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
Mandy Feng employs Jay Johnson at a salary of $35,000 a year. Feng is subject to employer Social Security taxes at a rate of 6.2
Elden [556K]

Answer: $38,097.50

Explanation:

Mandy Feng has to pay Johnson $35,000 for the year as well as various taxes. Adding all of these up is the total cost of hiring Johnson to Mandy Feng.

Calculating therefore we have,

= Salary + Social Security Taxes + Medicare Taxes + SUTA Tax + FUTA Tax

Remember, it is stated that FUTA and SUTA are applicable to only the first $7,000 of Johnson's pay.

= 35,000 + (6.2% * 35,000) + (1.45% * 35,000) + ( 5.4% * 7,000) + ( 0.6% * 7,000)

= 35,000 + 2,170 + 507.50 + 378 + $42

= $38,097.50

The total cost to Feng of employing Johnson for the year is $38,097.50

7 0
3 years ago
As a noncommissioned employee in a company, your pay rate is most likely based on
Citrus2011 [14]
If you are an employee who is not working on a commission basis, then most likely, you are working as a salary based employee. Your salary would usually be based on your going rate or your market value to the employers. Based on your caliber, the employers will decide what your salary would be. For example, if you are a fresh grad, you will start with an entry level salary while if you are a manager, you will obviously be receiving a higher salary. 
7 0
3 years ago
Read 2 more answers
A Regional Sales Manager's (RSM) direct reports are frequently added as sales team members for other sales representatives' oppo
Gre4nikov [31]
It’s c because I did it before
3 0
2 years ago
"what is the goal of testing an application before it is put into production"
Vilka [71]
To see if it works effectively, if it's safe
7 0
3 years ago
The daily sales of a peanut butter at Power's Grocery are normally distributed, with a mean of 12 jars and a standard deviation
Alenkasestr [34]

Answer:

d. 81

Explanation:

E(number of order) = E(X1) + E(X2) + 21 -4

                                = 12 + 12 + 17

                                = 41

Therefore, The store should order 81 .

3 0
3 years ago
Other questions:
  • Organizational buying criteria refer to
    11·1 answer
  • What is the law of supply
    6·2 answers
  • One of the other employees in your department department did not show up for work he will not be coming in today no one will be
    6·2 answers
  • How do short-term goals differ from long-term goals?short-term goals involve less planning than long-term goals.short-term goals
    15·1 answer
  • You are in the process of purchasing a new automobile that will cost you $27,500. The dealership is offering you either a $2500
    12·1 answer
  • Ornamental Sculptures Mfg. manufactures garden sculptures. Each sculpture requires 9 pounds of direct materials at a cost of $3
    15·1 answer
  • The balance sheet of Bonita Company at December 31, 2016, includes the following. Notes receivable $36,200 Accounts receivable 1
    12·1 answer
  • Which of the following statements is true about profits in a monopolistically competitive market? A. Most firms will earn substa
    13·1 answer
  • During a six month period, a department had planned sales of $75,000 and planned turnover of 2.6. Using the Basic Stock Method,
    9·1 answer
  • The Tax Cuts and Jobs Act allows owners of a sole proprietor or partnership to deduct up to _____ percent of the income earned b
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!