Key person insurance is business continuation plan does this company have.
<h3><u>Explanation:</u></h3>
The insurance policy of life that company purchases on key executive's life. The company pays the insurance policy through which it also plays the beneficiary of the plan. This insurance is known as "key man insurance" or "key woman insurance" or "business life insurance".
These pay after the death of key employee are used for expenses for replacement person and the business would be closed with proper steps. In this situation, the insurance of key person insurance gives the company some options other than immediate bankruptcy.
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Answer:
Dr Lease receivable $76,441
Dr Cost of goods sold $42,178
Cr Sales revenue $73,619
Cr Equipment $45,000
Explanation:
Preparation of Journal entry
Based on the information given we were told that leased equipment cost the amount of $45,000 in which the lease agreement as well has a 6 annual payments of the amount of $15,000 while the present value of the lease agreement is the amount of $73,619 and the present value of the residual value is the amount of $2,822 which means that the Journal entry at beginning of the lease will be recorded as:
Dr Lease receivable $76,441
($73,619+$2,822)
Dr Cost of goods sold $42,178
($45,000-$2,822)
Cr Sales revenue $73,619
Cr Equipment $45,000
Answer:
correct option is B. $8,000
Explanation:
given data
equipment = $18,000
book value = $82,000
fair value = $90,000
to find out
Alamos would record a gain/(loss)
solution
we know that When exchange have commercial substance we need to record the gain arising from transfer of old assets
so here Gain on transfer of old assets is
Gain on transfer of old assets = fair value of the old equipment - book value of the old equipment ................1
Gain on transfer of old assets = $90,000 - $82,000
Gain on transfer of old assets = $8,000
so here correct option is B. $8,000
I have no Idea! Good luck!
<span>What an insured person gives up when he or she purchases life insurance instead of using the premium dollars for other purposes is called the opportunity cost of buying life insurance. Opportunity cost is defined as the cost incurred by choosing one option over an alternative one that may be equally desired.</span>
