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mart [117]
3 years ago
10

Lease A does not contain a bargain purchase option, but the lease term is equal to 90% of the estimated economic life of the lea

sed property. Lease B does not transfer ownership of the property to the lessee by the end of the lease term, but the lease term is equal to 75 percent of the estimated economic life of the leased property. How should the lessee classify these leases?
Business
1 answer:
AleksandrR [38]3 years ago
5 0
Both of these leases should be classified as a capital lease. A capital lease is defined as a lease in which the person who is leasing the asset only finances the leased asset, all of the other rights of ownership are transferred to the person who is taking out the lease. This makes the lease a fixed asset because it is temporarily being used.  
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In the United States, about $5,200 per person per year is spent on health care, while in Britain the amount is about half that.
riadik2000 [5.3K]

Answer:

The answer is: C) The money spent on health care in the United States is not being used effectively.

Explanation:

American citizens spend twice as much as British citizens on health care per year. Even if certain diseases are more common in the US than in Britain, the overall cost of health care is too expensive in the US (100% difference) to be explained by a greater prevalence of just one or two diseases.

The only possible explanation is that the American health care system is not as efficient as the British health care system, therefore health care is more expensive.

4 0
3 years ago
Bailey Corporation budgets on an annual basis for its fiscal year. Three pounds of raw material are needed to produce each unit
vlabodo [156]

Answer:

500,000 units

Explanation:

The Production Budget can be used to determine the number of units that needs to be manufactured in order to meet Sales and Inventory targets as follows :

Production Budget for Next Year

Sales                                                                             510,000

Add Closing Finished Goods Inventory                      60,000

Total                                                                             570,000

Less Opening  Finished Goods Inventory                 (70,000)

Budgeted Production                                                 500,000

Therefore,

The number of units it would have to manufacture during the year would be 500,000

6 0
2 years ago
Suppose the firm faces a price of ​$49​, an average variable cost of ​$26​, and has an average fixed cost of ​$5. In the​ short-
pychu [463]

Answer:

A) can cover all its​ costs, ⇒ C) and will have a profit per unit of ​$18.

Explanation:

The company sells its products at $49 per unit, and each unit's total cost is $31 (= $26 variable costs + $5 fixed costs), therefore the company is covering all its costs and making an $18 profit (= $49 - $31) for each unit is sells.

3 0
3 years ago
There are six printers at "Today's news" newspaper, each printing at the same constant rate. Working together, the six printers
MrRissso [65]

Answer:

Explanation:

Given:

Today:

Number of printers = 6

Work duration = 12 hours

Tomorrow:

Work duration = 8 hours

At the same rate of printing,

If 6 printer were used to print newspapers for 12 hours.

Only 1 printer will work for 12 × 6 hours at the same rate

But is the printers were 8, (12 × 6)/8

= 9 printers.

Initial number of printers = 6 printers

Additional printers to be purchased = 9 - 6

= 3 printers

3 0
3 years ago
Read 2 more answers
A corporation purchases 10,000 shares of its own $10 par common stock for $35 per share, recording it at cost. What will be the
gregori [183]

Answer:

Decrease, $350000.

Explanation:

Given: Corporation purchases 10000 shares for $35 per share.

Now, calculating cost of common stock.

Cost of common stock purchased = 10000\times 35= \$ 350000

∴ Cost of common stock purchased= $350000

∴ If there is increase in expense and dividend payout to common and preferred shareholder, it lead to decrease in stockholders´ equity.

3 0
3 years ago
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