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nordsb [41]
3 years ago
14

On January 1, 2021, Bombay Corporation signed a five-year noncancelable lease for equipment. The terms of the lease called for B

ombay to make annual payments of $180,000 at the beginning of each year for five years with title passing to Bombay at the end of this period. The equipment has an estimated useful life of 7 years and no salvage value. Bombay uses the straight-line method of depreciation for all of its fixed assets. Bombay accordingly accounts for this lease transaction as a finance lease. The lease payments were determined to have a present value of $750,578 at an effective interest rate of 10%.
Required:
In 2022, Cullumber should record interest expense of:______
Business
1 answer:
tresset_1 [31]3 years ago
4 0

Answer:

In 2022, Cullumber should record interest expense of $57,057.80.

Explanation:

The interest expense can be calculated using the following formula:

Interest expense = (Present value of lease payments - Annual payments at the beginning of each year) * Effective interest rate .................... (1)

Where:

Annual payments at the beginning of each year = $180,000

Present value of lease payments = $750,578

Effective interest rate = 10%

Substituting the values into equation (1), we have:

Interest expense = ($750,578 - $180,000) * 10% = $57,057.80

Therefore, Cullumber should record interest expense of $57,057.80 in 2022.

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When you buy in bulk, the price per individual item .
iogann1982 [59]

Answer:

Decreases

Explanation:

The seller is willing to diminsh price if he can sell more units of anygiven product.

3 0
3 years ago
The foreign exchange market is a market for converting the currency of one country into that of another country.
3241004551 [841]

Answer:

a. True

Explanation:

The foreign exchange market is a market for converting the currency of one country into that of another country.

For example, the conversion of dollars of the United States of America can be converted into naira (Nigeria) at the foreign exchange market.

Efficient market school is the market school which argues that forward exchange rates do the best possible job for forecasting future spot exchange rates, so investing in exchange rate forecasting services would be a waste of time because it is impossible to have a consistent alpha generation on a risk adjusted excess returns basis as market prices are only affected by new informations.

The efficient market school also known as the efficient market hypothesis (EMH) is a hypothesis that states that asset (share) prices reflect all information and it is very much impossible to consistently beat the market.

Also, forward exchange rates are exchange rates controlling foreign exchange transactions at a specific future date or time.

4 0
2 years ago
Pogisa is a director at trendz corp. after studying and consulting with experts, pogisa votes to have trendz sell a tract of lan
Alenkasestr [34]

She may be entitled to protection under the <u>Business Judgement Rule</u>, which is a doctrine that courts generally defer to the business decisions of company executives when the decisions were in good faith.  

4 0
3 years ago
"Melinda!" bellowed Torn to the company’s HR specialist, "I’ve got a problem, and you’ve got to solve it. I can’t get people in
Morgarella [4.7K]

Answer: Yes training is the solution, training is the effort made by the organization in order to provide their workers with the basic skills needed to ensure the efficiency of the work done in the organization. b.To improve productivity, to solve operational problems, to reduce wastage of materials, to boost employees morale. C. Identify training need, define programme objective, design training programme, implement training programme, monitor feedback during couse

Explanation:

a.

Training can be defined as the effort made by the organization in order to provide their workers with the basic skills needed to ensure the efficiency of the work done in the organization. The main objective of training is to achieve a change in behaviour of those workers trained. Training help the workers to acquire technical knowledge and the problems solving skills in which they can utilized on the job in order to achieve the organizational goals and objectives.

b. The need for training includes the following

1. To improve productivity on the part of both the employees and the organization

2.Training helps in solving operational problems such as reduction in the accident in the workplace, Labour turnover, absenteeism, and grievances rate in the workplace.

3. Training help the organization in reducing the wastage of materials used in the production of goods as well as to ensure better utilization of machines used in production of goods.

4. Training helps in boosting the morale of the workers in the organization, in the sense that as the workers acquired new skills it will make them a better workers which increase their market value and enhanced their earnings power which in the long run lead to job security and self actualization for the workers.

5. Training helps in filling the vacancy for specific manpower need which is crucial to the organization survival but which is very difficult to fill through the external recruitment process

6.Training helps in formation of new altitudes for the workers which will help the workers to contribute their quota towards the achievements of the organizational goals and objectives.

c. The summary of the need assessment include the following

1 . Identify the training needs

2. Define the programme objective

3. Design training programme

4.implement training programme

5. Monitor feedback during the course of training

6. Place training participants back on their jobs

7. Conduct post course evaluation to determined the benefits of the training programme.

7 0
3 years ago
Bretthauer Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of July. Prio
skad [1K]

Answer:

a) Manufacturing overhead applied to Work in Process for the month was $70,000

Explanation:

Data provided in the question

The total of the Manufacturing Overhead account = $58,000 i.e incurred

And, the total of credit to the account = $70,000 i.e applied amount

So according to the given data, the manufacturing overhead should be applied to the work in process with the total credit amount i.e $70,000

Hence, the first option is correct

4 0
3 years ago
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