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Readme [11.4K]
3 years ago
6

Effective December 15th, 2018, the operating leases will be recorded: A) as an asset and liability on the balance sheet of the l

essee with a value equal to the estimated residual value of the leased asset. B) in the footnotes rather than on the balance sheet of the lessee. C) on the balance sheet of the lessee with value equal to the present value of future lease payments. D) only on the balance sheet and income statement of the lessor. E) only on the income statement of the lessee as each lease payment is expensed.
Business
1 answer:
Shalnov [3]3 years ago
4 0

Answer: C) on the balance sheet of the lessee with value equal to the present value of future lease payments.

Explanation:

According to IFRS 16 and US GAAP ASC 842 which commenced Jan 1, 2019 and Dec 15, 2018 respectively, Lease payments are to be recognized on the balance sheet of the Lessee at the present value of the future payments on the lease.

The discount rate to be used will be implicitly stated in the lease agreement if both parties were able to determine it.

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Quick Computing currently sells 9 million computer chips each year at a price of $11 per chip. It is about to introduce a new ch
irga5000 [103]

Answer:

overall effect for the first year will be an increase of 94 millions in the cash flow.

Explanation:

The chip will provide:

27 million x $ (14 - 10) each = 104 millions of gross profit

But, decreases gross profit from older chip at rate of:

2 million x $ (11 - 6) each = 10 millions per year

The Chip will generate 104 gross profit but reduce other chip division profit by 10 million

<u>overall effect for the first year will be of 94 millions postive</u>

8 0
3 years ago
Suppose a food pantry received a donation and allowed volunteers to vote on how the funds were to be spent. Three options were p
BartSMP [9]

Answer:

improvements to the building

Explanation:

As we know that the opportunity cost is the cost that gives the benefit in the altnernative when the other thing is sacrifice. Now the

As the second best choice is that there should be an improvement in the building so here the opportunity cost related to the purchase of a vehicle is building improvement

Hence, the same is to be considered

7 0
3 years ago
Which project type creates a competitive advantage that enables the organization to earn a greater than normal return on investm
aleksandr82 [10.1K]

Answer:

a breakthrough project

Explanation:

Having competitive advantage <em>implies</em> being in a  condition or circumstance that puts an organisation in a favorable business position.

Therefore, a Breakthrough Project would create a competitive advantage that enables the organization to earn a greater than normal return on investment than its competitors, because it is like a<em> disruptive innovation.</em>

4 0
3 years ago
Isabel invested in four-stock portfolio; she invested 20 percent of her money in Stock A, 30 percent of her money in Stock B, 25
expeople1 [14]

Answer: 1.50

Explanation:

Isabel's portfolio beta is a weighted average of the individual stock betas.

= Weight of stock A * Stock A beta +  Weight of stock B * Stock B beta +  Weight of stock n * Stock n beta

= (20% * 0.4) + (30% * 1.2) + ( 25% * 2.5) + (25% * 1.75)

= 0.08 + 0.36 + 0.625 + 0.4375

= 1.5025

= 1.50

5 0
3 years ago
The ronnie co. has sales per share of 25.37. If the PS ratio is 1.47 times, what is the stock price?
ivolga24 [154]

Answer:

$37.30

Explanation:

Sales per share S = 25.37

PS ratio = 1.47 times

PS ratio = Price to sales ratio = P/S  

P/S = 1.53

Price per share = (P/S) * Sales per share

Price per share = 1.47 * 25.37

Price per share = $37.2939

Price per share = $37.30

6 0
3 years ago
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