Answer and Explanation:
The financial statement effects template to reflect the following events is shown below:-
Balance Sheet
Transaction Cash assets + Non Cash = Liabilities+Contributed assets capital Earned Capital
a. $400,000 $400,000
b. -$18,000
-$18,000
c. -$202,000 -$202,000
Income statement
Transaction Revenue - Expense = Net income
b. $18,000 -$18,000
c. $2,000 -$2,000
Answer:
Lease Equipment $150,000
BUY EQUIPMENT$134,700
Differential Effects-$15,300
The company should choose BUY EQUIPMENT which is Alternative 2
Explanation:
Preparation of the differential analysis dated March 15 to determine whether Laredo Corporation should lease (Alternative 1) or purchase (Alternative 2) the equipment
Differential Analysis
Lease (Alt. 1) or Buy (Alt. 2) Equipment
March 15
Lease Equipment (Alternative 1); Buy Equipment
(Alternative 2); Differential Effects (Alternative 2)
Costs:
Purchase price $0 $120,000 $120,000
Freight and installation $0 $1,500 $1,500
Repair and maintenance (6 years) $0 $13,200.$13,200
($2,200*6=$13,200)
Lease (6 years) $150,000 $0 -$150,000
($25,000*6)
Total costs $150,000 $134,700 -$15,300
Based on the above calculation the company should choose BUY EQUIPMENT which is Alternative 2
Answer$13m
Explanation:
It's the declared dividend on the date declared, that is obligatory for payment by a company. What happens there after are normal trading activities.