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pentagon [3]
2 years ago
12

Bryant leased equipment that had a retail cash selling price of $650,000 and a useful life of five years with no residual value.

The lessor spent $555,000 to manufacture the equipment and used an implicit rate of 8% when calculating annual lease payments of $150,738 beginning January 1, the beginning of the lease. Lease payments will be made January 1 each year of the lease. Incremental costs of consummating the lease transaction incurred by the lessor were $17,500. What is the effect of the lease on the lessor's earnings during the first year (ignore taxes)?
Impact on lessor's pretax earnings
Cost of goods sold
Interest revenue
Sales revenue
Selling expense 738,317
Income effect $738,317
Business
1 answer:
Anna [14]2 years ago
6 0

Answer:

$117,441

Explanation:

Impact on lessor's Pretax Earning for First Year

Sales Revenue                 $650,000

Cost of Goods Sold        -$555,000

Selling expense              -$17,500

Interest Revenue              <u>$39,941   </u> ($650,000 - $150,738)*8%

Income Effect                   <u>$117,441</u>

So, the effect of the lease on the lessor's earnings during the first year is $117,441

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Pratte Boat Wash's cost formula for its cleaning equipment and supplies is $2,600 per month plus $51 per boat. For the month of
Lyrx [107]

Answer:

The Correct answer is $85 U.

Explanation:

Spending change is the contrast among the real and expected (planned) measure of a cost  

Genuine Spending on cleaning equipment and supplies in April = $3,450  

Planned Spending in cleaning equipment and supplies in April = $2600 + $51 × 15 boat = $ 3365  

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7 0
3 years ago
If the economy booms, RTF, Inc., stock is expected to return 13 percent. If the economy goes into a recessionary period, then RT
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Answer: 0.000903

Explanation:

Expected return is the sum of the probability that the other returns will happen.

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= 10.79 % + 0.85%

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Variance = ((13% -11.64%)² * 83%) + (5% - 11.64%)² * 17%)

= 0.0001535168 + 0.0007495232

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6 0
3 years ago
Which of the following is an advantage of gathering data with surveys?
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3 years ago
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You take a sample of rents of 182 apartments in San Francisco and find that the mean rent is $4000 per month and the standard de
dedylja [7]

Answer:

89%

Explanation:

according to Chebyshev's theorem, for any k > 1, at least [1 - (1/k^2)] of the data will lie within k standard deviations of the mean.Therefore, Chebyshev's theorem formula can be given as follows:

Chebyshev's theorem formula =  1 - (1/k^2) ...................... (1)

In order to fing k, we proceed as follows:

1. Subtract the mean of rents from the larger rent value,

That is, $7,000 - $4,000 = $3,000

2. Divide the difference of $3,000 above by the standard deviation to obtain k as follows:

k = $3,000 ÷ $1000 = 3

3. Substitute 3 for k in equation (1) as follows:

Chebyshev's theorem formula =  1 - (1/3^2)

                                                   = 1 - (1/9)

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If we multiply 0.89 by 100, we have 89%.

Therefore, 89% of the rents in the sample will fall between $1000 and $7000 per month.

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3 years ago
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ValentinkaMS [17]
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