Answer:
The journal entry to record the lease would be:
Debit Credit
Asset $3,000,000
Lease Payable $3,000,000
Debit Credit
Lease Payable $195,774
Cash $195,774
Explanation:
To prepare the journal entry to record the lease we would have to calculate the present value of lease payments as follows:
present value of lease payments=$195,774*15.32380=$3,000.000
Therefore, the journal entry to record the lease would be:
Debit Credit
Asset $3,000,000
Lease Payable $3,000,000
Debit Credit
Lease Payable $195,774
Cash $195,774
Answer:
The transaction allows a seller to take pride in its product
Explanation:
Have a good one!
Answer:
$929 approx
Explanation:
<u>Assumption</u>: <u>Since face value of the bond is not provided, it has been assumed to be $1000 and solved accordingly.</u>
The present value of a bond i.e bond price is the sum total of the present value of it's future coupon payments in addition to redemption value, both discounted at yield to maturity rate. It is expressed as
where, = Present Value of the bond
C = Annual coupon payment
YTM = Yield to maturity rate
n = No of years to maturity.
Here, C = $55 (assumed par value of each bond as $1000)
YTM = 7.25% per annum
n = 5 years
Putting these values in above equation, we get,
Hence, 4.073 × 55 + 1000 × 0.7047
= $929 approx
Hence, Pierre should pay less than it's face value for such a bond.
She would want to choose elegant, high-end fixtures. Fixtures in a retail operation refer to the clothing racks, display cases, mannequins, signage, and other display equipment. Since Helen is selling high-fashion to professional women she needs to project a high-end professional image.
The three-month guideline is generally recommended for those who are in salaried positions and have more secure employment. The six-month recommendation is for those who have less stable employment or earn variable incomes.