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2 years ago

AA Corp can lease a truck for four years at a cost of $25,000

Business

1 answer:

erica [24]2 years ago

3 0

______________________________

<h3>LEASING:</h3><h3>= $25,000 × 4 Years</h3><h3>= $100,000</h3><h3>= 10% × $25,000 ÷ 100 - $25,000</h3><h3>= $22,500 × 4 Years</h3><h3>= <u>$90,000</u></h3><h3 /><h3>BUYING:</h3><h3>= $60,000 + $40,000</h3><h3>= $100,000</h3><h3>= 10% × $10,000 ÷ 100 - $10,000</h3><h3>= $9,000 × 4 Years</h3><h3>= $36,000 + $60,000</h3><h3>= <u>$</u><u>9</u><u>6</u><u>,000</u></h3>

<h3>LEASING IS A BETTER OPTION</h3>

______________________________

You might be interested in

Stonewall Corporation issued $52,000 of 5%, 10-year convertible bonds. Each $1,000 bond is convertible to 10 shares of common st

zalisa [80]

Answer:

A January 1, 2020

Dr Cash $54,600

Cr Bonds payable $52,000

Cr Premium on bonds payable $2,600

B. December 21 2022

Dr Bonds payable $52,000

Dr Premium on bonds payable $1,820

Cr Common stock $26,000

Cr Paid in capital in excess of Par $27,820

Explanation:

Preparation of the entry for Stonewall Corporation

A January 1, 2020

Dr Cash $54,600

($52,000+$2,600)

Cr Bonds payable $52,000

Cr Premium on bonds payable $2,600

(5%*$52,000)

(To record issue of bonds for premium)

B. December 21 2022

Dr Bonds payable $52,000

Dr Premium on bonds payable $1,820

(100%-30%*$2,600)

Cr Common stock $26,000

(52*10*50)

Cr Paid in capital in excess of Par $27,820

($52,000+$1,820-$26,000)

(To record conversion of bonds into Common Stock)

7 0

3 years ago

Stanford Corporation has four categories of overhead. The expected overhead costs for each category for next year are as follows

aliina [53]

Answer:

Results are below.

Explanation:

<u>First, we need to calculate the predetermined overhead rate:</u>

<u></u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 2,325,000 / 20,000

Predetermined manufacturing overhead rate= $116.25 per direct labor hour

<u>Now, we can allocate overhead:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 116.25*375

Allocated MOH= $43,493.75

Total cost= 5,000 + 7,500 + 43,493.75

Total cost= $55,993.75

Selling price= 55,993.75*1.3

Selling price= $72,791.88

<u>First, we need to calculate the activities rate:</u>

<u></u>

Maintenance= 210,000 / 10,000= $21 per machine hour

Materials handling= 90,000 / 2,000= $45 per material move

Setups= 75,000 / 100= $750 per setup

Inspection= 150,000 / 4,000= $37.5 per inspection

Now, we can allocate overhead:

Maintenance= 21*150= 3,150

Materials handling= 45*4= 180

Setups= 750*2= 1,500

Inspection= 37.5*3= 112.5

Total allocated costs= $4,942.5

8 0

2 years ago

It had a brief existence of only sixteen months and was supplanted by the transcontinental telegraph. based on the context, what

laiz [17]

This "it" thing had a "brief" existence of just 16 months. The way it's referred to, it seems 16 months is not a long time for this to exist. Something much bigger, the transcontinental telegraph, came along.

So "supplant" seems to mean "to replace, supersede, or surpass".

6 0

2 years ago

Read 2 more answers

The goal of __________ is to maximize sales, gain widespread market acceptance, and capture a large market share quickly by sett

Yuri [45]

Answer:

D. Penetration pricing

Explanation:

The goal of <u>penetration pricing</u> is to maximize sales, gain widespread market acceptance, and capture a large market share quickly by setting a relatively low initial price.

Penetration pricing: It is a pricing technique of fixing the low initial price of a product to establish the product in the market due to the low price. This pricing strategy help in attracting more customer and gain a bigger market share. The price of the product is relatively low in the market compare to competitive products. This strategy could surprise competitors as they could lose profit at the lower price of the product, which can create a competitor´s advantage for the organization. This pricing technique is used in the introductory stage of the life cycle of the product.

3 0

3 years ago

Match the correct strategy to the risk..

Brilliant_brown [7]

The following would be the correct answers in order to match the correct strategy to the risk:

1 - Disability Insurance - A Disability

2. Read all contract before you sign - C Scams

3. Warranty - E Product Failure

4. Homeowner’s Insurance - B An expensive repair to the roof of your house

5. Do not give out personal information - D Identity Theft

3 0

3 years ago