1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
What political reasons Government intervention in markets​
Varvara68 [4.7K]

Answer:

The main reasons for policy intervention by the government are:

To correct for market failures.

To achieve a more equitable distribution of income and wealth.

To improve the performance of the economy.

Explanation:

To correct for market failures: This is achieve by creating regulation institutions for the most important sectors in any given economy e.g. Federal Reserve, Treasury Department

To achieve a more equitable distribution of income and wealth: This is the aim of a develop economy to allocate the resources where needed and for that some countries rely in the government capability to prevent Monopoly creation or to protect its Internal Labor market.

To improve the performance of the economy.: In order to meet the economical agenda of any given government the institutions use variation on the interest rate, the government expenditure or the tax policies.

6 0
3 years ago
You recently purchased a stock that is expected to earn 20 percent in a booming economy, 15 percent in a normal economy, and los
ICE Princess25 [194]

Answer:

Expected rate of return on stock is 14.86%

Explanation:

The expected rate of return of a stock is the mean return that is expected to be earned by the stock considering the different scenarios that can occur, the return in these scenarios and the probability of the occurrence of these scenarios. The formula for expected rate of return of stock is,

rE = pA * rA  +  pB * rB  +  ...  + pN * rN

Where,

  • pA, pB, ... represents the probability that scenario A, B and so on will occur or the probability of each scenario
  • rA, rB, ... represents the return in scenario A, B and so on

rE = 0.21 * 0.2  +  0.72 * 0.15  +  0.07 * -0.02

rE = 0.1486 or 14.86%

8 0
2 years ago
Many companies are capitalizing on people being at the airports longer and not being able to carry many personal health and beau
andreev551 [17]

Answer:

A) kiosk

Explanation:

Based on the information provided within the question it can be said that in this scenario the vending machines in the airport is a kiosk. This term refers to  physical structure which is used either to display information to passing strangers or to provide the individuals passing by with a product or service. Which in this case the structure/vending machine is providing beauty products.

8 0
3 years ago
Employees earn vacation pay at the rate of one day per month. During the month of July, 28 employees qualify for one vacation da
Stells [14]

Answer:

$2884

Explanation:

Given that:

  • 28 employees qualify for one vacation day each
  • Average daily wage is $103 per day

So he amount of vacation benefit expense to be recorded for the month of July:

= number of employees * average daily wage

= 28*$103  

= $2884

7 0
2 years ago
Read 2 more answers
Cameroon Corp. manufactures and sells electric staplers for $16.10 each. If 10,000 units were sold in December, and management f
Andrej [43]

Answer:

$165,975

Explanation:

The computation of sales budgeted is shown below:-

For computing the  Sales budgeted for February first we need to compute the January and February units.

January = 10,000 + (3% × 10,000)

= 10,000 + 300

= 10,300

February = 10,000 + (3% × 10,300)

= 10,000 + 309

= 10,309

Sales budgeted for February = For February × Each electric staplers

= 10,309 × $16.10

= $165,975

So, for computing the Sales budgeted for February we simply applied the above formula. The option is not available.

3 0
3 years ago
Other questions:
  • _______ is best described as the difference between the value a consumer attaches to a good or service and what he or she paid f
    7·1 answer
  • Tina's Track Supply's market-to-book ratio is currently 4.5 times and the PE ratio is 10.5 times. If Tina's Track Supply's commo
    12·1 answer
  • A grant seeker is considering a project that involves providing more low-calorie, fiber-rich foods to low-income families. What
    14·1 answer
  • While reviewing the books at his firm, Chad Cooper noticed discrepancies between how the firm recorded revenues last year and ho
    14·1 answer
  • High SchoolBusiness7 days ago Canada has a market economy. As such, Canada's economy (relative to centrally planned economies) t
    6·1 answer
  • In 2022, internal auditors discovered that Axel Corp., had debited an expense account for the $2,090,000 cost of a machine purch
    7·1 answer
  • How does the fed encourage banks to loan more money?
    11·1 answer
  • Which statement best explains the law of demand?
    10·2 answers
  • Write a 100-word draft of the memo, keeping in mind the formatting rules you have learned. Because this memo is short, it doesn'
    8·1 answer
  • Government involvement in a modern economy is generally defended because:.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!