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8090 [49]
3 years ago
15

a. The amount of each lease payment will be increased by the option price. b. The lessee must decrease the present value of the

lease payments by the present value of the option price. c. There is no impact as the option does not enter into the transaction until the end of the lease term. d. The lessee must increase the present value of the lease payments by the present value of the option price.
Business
1 answer:
Natalija [7]3 years ago
3 0

Answer:

d). The lessee must increase the present value of the minimum lease payments by the present value of the option price.

Explanation:

The bargain purchase option refers to the clause mention in a lease contract or agreement which provides the lessee \text{to purchase} or buy a leased asset from a person at the end of the \text{lease period} at a price which is substantially below its \text{fair market value}.

In bargain purchase option, the present value of a \text{minimum lease payments} can be increased by bargain purchase option. So the lessee must \text{increase} the present value of \text{minimum lease payments} by the present value of the \text{option price.} This is the impact of the bargain purchase option on the present value of \text{minimum lease payments}.

Thus, the correct option is (d).

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Bramble Corp. incurs the following costs to produce 9900 units of a subcomponent: Direct materials$8316 Direct labor11187 Variab
matrenka [14]

Answer:

$3,762

Explanation:

The computation is as seen below

Total cost when the production is 9,900 units

Direct materials $8,316

Direct labor $11,187

Variable overhead $12,474

Total $31,977

But,

Their new cost on supplier offer is

= $2.85 × 9,900 units

= $28,215

In the case when the order is accepted, the net income would increase by

= $31,977 - $28,215

= $3,762

5 0
3 years ago
Everly Company has determined a standard variable overhead rate of $2.75 per direct labor hour and expects to incur 1.0 labor ho
ANTONII [103]

Answer:

Variable Overhead Rate Variance  - $55 favorable

Variable Overhead Efficiency Variance  -  $275 favorable

Over applied efficiency variance - $330 favorable

Explanation:

The computations are shown below:

Variable Overhead Rate Variance = Actual Hours × (Actual Rate - Standard variable overhead Rate)

= 1,100 hours × ($2.70 - 2.75)

= $55 favorable

Variable Overhead Efficiency Variance = Standard variable overhead Rate × (Actual Hours - Standard Hours)

= $2.75 × (1,100 hours  - 1 × 1,200)

= $275 favorable

So, the over-applied variable overhead would be

= $55 favorable + $275 favorable

= $330 favorable

7 0
3 years ago
A car travels at a speed of 30mph.How far does the car travel in 2 hours​
Oksana_A [137]
Answer: 60 miles


If it goes 30 miles per hour, then it would go 60 miles in two hours.
7 0
3 years ago
Read 2 more answers
The movies Goldfinger (James Bond Movie) and Die Hard 3 (Die Hard with a Vengeance) both involve the perpetrators doing somethin
yaroslaw [1]

Explanation:

After the failure of a drug factory in Latin America, James Bond — agent 007—goes to Miami Beach. Where he receives orders from his boss, M, by CIA agent Felix Leiter, to monitor the bullion dealer Auric Gold Finger, who is staying at the same hotel as Bond. The investigator sees Gold's finger gambling on gin rummy and saves him by manipulating his worker, Jill Master's son, and extorting Gold's finger from losing. Bondand Jill is consummating their current relationship; however, Bond is eventually deprived of Gold Finger's Korean manservant Odd's work. As Bond regains consciousness, he discovers Jill dead, coated in gold polish, dying from "epidermal suffocation."

In Paris, Bond discovers that his goal is to decide whether Gold Finger smuggles gold globally. Bond arranges to encounter Gold Finger socially and wins a high-stakes game of golf against him, with the Nazi gold bar at stake. Bond leads him to Switzerland, where Tilly, Jill Masterson's niece, attempts an futile attempt at vengeance by shooting a Gold Finger sniper gun.

Bond wanders into Gold Finger's factory and learns that he smuggles the gold by burning it down and putting it into the bodywork of his vehicle, which he brings with him every time he drives. Bond even overhears him speak about "Project Grand Slam" to a Red Chinese agent called Mr. Ling. Leaving, Bond comes across Tilly as she's attempting to destroy Gold Finger again, but she's creating an alarm in the process; odd job kills Tilly with her hat. Bond is caught and Gold finger binds Bond to the cutting table below the advanced torch, which proceeds to break a sheet of gold in two, with Bond sitting on it. Bond lies telling the Gold Finger which MI6 learns of Grand Slam, leading the Gold Finger to save Bond's life and trick MI6 into thinking that Bond has matters in order.

8 0
3 years ago
As the number of sellers in an oligopoly becomes very large, a. the price effect is magnified. b. the quantity of output approac
Charra [1.4K]

As the number of sellers in an oligopoly becomes very large, the quantity of output approaches the socially efficient quantity.

An Oligopoly is when there are few large firms operating in an industry.  

Characteristics of an oligopoly:

  1. Firms set the price for their product
  2. Products are differentiated
  3. The demand curve is downward sloping
  4. There is a high barrier to entry and exit of firms into the industry.

As the number of firms increase in an oligopoly, the quantity and price approaches what would exist in a perfect competition. As the number of firms in an oligopoly decreases, the price and quantity produces approaches that would be exist in a monopoly.

To learn more about oligopolies, please check: brainly.com/question/14136347

7 0
2 years ago
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