1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Over the past year, the current assets account on the common-size balance sheet of a firm has decreased, while the current liabi
Free_Kalibri [48]

Answer:

Decreased

Explanation:

Liquidity or current ratio =  Current Assets / Current liabilities

If the current asset has been decreased and the current liabilities has been increased then the answer would be higher than before.

The current ratio tells the same and the only difference written above and in current ratio is that the above mentioned Answer is conceptual based whereas current ratio uses numerical values of current assets and current liabilities written in the balance sheet.

Current ratio tells us that whether or not the company is able to meet its short term liabilities (Current Liabilities) using its short term asset (Current Assets).

Remember that the current assets are the assets that are convertible to cash within next 12 months. Whereas current liabilities are the liabilities which we have to pay in cash within the next 12 months.

3 0
3 years ago
The objectives of internal control are to a.prevent fraud and promote the social interest of the company b.provide control over
Marina86 [1]

Answer:

d.provide reasonable assurance that assets are safeguarded and used for business purposes, financial reports are accurate, and laws and regulations are complied with.

Explanation:

The purpose of internal controls is to provide reasonable assurance that assets are safeguarded and used for business purposes, financial reports are accurate, and laws and regulations are complied with.

By definition: An internal control is a procedure or policy put in place by management <u>to safeguard assets, promote accountability, increase efficiency, and stop fraudulent behavior.</u>

Summarily, internal controls are put in place as a process to prevent employees from stealing assets or committing fraud.

4 0
3 years ago
What is the effect on the labor market of counting marginally attached workers as​ unemployed? If we count marginally attached w
Setler79 [48]

Answer:

C. the labor force participation rate falls

Explanation:

Marginally attached workers are not part of labor force, but if they are included and are unemployed then the labor which is actually participating will fall.

As in the labor participation rate = Working labor or simply employed labor divided by total labor force.

Thus, in this case with marginally attached labor, only denominator will increase in the equation.

Therefore, this will state that the labor force participation will fall as marginally attached is considered as unemployed.

8 0
3 years ago
​Traditionally, Fed policymakers have been​ ________ to use higher interest rates to head off potential asset bubbles​ ________.
r-ruslan [8.4K]

Answer:

D) ​hesitant; because it may cause a slowdown in the economy

Explanation:

The FED usually increases interest rates to halt rapidly increasing inflation, and it could be useful to calm down potential asset bubbles. The problem with raising interest rates is that it immediately cools down the economy and slow down economic growth. It might even stop economic growth and cause a recession.

Since higher interest rates increase the cost of borrowing for everyone in the economy (individuals, businesses), consumption decreases and investment increases. The problem with this is that private consumption represents nearly 70% of the GDP and the money multiplier is responsible for a lot of this.

5 0
4 years ago
An organization characterized by direct two-way lines of responsibility and communication running from the top of the organizati
Anarel [89]

Answer:

Line

Explanation:

The line organization is the organization structure in which the authority and responsibility are communicated from the top to bottom level of management so that the proper coordination could be done at each level of management i.e top, middle and lower.

Moreover, it is a two ways lines of responsibility i.e to be communicated from high to low level of management. Plus it would be reported to one supervisor only

6 0
4 years ago
Other questions:
  • After two of Mary's colleagues were laid off from their jobs for no specific reason, Mary started looking for a better job. In t
    10·1 answer
  • Beatty, Inc. acquires 100% of the voting stock of Gataux Company on January 1, 2012 for $500,000 cash. A contingent payment of $
    11·2 answers
  • Pavelko Corporation has provided the following data for its two most recent years of operation: Manufacturing costs: Variable ma
    6·1 answer
  • Harrison Ford Company has been approached by a new customer with an offer to purchase 10,000 units of its model IJ4 at a price o
    6·1 answer
  • An industry consists of three firms with sales of $310,000, $725,000, and $405,000.
    5·1 answer
  • At what value should the land be recorded in clementine repair service records?
    7·1 answer
  • Prepare a marketing plan to market yourself. Visit a career website and locate three careers listed on the website and determine
    7·1 answer
  • The graph shows the price of a good compared to the quantity demanded and the quantity supplied. A graph titled Price Controls G
    7·1 answer
  • Which economic goal is encroached upon when the government taxes your wages in order to provide unemployment
    15·1 answer
  • Jack works for Red, Blue and Green CPAs. Each year Red, Blue and Green asks Jack to fill out a form indicating all of his financ
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!