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ValentinkaMS [17]
2 years ago
13

On January 1, Year 1, Samuel Company leases equipment from Lease Corp. The lease agreement specifies five annual payments of $50

,000, with the first payment due at lease signing (January 1, Year 1), and at each January 1 from Year 2 to Year 5. At the end of the lease term, the equipment will be returned to the lessor and is expected to have a residual value of $30,000. The estimated useful life of the equipment is six years. The interest rate in the financing arrangement is 6%. The cost to Lease Corp of manufacturing the equipment is $150,000. The journal entry for the Lessor on January 1, Year 1 will include __________-
Business
1 answer:
Marrrta [24]2 years ago
4 0

Answer:

Cash (Dr.) $50,000

Lease Receivable (Cr.) $50,000

Explanation:

Lessor is the person who leases the item to gain financial benefit from the asset user lease. Lessee is a person who uses the assets but does not owns it so he pays lease rentals. In the given scenario the lease recoding at inception in the lessor books will be cash debit and lease receivable credit.

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Stella manages the production team at Camden Inc., a manufacturer of heavy industry machinery in the United States. She needs to
GuDViN [60]

Answer:

Best answer is B) What are the costs of transporting raw materials, components, and finished products?

Explanation:

5 0
3 years ago
Truman Co. sells a large number of common household items, while Stapleton sells a small number of expensive items. The two comp
slava [35]

Answer:

Truman has a higher inventory turnover ratio and Stapleton has a higher gross profit ratio ( D )

Explanation:

Truman sell a large number of common household items ( assuming 100 unit )

while Stapleton sells a small number of expensive items ( assuming 20 units )

lets assume : Truman sells at $5 per unit and Stapleton sells at $50 per unit

with the above assumptions

Truman gross profit ratio = $5 * 100 units = $500

Stapleton gross profit ratio = $50 * 20 units = $1000

from the above assumptions you can deduce that the gross profit made by Stapleton is higher although he sells a smaller amount of goods while Truman has a higher Turnover because of its higher number of sold units

4 0
3 years ago
Monica has strong interpersonal skills. At international business forums, she can work out solutions between people without gett
n200080 [17]

Answer:

C. negotiation

Explanation:

-Computer skills are abilities that allow you to use computers and software in the right way.

-Analytical skills are abilities to evaluate information to solve problems.

-Negotiation skills are abilities that allow parties to reach an agreement.

-Business ethics skills are abilities to make good business decisions according to people's values.

According to this, the skill that Monica has is negotiation.

5 0
2 years ago
See Hint Haiti is a very poor country. Singapore is much smaller geographically and has far fewer people, but it is roughly 70 t
Alecsey [184]

Answer:

Option A

Explanation:

Health standards in developed countries are much better than that of developing and underdeveloped nations. This is due to the advancement made in health infrastructure and medical technology. Also, people in developed nations are much educated to give priority to their health as compared to people living in developing or underdeveloped countries.

Hence, option A is correct

4 0
2 years ago
An investor must choose between two bonds:
Furkat [3]

Answer:

a. Compute the current yield on both bonds.

Current yield = Annual coupon payment / current market price of bond

Bond A current yield = $80 / $800 = 0.1

Bond B current yield = $85 / $900 = 0.09

b. Which bond should he select based on your answer to part a?

Bond A, because it has a higher current yield.

What is the approximate yield to maturity on Bond B?

Approximate Yield to Maturity (YTM) = [C+ (F-P) / n] / [(F+P) / 2]

Where:

C = Coupon payment

F = Face value

P = Price

n = years to maturity

Because the face value is not specified in the question, we will assume is the same as the price.

Bond B YTM = [85 + (900-900) / 2] / [(900+900) / 2]

                     = 0.09

d. Has your answer changed between parts b and c of this question in terms of which bond to select?

Under the assumption that the price and face value of Bond b are the same, we can see that the YTM and the current yield are the same, so the choice of the bond (bond A) has not changed.

However, if the face value was higher or lower than the price, the YTM would be different to the current yield, for that reason, it is always best to check Yield to Maturity instead of current yield when choosing which bond to invest in.

7 0
3 years ago
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