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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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Jim drops his car off at ABC Garage to have his exhaust system repaired and takes the train to work. When he returns, he finds t
TEA [102]

Answer: Direct Excess Coverage

Explanation:

The coverage type under ABC's garagekeepers policy that would split the cost of the loss with Jim's own insurer without placing blame on ABC Garage is the direct excess coverage.

This coverage is identical to the direct primary coverage and it basically protects the vehicle of a client without taking into consideration the person that is responsible. The direct excess coverage will be paid in excess of the primary policy.

6 0
3 years ago
Which of the following organisations is most likely to sell shares for sale to invited investors?
Vsevolod [243]

Answer:

C. Private limited company

Explanation:

Ownership in a private limited company is restricted, unlike in a public limited company. The shareholders of a private limited company are usually family members, close friends, or people with a shared interest.

A private limited company can raise capital by selling additional shares. Because becoming a shareholder in a private limited company is restricted, private companies raise capital by selling shares to existing shareholders or to invited investors.

5 0
3 years ago
Disappointed. "You can't win in this business. You give
garik1379 [7]

Disappointed by airline industry and the services provided by airline industry is given below

Explanation:

1.Disappointed customerwill not only cost you money but will also create the possibility of bad word-of-mouth, which can affect future sales and money in your pocket.

2.In an airport environment, and in particular in a hub station with the high volume of connecting traffic and increased probability that you will experience some sort of service disruption, this is even more critical. When you get a sandwich you don’t like or your movie freezes or your bed is not made-up to your liking, you are upset and looking for someone to remedy the situation. Once you have established that you will not elevate your tone to match that of the irate customer, you need to do a few more things. You have to listen to the problem and try to see it through the eyes of the customer. He or she will tell you everything you need to know. The actual incident is never at the root of the behavior. The more you are able to convey your empathy for the situation the customer is in – “I was late coming in from New York and I missed the connecting flight to San Francisco, where my sister is getting married tomorrow morning.” – the greater the trust that will develop between you and the customer. More than anything, customers want someone from your company to understand the unfortunate circumstances they have been left in. They want to vent, they want to feel that you have understood and cared about their predicament, and they want a genuine apology. Lastly, they want a solution. They want to see you try to find a fix for their problems, and even if the result is not ideal, they will be brought back to a calm state by your efforts and communication. Maintain good eye contact, let them know what you’re doing, and try to deliver a solution that addresses their concerns. It is not always possible to do this, and companies generally employ a Customer Relations department to handle transactions such as refunds or compensation for situations where the employee and the customer were unable to reach an acceptable resolution at the first point of contact.

3.Essentially, an airline's hard product is the plane itself, and the airline's soft product is the service, food, and the drinks. Hard product can also be non-airplane constituents, such as lounge amenities. Consequently, the food and drinks in the lounge is soft product, while airline lounge showers are hard products.

8 0
3 years ago
The laissez faire model is inspired by the work of which economic philosopher?
Vitek1552 [10]

Laissez faire model was inspired by John Stuart Mill's book "Principles of Political Economy" (1848). This model states that the government should not be heavily involved in the market, and should have a hands off approach.

I hope this helped! :)

3 0
2 years ago
Pls help!!! will give brainly!!!!
vovangra [49]
A company that makes and sells railway cars looking for a representative and I know this because it is the best fit for his skills
3 0
3 years ago
Read 2 more answers
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