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jasenka [17]
3 years ago
11

On January 1, Year 1, Frost Co. entered into a 2-year lease agreement with Ananz Co. to lease a new computer. The lease term beg

ins on January 1, Year 1, and ends on December 31, Year 2. The lease agreement requires Frost to pay Ananz two annual lease payments of $8,000. The present value of the minimum lease payments is $13,000. Which of the following circumstances would require Frost to classify and account for the arrangement as a finance lease?
a. Frost does not have the option of purchasing the computers at the end of the lease term.
b. The fair value of the computers on January 1, year 1 is $14,000.
c. The economic life of the computers is three years.
d. Ownership of the computers remains with Ananz throughout the lease term and after the lease ends.
Business
1 answer:
satela [25.4K]3 years ago
5 0

Answer:

Frost (Lessee) and Ananz (Lessor)

The circumstance that would require Frost to classify and account for the arrangement as a finance lease is:

c. The economic life of the computers is three years.

Explanation:

a) Data:

Annual lease payments = $8,000

Present value of the minimum lease payments = $13,000

Fair value of the computer = $14,000

The economic life of the computers = 3 years

The lease period = 2 years

b) One of the conditions for classifying the lease arrangement as a finance lease is that the lease term of 2 years forms a significant part of the asset's useful life of 3 years.  Other conditions include:

Firstly, ownership of the asset is transferred to the lessee at the end of the lease term.  The second condition is that the lessee can purchase the asset below its fair value.

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Answer:

$160,000

Explanation:

The computation of budgeted cash payments in June is shown below:-

For computing the budgeted cash payments in June first we need to find out the may credit sales and June cash sales.

May credit Sales = May = $250,000 × 40% × 100%

= $100,000

and

June cash sales = $100,000 × 60%

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Cash collection budgeted June = May credit Sales + June cash sales

= $100,000 + $60,000

= $160,000

5 0
4 years ago
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Pepsi [2]

Answer:

Cross-functional team.

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5 0
3 years ago
Why is doing your fair share at work important on a job?
melamori03 [73]

Mainly because your giving you co-workers an opurtunity to *shine* lol.

Anyway its just respect i mean its the golden rule we all learned in kindergarten...treat ppl how u wanna be treated right? ;p

The more respect a person gives at work the more he will be repected AND a lower chance of getting fired and a higher one of getting promoted.

And check your email!!!!!!

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8 0
3 years ago
When a buyer has a right to inspect the goods, the right usually must be exercised:______.
aev [14]

When a buyer has a right to inspect the goods, the right usually must be exercised: Before accepting the goods

What are the rights of the buyers?

Rights of the Buyer:

1). Right to have delivery of goods:

2). Right to Reject:

3). Right to Cancel:

4). Right to claim damages:

5). Right to Examine:

6). Right to sue for performance:

7). Right to take insurance:

8). Right to sue for recovery of price:

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Delivery of the goods and payment of the price are concurrent conditions, meaning that unless otherwise specified, the seller must be prepared and willing to transfer ownership of the goods to the buyer in exchange for payment of the price, and the buyer must be prepared and willing to pay the price in exchange for ownership.

Learn more about sales of goods:

brainly.com/question/24561653

#SPJ4

5 0
2 years ago
Under the Real Estate Law of California, an agent is required to give a copy of the listing agreement to his principal at:______
Lynna [10]

Answer:

d. at the time of signing.

Explanation:

Under Section 10142 of real estate law agent has to submit a copy of the listing agreement to the principal.

Section 10142 of the real estate law of California is attached with this is attached please find it.

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