Answer:
The correct answer is $900,000
Explanation:
Arena Corp. should record the asset and the lease obligation at the lower of the fair value of the asset at the inception of the lease.
In this case, The fair value is $900,000 and its precise amount to record. Keep in mind that Executory costs aren´t included in the lease obligation.
Answer:
In accounting, agency costs are the costs of hiring an agent in order for him/her to act on behalf of a principal. In finance, agency costs are much broader since they imply costs that may appear due to conflicts of interests between the agent and the principal. E.g. a manager who seeks to accomplish short term goals in order to collect a bonus but hurts the long term objectives and goals of the stockholders.
Agency costs of financial distress refers to the costs associated with conflicts of interest that may result in a company being insolvent, specially in the long run. This type of costs are not necessarily related to operating costs, instead they result from management decisions and strategies, e.g. higher cost of capital or debt, or even excessive spending.
Agency benefits of leverage result from stockholders benefiting from the agent's decision to keep equity low, and if needed, obtain financing from debt sources.
Answer: The answer is as follows:
Explanation:
M1 = Currency with public + Checkable deposits + Other deposits with RBI
M2 = M1 + Post office savings deposits
Currency held by the public and Checkable deposits are the components of M1.
Whereas savings deposits, Money market mutual funds held by individuals and Small time deposits are the components of M2.
We know that all the components of M1 are also the components M2.
∴ The items are included in the M2 money supply but not the M1 money supply are as follows:
Item 1 - Money market mutual funds held by individuals
Item 2- Savings deposits, including money market deposit accounts
Item 5 - Small time deposits
Answer: they saw through their plans
