Answer:
Does the agreement specify that ownership of the asset transfers to the lessee? NO
Does the agreement contain a bargain purchase option? NO
Is the lease termequal to75% or more of the expected NOeconomic life of the asset? NO (4 < (.75 X 6))
Is the present value of the minimum lease payments equalto or greater than 90% of the fair value of the asset? NO
10,000 X 3.72325
= (37233 < (.9 X 44,000))
Annuity due : n=4, i=5%.
Does the agreement specify that ownership of the asset transfers to the lessee? NO
Does the agreement contain a bargain purchase option? YES
Is the lease termequal to75% or more of the expected NOeconomic life of the asset? Yes (4 > .75X5)
Is the present value of the minimum lease payments equalto or greater than 90% of the fair value of the asset? NO
35,456 < (.9 X 43,000)
10,000 X 3.54595
Ordinary annuity
n=4, i = 5%.
Answer:
b. 40%
Explanation:
Contribution margin ratio = Contribution / Sales x 100
where,
Contribution = Sales - Variable Costs
= $180,000 - 108,000
= $72,000
therefore,
Contribution margin ratio = $72,000/ $180,000 x 100
= 40 %
thus,
The contribution margin ratio is closest to 40 %.
Answer:
focus on full disclosure of data and show that, while sales remain strong, the company must address its customer service situation
Explanation:
Sales data suggests that demand for Turnkey Software's products remains strong. However, a recent customer satisfaction survey indicates that many customers have grown dissatisfied with Turnkey's technical support and are actively looking for alternative products. When organizing the data at Turnkey's quarterly meeting, the analyst should focus on full disclosure of data and show that, while sales remain strong, the company must address its customer service situation
Answer:<u><em> Cost of goods sold</em></u> would be a debit entry to eliminate the intra-entity transfer of inventory.
Cost of goods sold is known as the direct costs ascribable to the production of the commodity sold in a organization. This considers the cost of the materials that has been substantially used in making the commodity including the labor costs.
<u><em>Therefore, the correct option is (b)</em></u>
Answer:
Reported as an adjustment to income tax expense in the period of change
Explanation:
The deferred tax expense is generally defined as an increase in balance of deferred tax liability minus the increase in balance of deferred tax asset. It is an increase in the deferred tax liability balance usually from the beginning to the end of the accounting period.
The taxable income of a corporation is simply different from accounting income due to the fact that companies use the full accrual method for financial reporting but use the modified cash basis for tax reporting.
Tax is commonly defined as an involuntary charge imposed by the government to provide revenue for government which are use for development of public institution,roads and others. Tax laws are enacted to regulate, monitor payment of tax.