Complete question:
On January 1. Year 1. White Co. sold a property with a remaining useful life of 20 years to Blue Co. for $900.000. At the same time. White entered into a contract with Blue for the right to use the property (leaseback) for a period of 6 years. with annual rental payments of 580.000 that approximate the market rental payments for similar properties. On January 1. Year 1. the carrying amount of the property was 5680.000. and its fair value was 5770.000. A discount rate for the lease of 10% is used by both White and Blue. The present value factor for an ordinary annuity at 10% for 6 periods is 4.3553. The lease does not transfer the property to White at the end of the lease term and does not include a purchase option.
What amount of lease expense for the right of use of the property is recognised by White in Year 1 ?
A. $0
B. $130,000
C. $90,000
D. $220,000
Answer:
$90,000 amount of lease expense for the right of use of the property is recognised by White in Year 1
Explanation:
If the leaseback is known as an operating lease, the original transition to the buyer-lessor of the asset should be taken into account as the selling of an asset, given that all the income identification requirements have been fulfilled.
If the deal is of equal value, the lender lease is informed of the gain or loss of sale between the purchase price and the sum of the land that is held. Yet this is not a equal value trade. The property's sale price is higher than its market value. Accordingly, the income or loss on sale seems to be the difference between the equal worth and the value of the land.
Therefore, on 1 January, White records a benefit of $90,000 in revenue of $770,000 (fair value of $680,000 in carrying amounts)
Answer:
$2800
Explanation:
To find the Gain or loss on the sell of shares we jus need to deduct cost of purchasing and brokerage fee from sale proceeds
12 DECEMBER 2019
Gain/loss = Sales proceeds- Total Cost to purchase - Cost to sell
Gain/loss= ($88 x 265) - $20,305 - $215
Gain/loss= $23,320 - $20,305 - $215
Gain/loss= $2800
WORKINGS
Purchase 1 Jan 2019
265shares x $76per share = $20,140
Total cost to purchase = $20,140 + $165(brokerage fee)
Total cost to purchase = $20,305
Cost to sell = $215(brokerage fee)
The companies set their dividend payout, they generally aim for a rate that is when it is sustainable. <span>The </span>dividend payout<span> ratio is the amount of </span>dividends<span> paid to stockholders relative to the amount of total net income of a company. The amount that is not paid out in </span>dividends<span> to stockholders is held by the company for growth. The amount that is kept by the company is called retained earnings.</span>
(.) Technological
<h3>What is the technological environment?</h3>
The company's external environment that is related to technological advancements and changes includes the technological environment. Furthermore, the term "technology" is typically connected to method and apparatus. Their transformation presents the organization with both risks and opportunities.
It has an impact on a number of business factors. That might present a chance or a danger. Companies must adapt to technological variables since they are beyond their control. Companies must therefore be able to change with new technology advancements.
Early adopters of new technologies frequently increase their market share and profit margins. As a result, businesses need to monitor trends and developments. Utilizing opportunities while reducing dangers is the goal. The business can remain competitive in this way.
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Answer:
P0 = $45.299899 rounded off to $45.30
Explanation:
The dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under DDM is,
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + [(Dn * (1+g) / (r - g)) / (1+r)^n]
Where,
- D1, D2, ... , Dn is the dividend expected in Year 1,2 and so on
- g is the constant growth rate in dividends
- r is the discount rate or required rate of return
P0 = 22 / (1+0.19) + 15 / (1+0.19)^2 + 6 / (1+0.19)^3 + 3.2 / (1+0.19)^4 +
[(3.2 * (1+0.04) / (0.19 - 0.04)) / (1+0.19)^4]
P0 = $45.299899 rounded off to $45.30
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