Answer:
The below additional piece of information is missing from the question:
In its 2018 income statement, what amount of interest expense should Hernandez report from this lease transaction?
The interest expense for 2018 is $150,000
Explanation:
Interest expense for 2018 is the implicit interest 10% multiplied by the difference present value of $1,800,000 minus annual payment of $300,000.
In order to compute the interest expense,the annual payment must be deducted first since the annual payment was made at the start of the year,hence interest is only due on the net amount of $1,500,000($1,800,000-$300,000).
Interest expense=$1,500,000*10%=$150,000
Answer:
$1,114.86
Explanation:
$1,000 in a 3 year CD
total amount received if CD cashed on maturity = $1,000 x (1 + 4%)³ = $1,124.86
total interest = $1,124.86 - $1,000 = $124.86
penalty = interest for 3 months = 4% x 3/12 = 1% ⇒ $1,000 x 1% = $10
total money received = principal + earned interest - penalty = $1,000 + $124.86 - $10 = $1,114.86
Answer:
$400
Explanation:
Total Sales Value = No of chocolate cakes × sales price
= 100 × 25
= 2,500
Total Costs:
= materials + direct labor + variable factory overhead + special packaging
= ($12 × 100) + ($5 × 100) + ($3 × 100) + 100
= $1200 + 500 + 300 + 100
= $2,100
Profit = Sales value - Total costs
= 2,500 - $2,100
= $400
Note: Fixed costs remain fixed thus will not be affected by acceptance of offer
Variable selling costs will be ignored as they will not be incurred as per the question
Answer:
final lower-of-cost-or-market inventory value is $155
correct option is $155
Explanation:
given data
product cost = $162
replacement cost = $155
realizable value = $160
profit margin = $10
to find out
final lower-of-cost-or-market inventory value
solution
we know that according to the inventory accounting that
inventory value is the lower of cost or the market value or the replacement cost is taking as basis for the inventory fair value so
here we have given value $162 and $155 and $160
so the lower value of all these is $155
so final lower-of-cost-or-market inventory value is $155
correct option is $155
Answer:
10 days
Explanation:
The Critical Path Method is a method of managing activities in a project so as to maximize time. In the case of A, B and C activities, since they are connected with the same start-to-start and finish-to-finish, it means that the activities are linked and as such the duration of the project is 10 days since the last activity will take 10 days to finish.
The implication between SS and FF in the activities means that they start up at the same time in the CPM and while activity A ends at 5 days, C proceeds to 10 days.