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faltersainse [42]
3 years ago
12

Cullumber Co. processes jam and sells it to the public. Cullumber leases equipment used in its production processes from Marin,

Inc. This year, Cullumber leases a new piece of equipment from Marin. The lease term is 5 years and requires equal rental payments of $15,000 at the beginning of each year. In addition, there is a renewal option to allow Cullumber to keep the equipment one extra year for a payment at the end of the fifth year of $13,000 (which Cullumber is reasonably certain it will exercise). The equipment has a fair value at the commencement of the lease of $75,077 and an estimated useful life of 7 years. Marin set the annual rental to earn a rate of return of 7%, and this fact is known to Cullumber. The lease does not transfer title, does not contain a bargain purchase option, and the equipment is not of a specialized nature. Click here to view factor tables. How should Cullumber classify this lease
Business
1 answer:
N76 [4]3 years ago
5 0

Answer: Cullumber should classify this lease as a financial lease

Explanation:

Financial Leasing is a method of financing whereby a the lessor buys asset on the lessee whom is the customer.

The above is a financial lease due to:

1. With regards to the property's estimated economic life the lease term is about 75% or more.

2. At the end of the lease term, the asset will have no alternative use to the lessor.

3. The present value with regards to the minimum lease payments is not reflected in the lease payments.

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A product has annual demand of 100,000 units. The plant manager wants production to follow a four-hour cycle. Based on the follo
vova2212 [387]

Answer: The options are given below:

A. $18.00

B. $1,036.80

C. $2.00

D. $7.20

E. $64.00

The correct option is D. $7.20

Explanation:

From the question above, we were given:

Annual demand = 100,000 units

Production = 4 hour cycle

d = 400 per day (250 days per year)

p = 4000 units per day

H = $40 per unit per year

Q = 200

We will be using the EPQ or Q formula to calculate the cost setup, thus:

Q = √(2Ds/H) . √(p/(p-d)

200=√(2x400x250s/40 . √(4000/(4000-400)

200=√5,000s . √1.11

By squaring both sides, we have:

40,000=5,550s

s=40,000/5,550

s=7.20

4 0
3 years ago
What are four important factors to remember before making a career decision?
olya-2409 [2.1K]

Answer:

To make a career decision you need to focus on four really important things.

1. You should know what interests you and what do you want to keep on pursuing in the future.

2. Evaluate your skills that are you even capable of doing that work that interests you or are you suitable for some other work.

3. Work attitudes, meaning that do you really have the attitude for the work?

4. Training and Education, this means that are you qualified enough for that specific work.

Explanation:hope it helps

7 0
3 years ago
A criticism of the National Bureau of Economic Research's business cycle dating committee is that it: Question 2 options: a) mak
lutik1710 [3]

The answer is: c) dates peaks and troughs only after the fact.

This mean that millions of dollar spents by the Bureau cannot necessarily used to address the economic problems that people currently face.

One argument to counter such criticism is that the data from the Bureau could be used to make future predicitons and prevent any mistakes in the past from occuring again in the future.


3 0
3 years ago
Read 2 more answers
Jansen Company’s general ledger showed a checking account balance of $25,120 at the end of May 2021. The May 31 cash receipts of
Alexxandr [17]

Answer:

$2,000

Explanation:

Use the format

Jansen Company’s

Bank reconciliation as of May 31, 2013.

Balance as per Bank Statement

Add Outstanding Checks

Less Unpresented Checks

Balance as per Cash Book

5 0
3 years ago
The break-even point is that level of activity where: Multiple Choice a) total revenue equals total cost. b) variable cost equal
shtirl [24]

Answer:

a) total revenue equals total cost.

Explanation:

The break-even point is the level of activity in which total revenue equals total cost. It can also be defined in terms of  units sold for a year is as the fixed expenses for the year divided by the contribution margin per unit of product. Note that exactly at the break-even point, there is no profit or loss.

Therefore, the answer is alternative a).

3 0
3 years ago
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