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Andreyy89
3 years ago
14

Francisco leased equipment from Julio on December 31, 2021. The lease is a 10-year lease with annual payments of $159,000 due on

December 31 of each year beginning December 31, 2021. The present value of the lease payments is $1,006,192. Francisco's incremental borrowing rate is 14% for this type of lease. The implicit rate of 12% is known by the lessee. What should be the balance in Francisco lease liability at December 31, 2022
Business
1 answer:
vodomira [7]3 years ago
4 0

Answer: $789855

Explanation:

Initial liability = $1,006,192

Less: Payment = $159,000

Liability = $847192

× Implicit rate 12%

Interest = 12% × $847192 = $101663

Then, reduced balance will be:

= Payment - Interest

= $159,000 - $101663

= $57337

Therefore, Francisco lease liability at December 31, 2022 will be:

= $847192 - $57337

= $789855

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A company purchased factory equipment on January 1, 2019 for $160,000. It is estimated that the equipment will have a $20,000 sa
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Answer:

10000

Explanation:

6 0
3 years ago
A competitive car wash currently hires 4 workers, who together can wash 80 cars per day. The market price of car washes is $5 pe
Bezzdna [24]

Answer:

b) 100 cars per day.

Explanation:

With the information above, we can conclude that each worker washes 20 cars per day, and earns a wage of $60 per day.

So the total labor costs per day is $60 wage per worker  X 4 workers = $240

The total sales revenue per day is: 80 cars washed per day X $5 per wash = $400.

So, we can see that with four workers, the firm has a good profit of = $400 - $240 = $160.

If the firm hired a fifth worker, labor costs would increase to $320 ($240 + $60), the amount of cars washed would increase to 100, and the sales revenue would increase to $500 (100 x $5).

So, profits would increase to $180 ($500 - $320) if the firm hired a fifth worker.

However, productivity should still be stable, so a worker who washed less than 20 cars per day should not be hired, this is why the A option is wrong.

8 0
3 years ago
Suppose that Italy and Switzerland both produce fish and stained glass. Italy's opportunity cost of producing a pane of stained
weqwewe [10]

Answer:

Italy has comparative advantage in production of stained glass

Sweden has comparative advantage in pounds of fish.

Italy can gain from trade if it receives more than 4 pounds of fish for stained glass.

Sweden can gain from the trade if it receives more than 1/10 stained glass for every pound of fish.

d. 6 pounds of fish per pane of stained glass.

Explanation:

Italy and Sweden both countries can produce stained glass and pounds of fish. Italy can produce 4 pounds of fish per pane of stained glass while Sweden can produce 10 pounds of fish per pane of stained glass. This means Italy has comparative advantage in production of pane of stained glass while Sweden has comparative advantage in pounds of fish.

3 0
3 years ago
Jack in the Box recently estimated that the cross price elasticity of demand for chicken sandwiches with respect to the price of
Damm [24]

Answer:

-1.8%

There would be a decrease in demand of 1.8%

Explanation:

Cross price elasticity of demand measures the responsiveness of quantity demanded of good A to changes in price of good B.

If cross price elasticity of demand is positive, it means that the goods are substitute goods.

If the cross-price elasticity is negative, it means that the goods are complementary goods

Cross price elasticity = percentage change in quantity demanded / percentage change in price

-1.8 = percentage change in quantity demanded / 1%

percentage change in quantity demanded  = -1.8%

7 0
3 years ago
Porika Company purchased a truck for $57,000. The company expected the truck to last four years or 100,000 miles, with an estima
zhannawk [14.2K]

Answer:

<u><em>Units-of-activity Depreciation : $ 13,770</em></u>

<u><em>Double Declining Method Depreciation For the Second Year= $ 9120</em></u>

Explanation:

Formula:  Units-of-activity Depreciation

Annual Depreciation= Depreciable Value×Units produced during the year/Estimated total production

<em><u>Annual Depreciation</u></em> = $ 51,000 * 27000/100,000

                                     = $ 13,770

Depreciable Value = Original cost – Scrap value

<u><em>Depreciable Value</em></u> = $57000 - $6000= $ 51000

Formula : Double Declining Method

Double Of Straight Line Method Depreciation Rate = 2 * 1/10= 2* 10%= 20%

20 % of $ 57,000 for the first year=  $ 11,400

<u><em>Depreciation </em></u>20 % of $ 45,600 for the second year= $ 9120

8 0
3 years ago
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