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viktelen [127]
3 years ago
6

A lessor with a sales-type lease involving an unguaranteed residual value at the end of the lease term will report sales revenue

in the period of inception of the lease at which of the following amounts?A. the sales price less the present value of the residual valueB. the present value of the minimum lease payments plus the present value of the unguaranteed residual valueC. the minimum lease payments plus the unguaranteed residual valueD. the cost of the asset to the lessor, less the present value of any unguaranteed residual value
Business
1 answer:
LUCKY_DIMON [66]3 years ago
5 0

Answer: A. the sales price less the present value of the residual value

Explanation:

Sales revenue is calculated as the selling price less the cost of the commodity being sold. In this case the cost will be the value of the asset. The sales revenue will therefore be the selling price less the value of the asset when it is to be sold so the relevant value is the residual value.

Even though the residual value is unguaranteed, the current estimate will be treated as the value to be deducted from the selling price. The difference is what will be reported as sales revenue.

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Casey Motors recently reported net income of $148 million. The firm's tax rate was 40.0% and interest expense was $46 million. T
HACTEHA [7]

Answer:

$61,640,000

Explanation:

Earning before tax:

= Net income ÷ 60%

= $148,000,000 ÷ 60%

= $246,666,667

EBIT:

= Earning before tax + Interest expense

= $246,666,667 + $46,000,000

= $292,666,667

EVA:

= EBIT(1 - t) - (Capital employed × cost of capital)

= $292,666,667(1 - 0.4) - ($1,036,000,000 × 11%)

= $175,600,000 - 113,960,000

= $61,640,000

3 0
3 years ago
Over the last two years, an american clothing company has partnered with a manufacturer in china to make clothes at a cheaper co
Trava [24]

The mutual benefit that the American Clothing Company derives by partnering with a Chinese Manufacturer comes because <u>E. It is</u> an example of counter-trading ...

<h3>What is Counter-trading?</h3>

Counter-trading occurs when goods or services are exchanged for other goods or services rather than for hard currency.  It is a reciprocal form of international trade in which, for example, the American Clothing Company brings in its technology while the Chinese Manufacturer provides cheap labor and other resources.

<h3>Answer Options:</h3>

A. It is a strategic alliance in which two countries share the risks and rewards of starting a new enterprise together in a foreign country.

B. It is a wholly owned subsidiary in which a foreign subsidiary is totally owned and controlled by an organization.

C. It is a greenfield venture in which owning the organization has been built from scratch.

D. It is an example of a franchise in which a company allows a foreign company to pay it a fee and a share of the profit in return for using the first company’s brand name and a package of materials and services.

E. It is an example of counter-trading in which the country is bartering for goods.

Thus, the counter-trade between these companies is mutually beneficial because of <u>Option E</u>.

Learn more about counter-trading at brainly.com/question/14659049

6 0
3 years ago
Assume that the economy grows by 3 percent, total factor productivity grows by 2 percent, and the labor force grows at 2 percent
RideAnS [48]

Answer:

correct option is A. True

Explanation:

given data

economy grows = 3 percent

total factor productivity grows = 2 percent

labor force grows = 2 percent

labor contributes = 40 percent

stock of capital rise = 0.33 percent

solution

we apply here Economy growth % formula that is

Economy growth % = total factor productivity + labor contributes × labor force grows + ( 1- labor contributes ) stock of capital   .............1

put here value

3% = 2% + 40% (2%) + 60% C

3% = 2.8 + 0.6 × C

C = \frac{0.2}{0.6}  

C = 33.33 %

so given statement is true

3 0
4 years ago
n 2010, the country of Vesey exported goods worth $312 billion and services worth $198 billion. It imported goods worth $525 bil
LuckyWell [14K]

Answer:

current account balance = $271.8 billion

Explanation:

given data

exported goods worth = $312 billion

exported services worth = $198 billion

imported goods worth =  $525 billion

imported services worth = $255 billion

sent famine relief to Africa = $1.2 billion

received = $3 billion

to find out

current account balance in Vesey

solution

we know that current account balance as

current account balance = total expenses - total revenue .............1

here

total expenses are = $525  + $255 + $3 = $783 billion

and total revenue = $312 + $198 +$1.2 = $511.2 billion

so from equation 1

current account balance = $783 billion - $511.2 billion

current account balance = $271.8 billion

7 0
3 years ago
4. John Payer, owner of Payer's Garage, estimates he will need $55,000 for
densk [106]

Answer:

29365

Explanation:

Compound interest means that the interest you earn each year is added to your principal, so that the balance doesn't merely grow, it grows at an increasing rate, therefore John needs to put aside today $29.365 as a compound interest rate of 8% will yield as follows:

Year = Principal+interest=New Balance/Principal

Year 1: $29,365 + $2,396 = $31,761

Year 2: $31,761 + $2,591 = $34,352

Year 3: $34,352 + $2,803 = $37,156

Year 4: $37,156 + $3,031 = $40,188

Year 5: $40,188 + $3,279 = $43,467  

Year 6: $43,467 + $3,546 = $47,014

Year 7: $47,014 + $3,836 = $50,850

Year 8: $50,850 + $4,149 = $55,000

3 0
4 years ago
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