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faltersainse [42]
3 years ago
12

Solutions Inc. signs a 10-year lease for a building owned by Property Inc. that is appropriately classified as an operating leas

e by both the lessee and lessor. Lease payments are $150,000 per year. The building has an estimated useful life of 30 years with no salvage value. Assume that the building has a fair and carrying value of $2,000,000 at the commencement of the lease, what amount would Property Inc. recognize in its income statement (ignoring taxes) for the year ended December 31, 2020
Business
1 answer:
Oduvanchick [21]3 years ago
4 0

Answer: $83,333

Explanation:

Amount Property will recognize in income statement:

= Lease revenue - Depreciation

Depreciation:

= (Fair value - salvage) / useful life

= (2,000,000 - 0) / 30

= $66,667

Amount recognized in income statement:

= 150,000 - 66,667

= $83,333

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Why should positions in a company be reviewed on a regular basis
Lapatulllka [165]

Answer:

Some benefits are it improves overall performance, increases employee engagement, identifies promotion opportunities, identifies training needs, and strengthens relationships and loyalty  

7 0
3 years ago
Read 2 more answers
GDP data (billions of dollars)
Ierofanga [76]

Answer:

d. $6,610 billion.

Explanation:

Gross Domestic Product  = C + I + G + X - M

Gross Domestic Product = Personal Consumption Expenditures + Gross Private Domestic Investment + Government Spending + Exports - Imports

Gross Domestic Product = $4,750 + $900 + $1,400 + $810 - $850

Gross Domestic Product = $7,010

Net Domestic Product  = GDP - Depreciation

Net Domestic Product = $7,010 - $450

Net Domestic Product = $6,560

National Income = $6,560

Personal Income = National Income + Transfer Payments - Social Security Taxes - Corporate Profits

Personal Income = $6,560 + $700 - $600 - $50

Personal Income = $6,610 billion

5 0
3 years ago
If a tax cut of $12 billion causes real GDP to increase by $36 billion, then the tax multiplier is:________.
adelina 88 [10]

Answer:

If a tax cut of $12 billion causes real GDP to increase by $36 billion, then the tax multiplier is:________.

b) 3.

Explanation:

The tax multiplier is the effect of tax on aggregate demand, government spending, and industrial investment (GDP).  A tax cut increases the marginal propensity to consume and to save, which in their turns increase the aggregate demand and investments, which are important ingredients in the calculation of a country's Gross Domestic Product (GDP).  A tax cut also decreases government's ability to spend, which also affects the GDP negatively.  It has been established that to stimulate GDP growth, economies have relied on cutting taxes at some times.

The proportion of the tax cut to the GDP is 12: 36 in this case equals 1 : 3, therefore, the tax multiplier is 3.

6 0
4 years ago
Last year, Johnson Mills had annual revenue of $37,800, cost of goods sold of $23,200, and administrative expenses of $6,300. Th
fenix001 [56]

Answer:

Depreciation expense = 2,900

Explanation:

Our goal would be to construct the formula where depreciation expense is and then increase deepth until find something we can work:

$$Revenue - Expenses = Net Income

Expanding expenses we find depreciation expense

$$Revenue - COGS - Admin Expense - Dep Expense = Income Before Taxes

Here we don't Know Income Before taxes so we have to work that first

$$Income Before Taxes x (1-tax rate) = Net Income

Here we don't Know Net Income taxes so we have to work that first

$$Net Income - Dividends = change in Retained Earnings

Here we got the other component of the formula, so it is possible to solve for net income and from there achieve the answer

Net income = 2,810 + 700 = 3,510

Income before taxes = 3,510/0.65 = 5,400

37,800 - 23,200 - 6,300 - dep expense = 5,400

dep expense = 2,900

\ $Net income = 2,810 + 700 = 3,510 \\Income before taxes = 3,510/0.65 = 5,400\\37,800 - 23,200 - 6,300 - dep expense = 5,400\\dep expense = 2,900

7 0
4 years ago
Which of the following is not a good example of a substitute product that triggers stronger competitive pressures? A. video-on-d
Paha777 [63]

Answer:

The correct solution to either the following question seems to be Option E (Coca-Cola as a substitute for Pepsi ).

Explanation:

  • A substitute product seems to be a product of some other sector that offers integrated values to the customer as the commodity manufactured by organizations in the same organization.
  • These goods are alternatives because they meet identical market requirements and have substantial demand elasticity. Of example, the price of Pepsi seems to have a strong connection with the market of Coke.

Other possibilities aren't related to something like the scenario in question. And the latter reaction is the correct one.

4 0
4 years ago
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