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Eduardwww [97]
2 years ago
10

Pizza ltd. leased equipment from Tasty Company under a four-year lease requiring equal annual payments of sh.86, 038, with the f

irst payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4-year useful life and no residual value. If Pizza ltd.’s incremental borrowing rate is 10% and the rate implicit in the lease (which is known by Pizza ltd.) is 8%, what is the amount recorded for the leased asset at the lease inception?
Business
1 answer:
adoni [48]2 years ago
8 0

Answer:

Sh. 300,001.60

Explanation:

Note: <em>Missing word has been attached</em>

Particulars                                                     Amount

Annual payments                                          86,038

x PV Annuity due 8%, 10 periods                 3.48685

Amount recorded for the leased asset      300,001.60

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[The following information applies to the questions displayed below.]
makvit [3.9K]

Answer:

A. Dr Raw meat Inventory 120,000

Cr Cash 120,000

B. Dr Indirect Materials $186,000

Cr Raw Materials $186,000

C. Dr Direct Materials $15,000

Cr Raw Materials $15,000

Explanation:

Preparation for the journal entries for the above transactions for the month of May.

Dr Raw meat Inventory 120,000

Cr Cash 120,000

(Being to record Raw materials purchases for cash)

B. Dr Indirect Materials $186,000

Cr Raw Materials $186,000

($201,000 - 15,000)

C. Dr Direct Materials $15,000

Cr Raw Materials $15,000

8 0
2 years ago
Abe owns a dog; the dog's barking annoys Abe's neighbor, Jenny. Suppose that the benefit of owning the dog is worth $200 to Abe
umka2103 [35]

Answer:

Jenny pays Abe $300 to give the dog to his parents who live on an isolated farm

Explanation:

The answer is already stated within the question, but I'll provide  the explanation.

In order to reach a solution, Jenny would have to offer Abe an amount to get rid of the dog that is more than Abe's benefit of owning the dog, which is $200.

On the other hand, since Jenny bears a cost of $400 from the bark, she would only be willing to spend as much as $400 to resolve the situation. Therefore, the acceptable range for the amount of the agreement for both parts is:

$200 < X < $400.

Since $300 is within that range. Jenny paying Abe $300 to give the dog to his parents is a possible solution.

6 0
3 years ago
Read 2 more answers
After a product recall triggered by salmonella contamination and repeated violation citations by the health department, Mc Burge
Julli [10]

Answer:

McBurger Inc.

Introduction of Healthylicious-n-Safe

I think that McBurger should launch this new product.  If McBurger can capture more than 28% of the meatless burger market, it can break-even in 12 months and start earning huge profits in 18 months when there will be nil promotion costs.

Explanation:

Annual projected market sales of meatless burger = 1,250,000 boxes

Content of each box of Healthylicious-n-Safe = 8 burgers

Fixed cost per month = $35,000

Total annual fixed cost = $420,000 ($35,000 * 12)

Estimated variable cost of making one burger = $0.875

Estimated variable cost of a box of 8 burgers = $7 ($0.875 * 8)

Cost of promotional campaign in the first 12 months = $275,000

Total annual fixed cost including promotions = $695,000

Expected selling price per box of Healthylicious-n-Safe = $9

Estimated variable cost per box of Healthylicious-n-Safe    7

Contribution margin per box of Healthylicious-n-Safe =   $2

Sales units required to break-even = Total fixed costs/Contribution margin per box

= $695,000/$2 = 347,500 boxes

This sales units break-even point represents 27.8% of the meatless burger market (347,500/1,250,000 * 100)

4 0
2 years ago
Forms of Business Organization
chubhunter [2.5K]

Answer:

<h2>Forms of Business Organization </h2>

1. The basic concepts of financial management are the same for all businesses, regardless of how they are organized. However, a firm's legal structure affects its operations.

The main forms of business organizations are: (1) proprietorships, (2) partnerships, (3) corporations, and (4) limited liability companies (LLCs) and limited liability partnerships (LLPs). In terms of numbers, most businesses are______proprietorships_. However, based on the dollar value of sales, most business is done by_corporations____.

Businesses are frequently started as__Limited Liability Companies____and then converted to_Corporations_____when their growth results in disadvantages outweighing advantages.

2. A proprietorship has three important advantages: (1) It is easily and inexpensively formed, (2) it is subject to_less____government regulations, and (3) it is subject to lower income taxes than are_corporations_____.

However, a proprietorship also has three important limitations: (1) A proprietor has_unlimited_____personal liability for the business' debts. (2) The life of the business is limited to the life of the individual who created it. (3) A proprietorship has difficulty obtaining large sums of capital so proprietorships are used primarily for small businesses.

3. A partnership has two important advantages: (1) It is easily and inexpensively formed and (2) its income is allocated on a pro rate basis to partners and taxed on a(n)_individual____basis so the partnership avoids higher_corporate____income taxes. A partnership has four important disadvantages: (1)_Unlimited_____personal liability, (2)_Limited____life, (3) difficulty of transferring ownership, and (4) difficulty of raising large amounts of capital.

4. A corporation has the following advantages: (1)_Unlimited____life, (2) ownership that is easily transferred through the exchange of stock, (3)_Limited____liability, and (4) can_easily_____raise large amounts of capital to operate large businesses. Its disadvantages are: (1) Corporate earnings may be subject to_corporate_____taxation and (2) setting up a corporation and filing required state and federal reports is complex. Large corporations are known as C corporations. However, as an aid to small businesses Congress created S corporations.

5. Limited liability corporations (LLCs) and limited liability partnerships (LLPs) have limited liability protection like_corporations_____but are taxed like__proprietorships____. Investors in an LLC or LLP have votes in proportion to their ownership interest. LLCs and LLPs have been gaining in popularity, but large companies still find it advantageous to be_formed into_____corporations because of advantages in raising capital for growth.

Explanation:

The above are forms of business organization through which investors can realize their investment dreams.

6 0
3 years ago
Andrea won the miss illinois beauty pageant the year she graduated from college. knowing this, the amount of money she will earn
xxMikexx [17]
Andrea won the Miss Illinois beauty pageant the year she graduated from college. Knowing this, the amount of money she will earn over the course of her adult lifetime is most likely to be MORE THAN that of her peers.

Since she has already won a beauty pageant, it is absolutely clear that she will ear more money than her peers. She will be a unique student among her peers. She might be offered modelling or ad films because of her victory.
5 0
3 years ago
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