Answer:
B. The lessor does not have the right to stop delivery in transit due to the lessee's breach of the lease agreement; instead, the lessor must deliver the goods to the lessee in spite of the breach, and then sue the lessee for damages.
Explanation:
During the transit of goods, if the lessor learns of a breach of the lease agreement, he has every right to stop the delivery of the goods in transit by notifying the goods carrier or bailee. Since the carrier of the goods reports directly to the lessor, once he receives instructions from the lessor to stop delivery of goods, and he still has sufficient time, the delivery should be stopped.
Once the goods are reclaimed, the lessor can then decide to sue to recover damages. He can also, decide to cancel the contract at that point
Answer:
$35,000
Explanation:
Since this is an operating lease (short lease term, no transfer of ownership, and low present value of lease payments), the lessor has to record a depreciation expense, but the lessee only considers lease payments as operating costs (no depreciation expense or lease liability should be recognized).
Depreciation expense per year under the straight line method = asset cost / useful life = $280,000 / 8 years = $35,000
Answer:
1.Taxable bonds
2Taxable bonds
3.They have the same after-tax yield
4.
municipal bond
Explanation:
The missing tax brackets are zero,10%,20% and 30%
Zero % tax rate:
municipal bond pays 4%
taxable bonds after tax yield=5%*(1-0)=5%
10% tax rate
municipal bond pays 4%
taxable bond after tax yield=5%*(1-10%)=4.5%
20% tax rate
municipal bond pays 4.0%
taxable bond after tax yield=5%*(1-20%)=4.0%
30% tax rate
municipal bond pays 4.0%
taxable bond after tax yield=5%*(1-30%)=3.50%
Answer:
Explanation:
Under GAAP, every cost incurred should be classified into either period cost or product cost, where:
Product Cost:
The cost business has incurred right now, but will benefit from it in future for e.g. raw materials used to manufacture something which will be sold in next period (by the way period means the time span for which business is reporting its performance like year or quarter). these generally include direct labor, materials and manufacturing over heads
these costs should be capitalized and expensed out in future as the inventory is used.
Period Cost:
all other costs from which business has benefited completely in current period, including admin sales and distribution related costs
these should be expensed out in current period.
for warehousing costs, if they pertain to raw materials and semi finished goods they will be capitalized but if they pertains to finished goods they will be expensed out (as there is no benefit expected from them in future now)
for research and development, every research cost should be expensed out for e.g. feasibility studies under GAAP, but if product found to be commercially viable then the development costs can be capitalized as intangible asset(with the same logic as these will be exactly like manufacturing costs for tangible products).
Answer:
d. Maybe greater or less than potential GDP
Explanation:
Real GDP stands for real gross domestic product. It is defined as the measurement of the inflation-adjusted which reflects the quantity of all the goods and the services that is produced in a yean by an economy.
A potential GDP is defined as the level of the output that an economy that can produce at the constant inflation rate.
In a given year the real GDP can be greater than the potential GDP or the can be less than the potential GDP of an economy.
Hence the correct option is (d).