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Lilit [14]
3 years ago
8

On January 1, 2017, Burke Corporation signed a 5-year noncancelable lease for a machine. The terms of the lease called for Burke

to make annual payments of $8,668 at the beginning of each year, starting January 1, 2017. The machine has an estimated useful life of 6 years and a $5,000 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Burke uses the straight-line method of depreciation for all of its plant assets. Burke's incremental borrowing rate is 10%, and the lessor's implicit rate is unknown. Instructions (a) What type of lease is this?
Business
1 answer:
SOVA2 [1]3 years ago
6 0

Answer:

<em>Operating Lease</em>

<em />

Explanation:

5years / 6 years = 83.33% above 75% of the useful life

the ownership reverts at the end of the lease

the lessor has risk considering the residual value is not guaranteed

We aren't given with information about the asset value to check if it is paying the entire value of the asset.

But for the information given we can conclude it is an operating lease.

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The questionnaire used in Fiedler's model to determine leadership orientation is called the
Yakvenalex [24]

The answer to the question is (B) least preferred coworker scale.

Fiedler uses this for his contingency leadership model, which describes how the best leader is the ones who showcased the best behaviors to manage the circumstances that he or she finds themselves in.

The LPC (least-preferred coworker scale) <u>measures an individual’s leadership orientation, where high scores have high human relations orientation and low scorers have high task orientation.</u>

3 0
3 years ago
Jim had a beginning inventory of $5,500. During the month of April, he purchased $4,000 of food and had an ending inventory of $
Likurg_2 [28]

Answer:

1.23

Explanation:

Inventory turnover is a ratio showing how many times a company has sold and replaced inventory during a given period.

Cost of Sales=Opening Inventory+Purchases-Closing Inventory

                      =5,500+4,000-3,800= 5,700

Average Inventory= Opening + Closing/2

                              = 5,500+3,800/2= 4,650

Inventory Turnover Ratio= <u>Cost of Sales</u>

                                            Avg Inventory

                                          = 5,700/4,650=1.23

8 0
3 years ago
sale of merchandise on account for $36,000 is subject to an 8% sales tax. a. Should the sales tax be recorded at the time of sal
aleksandr82 [10.1K]

Answer:

a.Sales tax to be recorded at the time of sales.

b.36000

c.38880

d.Sales tax payable

Explanation:

a.Because sales tax is subjected to sales so it is liability of seller to charge sales tax to customer.

b. Sales = $36000

c.Account receivable = [36000+(36000*8%)]=36000+2880=38880

       Entry: Dr  Account receivable  38880

                                                      Sales                  36000

                                                   Sales tax payable  2880

d. Sales tax payable, it is liability for a seller to refund to government treasury.

6 0
3 years ago
Would this topic be studied in microeconomics or macroeconomics: If the amount of money in the economy increases more than the a
AleksAgata [21]

Answer:

Both microeconomics and macroeconomics involve examining economic behavior, but they differ in terms of the scale of the subjects being studied.

Explanation:

Microeconomics is the field of economics that looks at the economic behaviors of individuals, households, and companies. Macroeconomics takes a wider view and looks at the economies on a much larger scale—regional, national, continental, or even global. Microeconomics and macroeconomics are both vast areas of study in their own rights.

8 0
2 years ago
Becky only eats out at Macaroni Grill and eats out 3 times per month. She receives a raise fro $31,900 to $33,500 and decided to
ololo11 [35]

Answer:

Since elasticity is 6.4, a positive figure,it is normal good and the fact that it is greater than one means it is elastic,hence option A is correct

Explanation:

The formula for income elasticity of demand is given as:

/(new quantity-old quantity)//(old price+new price)/2)/(New income-Old income)/(old income+new income)/2)

New income=$33,000

Old income=$31,900

New quantity =5 times

Old quantity=3 times

Hence=(5-3)/(3+5)/2)/(33500-31900)/(31900+33500)/2)

Elasticity=6.45

6 0
3 years ago
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