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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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Rory threatens physical harm to force Sam to sell his business, Toney Tours, Inc. to Rory for a below market price. This contrac
igomit [66]

Answer:

The options for this question are the following:

a. a legitimate business tactic.

b. duress.

c. fraud.

d. undue influence.

The correct answer is b. duress.

Explanation:

Coercion is a crime against the freedom of persons that involves using violence to prevent a person (the taxable person from the crime) from doing something that is not prohibited by law, or performing a behavior against his will.

The violence used in this crime, not only refers to a physical force, but also to a psychological or moral violence such as personal intimidation, as well as the use of force in things.

5 0
4 years ago
which function would be used to remove a section pf text from a document? A.cut B.copy C.paste D.undo
svp [43]
The Cut option is to select a large amount of words or a picture and then deletes. 

The Copy option is to copy a text or image.

The Paste option is to paste a text or image that you have copied (Previous answer)
                                                                                                                             The Undo option removes your recent doings.

So, Id say the answer is A - Cut
6 0
3 years ago
Tinsel Co.’s balances in allowance for credit losses were $70,000 at the beginning of the current year and $55,000 at year end.
nevsk [136]

Answer:

$50,000

Explanation:

Since Tinsel Co.’s balances in allowance for credit losses were $70,000 at the beginning of the current year and $55,000 at year end.

If during the year, receivables of $35,000 were written off as uncollectible, the amount that Tinsel should report as credit loss expense at year end is $50,000 and this is derived by

Opening balance .................................... 70,000

Add: Receivables written off .............. .35,000

less: Closing balance .............................<u>(55,000)</u>

= Amount of credit loss for the year - <u>50,000</u>

<u />

7 0
3 years ago
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The machines' second-year depreciation under the straight-line method is $26,500.
To determine the depreciation amount using the straight-line method, we have to consider the machine's useful life only as the depreciation basis. The formula used for the calculation is: (Asset value-salvage value)/asset's useful life.
5 0
3 years ago
Comprehensive problem 5 part
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3 years ago
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