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Montano1993 [528]
3 years ago
8

Keating Co. is considering disposing of equipment with a cost of $63,000 and accumulated depreciation of $44,100. Keating Co. ca

n sell the equipment through a broker for $26,000 less 8% commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $47,000. Keating will incur repair, insurance, and property tax expenses estimated at $10,000 over the five-year period. At lease-end, the equipment is expected to have no residual value. The net differential income from the lease alternative is
Business
1 answer:
yulyashka [42]3 years ago
5 0

Answer:

$11,080

Explanation:

Calculation to determine what The net differential income from the lease alternative is

Using this formula

Equipment leased net differential income = Lease amount - Estimated expenses - Net sale of equipment

Let plug in the formula

Equipment leased net differential income= $47,000-$10,000-[$26,000-($26,000*8%)]

Equipment leased net differential income=$47,000-$10,000-($26,000-$2,080)

Equipment leased net differential income=$47,000-$12,000-$23,920

Equipment leased net differential income=$47,000-$35,920

Equipment leased net differential income=$11,080

Therefore The net differential income from the lease alternative is $11,080

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True According to the quantity theory of money, if the amount of money in an economy doubles, all else equal, price levels will also double.

Definition: The quantity theory of money states that the money supply and price level in an economy are directly related to each other. When the money supply changes, the price level changes proportionally, and vice versa.

The quantity theory of money states that the price level multiplied by real output is equal to the money supply multiplied by the speed or rotation of the money supply. Speed ​​is generally stable.

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1 year ago
Agent Sam told a buyer that the fence line also marked the property line. Agent Sam knew that the property line did not extend t
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Answer:

I dont know dude

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2 years ago
Barkatorium Pet Supplies established a line of credit with its local bank and used (borrowed) $95,000 against it to purchase its
malfutka [58]

Answer:

True

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2 years ago
 Because of its importance in summarizing your strategy, the Introduction and Overview of your business plan should be 
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3 0
3 years ago
In 2013, Natural Selection, a nationwide computer dating service, had $500 million of assets and $200 million of liabilities. Ea
Allisa [31]

Answer and Explanation:

The computation is shown below:

a)  Liabilities to equity ratio is

= $200 ÷ ($500 - $200)

= 0.667

Times interest earned ratio is

= EBIT ÷ Interest expense

= $120 ÷ $28

= 4.285

Times burden covered is

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= 120 ÷ (28+24 ÷ (1-0.4))

= 1.764

b)

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Principal and interest requirements  

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= 0.433 or 43.3%

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3 0
3 years ago
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