off point are irrelevant to the decision to process further .  </em>

                                                                                            $

Revenue after split-off point  

($9×  40 litres)                                                                 360

Revenue at the slit of point  

($4 ×   40)                                                                        <u> (160)</u>

Additional income from further processing                  200

Further processing cost ($3× 40)                                  <u>(120)</u>

Incremental income from further processing                <u> 80</u>

Incremental income from further processing = $80

a) The product F should be processed further and sold as product G. Doing so would increase the net income by $80.

b) Net advantage                                               $80

4 0
3 years ago
__________ is the function in business that is responsible for acquiring funds for the firm and managing funds within the firm.
Contact [7]

The financial manager must decide how much money is needed and when, how best to use the available funds, and how to get the required financing

<h3>What is  financial manager?</h3>

Financial managers are in charge of an organization's financial health. They create financial reports, direct investment activities, and plan for their organization's long-term financial goals.

A financial manager is in charge of maintaining the proper balance of equity and debt. Funding allocation: The next step is to allocate the funds after they have been raised. The best way to allocate funds: the size of the organizations and their ability to grow.

The finance function serves two primary functions: it provides the financial information that other business functions require to function effectively and efficiently. to assist with business planning and decision making

To know more about  financial manager follow the link:

brainly.com/question/1279044

#SPJ4

6 0
2 years ago
In the absence of government regulation or private negotiation, firms will pollute less than the economically optimal amount.
juin [17]
Wrong in absence of gov. there will be no laws to abide so essentially they can do as they please.<span />
7 0
3 years ago
A customer opens a short margin account by selling short 600 shares of XYZ stock at $80 per share and deposits the required marg
astra-53 [7]

Answer:

It will increase by 50%

Explanation:

Equity is given as: credit - short market value.

Find attached below table of solution

4 0
4 years ago
4 1/2 + 5 1/2 help fast!!!!!!!!!!!!!!!!!!!!!!!!
Trava [24]

Answer:

10

Explanation:

just add your welcome

6 0
2 years ago
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