1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Anastasy [175]
3 years ago
13

On January 1, 2012, Porter Corporation signed a five-year noncancelable lease for certain machinery. The terms of the lease call

ed for:
1. price to make annual payments of $60,000 at the end of each year (starting on December 31, 2012) for five years. Porter must return the equipment to the lessor end of this period.
2. the machinery has an estimated useful life of 6 years and no expected salvage value.
3. Porter uses the straight-line method of depreciation for all of its fixed assets.
4. Porter's incremental borrowing rate is 8%. 5. the fair value of the asset at January 1, 2012, is $275,000.

At January 1, 2012, Porter should record an asset and liability with respect to the equipment lease equal to ________.
Business
1 answer:
SashulF [63]3 years ago
7 0

Answer:

$275,000

Explanation:

The <em>lease liability</em> is recorded at the Present Value amount of the lease payments based on the incremental borrowing rate.

The <em>lease asset</em> is recorded at the same amount of lease liability including other costs of placing the assets in location and condition intended for use by management.

You might be interested in
Suppose a new technology makes it possible to perfectly predict the weather on your computer. As a result, there isn't as much o
Zinaida [17]

Answer:

demand of

Fall

decrease

Explanation:

Here are the options to this question:

1.expect the (supply of/ demand of )

2.forecasters to (increase/ decrease)

3. weather forecasters to (decrease/ increase)

The new technology would reduce the need for weather forecasters. So t.v. stations and radios would no longer employ weather forecasters and might even lay off some forecasters. So the demand for forecasters would fall.

Due to the reduced demand for forecasters, there would be a large number of unemployed forecasters with no one willing to employ them. This would lead them to a reduction in their salary. When supply exceeds demand, prices fall.

I hope my answer helps you

6 0
3 years ago
The idea that an economy can get stuck in either an unemployment equilibrium or an inflation equilibrium is most closely associa
satela [25.4K]

Answer: D

Explanation:

the idea of coordination failures

8 0
3 years ago
Read 2 more answers
The term relevant range as used in cost accounting means the range over which: Group of answer choices Costs may fluctuate. Rele
natali 33 [55]

Option D. The term relevant range is the range over which  Cost relationships are approximately linear.

<h3>What is relevant range?</h3>

This is the term that is used to refer to the assumption that the cost relationships are valid.

What this means is that the existing relationship between cost and any activity are linear, in a straight line.

Read more on accounting here:

brainly.com/question/26690519

#SPJ1

8 0
2 years ago
American Chemical Company manufactures a chemical compound that is sold for $52 per gallon. A new variant of the chemical has be
Shalnov [3]

Answer:

If American produces the new compound, profit will increase by $88,000

Explanation:

increase in selling price = selling price of new variant of chemical - selling price of chemical compound

                                         = $83 - $52

                                         = $31

Net increase in profit = total increase in selling price - additional processing cost

                                    = $31*8000 - $160000

                                    = $248000 - $160000

                                    = $88,000

Therefore, If American produces the new compound, profit will increase by $88,000.

net increase in profit =

3 0
3 years ago
During the year,Liptom Company made an entry to write off a $4,000 uncollectible account. Before this entry was made, the balanc
Andru [333]

Answer:

$55,500

Explanation:

The computation of the net realizable value after the write off entry is show below:

The credit balance in allowance with terms to bad debts is

= $4,500 - $4,000

= $500

Now the net realizable value is

= ($60,000 - $4,000) - ($4,500 - $4,000)

= $56,000 - $500

= $55,500

Hence, the same is to be considered

7 0
3 years ago
Other questions:
  • When a soft drink company introduced a new peach-flavored drink in a market saturated with colas, it immediately found favor wit
    14·1 answer
  • The expense recognition (matching) principle, as applied to bad debts, requires: Multiple Choice That bad debts not be written o
    15·2 answers
  • Because the demand for wheat tends to be inelastic. True or False
    13·1 answer
  • Five independent projects are available for a small manufacturing company. Which projects should be selected if initial investme
    9·1 answer
  • Which type of air mass forms over the ocean near the equator
    15·1 answer
  • Marla Staples is concerned with identity theft. One of the ways that she can protect her information from leaking out to the wro
    7·1 answer
  • ANYONE DOWN TO VIBE WITH MW ON SNAP ILL ADD BACK!!!!
    12·2 answers
  • The payment of accounts payable would
    11·2 answers
  • What business entertainment expenses are deductible
    12·1 answer
  • The trial balance prepared after all closing entries have been journalized and posted is called the?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!