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Dmitrij [34]
3 years ago
7

On December 31, 20X5, Day Co. leased a new machine from Parr with the following pertinent information: Lease term 6 years Annual

rental payable at beginning of each year $50,000 Useful life of machine 8 years Day's incremental borrowing rate 15% Implicit interest rate in lease (known by Day) 12% Present value of an annuity of one in advance for six periods at:_______.
12% 4.61
15% 4.35
The lease is not renewable, and the machine reverts to Parr at the termination of the lease. The cost of the machine on Parr's accounting records is $375,500. At the beginning of the lease term, Day should record a lease liability of:_______.
a. $230,500.
b. $375,500.
c. $0.
d. $217,500.
Business
1 answer:
ki77a [65]3 years ago
6 0

Answer: $230,500

Explanation:

Based on the information given, to solve the question, we will use the interest rate of 12%. Since the present value factors have already been given, the lease liability to be recorded will then be:

= 50,000 × PV at 12%

= 50000 × 4.61

= $230,500

Therefore, At the beginning of the lease term, Day should record a lease liability of $230,500.

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Answer:

19th century,labor organizations were not very  successful in improving the working conditions and advancing the interest of industrial workers in united states.

<u>Explanation:</u>

Workers formed union.These unions give them immense power.These unions have a leader selected from among the workers only.Leader act as a representative of whole union.These unions can bargain on behalf of all the workers for providing them better working conditions,more wages,bonus.

They used strikes to force the employers to increase wages and provide better working conditions.These unions worked hard to stop child labor,give health benefits and help those workers who  got injured .In 19th century trade unions were formed by skilled workers.

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Rex loves to work with his hands and is very good at making small figurines. Three years ago, Rex opened Bronze Age Miniatures (
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Solution:

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( 25% = Positive adjustment that is added for 4 years is 25% for an year)

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= $2100

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= $233100

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= $1229

h. As the earlier payment qualifies comes under the 12-month rule and which is payment liability thus it meets the economic performance test when it pays the insurance company in august

= $5040

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