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Rus_ich [418]
3 years ago
13

On January 1, Garcia Supply leased a truck for a four-year period, at which time possession of the truck will revert back to the

lessor. Annual lease payments are $11,000 due on December 31 of each year, calculated by the lessor using a 5% discount rate. Negotiations led to Garcia guaranteeing a $39,800 residual value at the end of the lease term. Garcia estimates that the residual value after four years will be $38,600. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What is the amount to be added to the right-of-use asset and lease liability under the residual value guarantee
Business
1 answer:
Andru [333]3 years ago
4 0

Answer:

$987

Explanation:

Calculation to determine the amount to be added to the right-of-use asset and lease liability under the residual value guarantee

First step is to determine the Present value of $1: n= 4, i = 5%

Present value of $1: n= 4, i = 5%

Present value of $1=.8227

Now let calculate the amount to be added to the right-of-use asset and lease liability under the residual value guarantee

Using this formula

Amount added to right-of-use asset and lease liability=(Guaranteed -Actual)*Present value

Let plug in the formula

Amount added to right-of-use asset and lease liability=($39,800-$38,600)*.8227

Amount added to right-of-use asset and lease liability= $1,200*.8227

Amount added to right-of-use asset and lease liability=$987

Therefore the amount to be added to the right-of-use asset and lease liability under the residual value guarantee is $987

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Bill is a yacht broker in the southeastern United States. For years he has had difficulty selling large yachts locally because t
Artyom0805 [142]

Answer:

.D.complementary products

Explanation:

A complementary good is a product whose usage is dependent on the availability of another. Complementary goods are, therefore, goods that are used together.  For example, A and B will be complimentary goods if the use of A will require the use of B.

Yachts and docks are complementary products because a yacht will require a dock as the base of its operation.  Without a dock, yacht operations will be almost impossible. Bill is not making good sales on big yachts because potential customers cannot find sufficient docking space. Other examples of complementary goods are car and petrol,  printers and ink cartridges, guns and bullets, and DVD players and DVD disks.

5 0
3 years ago
The city of New Orleans has 200 advertising companies, 199 of which employ designers of normal ability at a salary of $80,000 a
mezya [45]

Answer:

Jacobs will earn $1,080,000

Explanation:

The earnings of the work factor are made up of two factors: Transfer Earnings + Economic Rents.

Transfer earnings are defined as the minimum required amount that a company must pay its workers to keep them in the workplace. Below this amount, the worker will leave his job. In this case, the Transfer Earnings are $ 80,000, which is the base salary of every designer.

On the other hand, the Economic Rents are the additional income that the worker receives and that is above the minimum level they need to supply his work (In this case, the additional income is given by Jacobs' special ability). In numerical terms, the Economics Rents amount is equivalent to the difference between the earnings obtained by the Jacobs company and the earnings obtained by the other companies.

That is: 1,500,000 - 500,000 = 1,000,000.

Therefore Jacobs salary is equivalent to 80,000 + 1,000,000 = 1,080,000.

From this, it can be deduced that approximately 92% of Jacobs' salary is equivalent to Economic Rents. From the theoretical point of view, this makes sense, because the demand for designers (which is a highly qualified profession) is very inelastic, and the more inelastic the greater the proportion of Economic Rents as part of the salary. In the annexes, I show it graphically.

8 0
3 years ago
Which of the following serves as the justification for the periodic recording of depreciation expense? a. Association of efforts
SIZIF [17.4K]

Answer:

"B"

Explanation:

Depreciation is a practice of systematic allocation of the cost of an asset to the income generated over its useful life time , either on a straight line method or reducing balance.

As demanded by the matching concept of accounting , revenue are expected to be linked to associated expenses otherwise profit will end up being overstated and and management misinformed and wrong decisions likely to be taken

7 0
3 years ago
Qualification certification and credentialing personnel are part of which nims management.
gladu [14]

The qualification certification and credentialing personnel are all part of the comprehensive resource management of NIMS

<h3>What is the meaning of nims management?</h3>

NIMS means the National Incident Management System.

The management system ensures that the government, nongovernmental organizations and private sector  work together to prevent, protect and respond to incidents.

However, the qualification certification and credentialing personnel are all part of the comprehensive resource management of NIMS.

Read more about NIMS

<em>brainly.com/question/14420110</em>

3 0
2 years ago
lpha Moose Transporters has a current stock price of $33.35 per share, and is expected to pay a per-share dividend of $1.36 at t
kirza4 [7]

Answer:

13.86%

Explanation:

Calculation to determine the flotation-adjusted (net) cost of its new common stock

Using this formula

Cost of new common stock(re) = [d1 / stock price (1-flotation cost)] +g

Let plug in the formula

Cost of new common stock(re)= [$1.36 / 33.35 (1 – 0.065)]+0.094

Cost of new common stock(re)= [$1.36 / 33.35 (0.935)]+0.094

Cost of new common stock(re)= [$1.36/31.182)+0.094

Cost of new common stock(re)=0.04361+0.094

Cost of new common stock(re)=0.1376*100

Cost of new common stock(re)=13.76%

Therefore the flotation-adjusted (net) cost of its new common stock will be 13.76%

5 0
2 years ago
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