You have data showing demand for plumbing services rising for each of the last five years. This would best be displayed on a:

Skor Co. leased equipment to Douglas Corp. on January 2, 2011 for a 7-year period expiring December 31, 2017. Equal payments und

ExtremeBDS [4]

Answer:

$2,400,000

Explanation:

Always remember that in the case of a sales type lease, the lessor at the inception of the sales type lease would recognize sale of equipment at a price of present value of the lease payments which is $2,800,000 and cost of goods sold will be recorded at cost of equipment which is $2,400,000.

Case 1: If the equipment was an inventory then the double entry would be as under:

Recording of Sales:

Dr Lease Asset $2,800,000

Cr Sale of Inventory $2,800,000

Recording of inventory out:

Dr Cost of Goods Sold $2,400,000

Cr Inventory Account $2,400,000

Case 2: If the equipment was fixed asset then the double entry would be as under:

Recording of Sales:

Dr Lease Asset $2,800,000

Cr Sale of Fixed Asset $2,800,000

Recording of equipment handing over to customer:

Dr Cost of Goods Sold $2,400,000

Cr Equipment Account $2,400,000

In both of the cases the cost of goods sold will be $2,400,000.

4 0

3 years ago

When a firm has flotation costs equal to 6.8 percent of the funding need, project analysts should:?

Akimi4 [234]

When a firm has flotation costs equal to 6.8 percent of the funding need, project analysts should increase the initial project cost by dividing that cost by (1-0.068). The flotation cost is the cost which emerge when a corporation gather its fund by issuing new securities. Underwriting fees, legal fees, registration fees are the common fees that will increase corporate's expense when they issue securities. Therefore, we can consider those fees as a flotation cost.

3 0

2 years ago

Is a worker's human capital and his or her resulting productivity the ONLY determinants of that person's wage or salary?

stich3 [128]

The correct answer is

<span>No, like all resources, supply and demand also affect how much a worker is paid.

For example, a worker doing the same computer job might be paid more in New York than in other places: this has to do with the fact that the demand and supply (in form of workers ready to work in NY for a certain wage) are different in those two places</span>

3 0

3 years ago

If an investment is producing a return that is equal to the required return, the investment's net present value will be:

harina [27]

The net present value would be zero.

Hope this helped! :)

4 0

3 years ago

Zeta corporation just paid a $2.00 dividend. analysts believe that zeta corporation's dividend will grow by 20% next year, and t

Lelechka [254]

I guess the correct answer is $32.14

Zeta Corporation just paid a $2.00 dividend. Analysts believe that Zeta Corporation’s dividend will grow by 20% next year, and then settle into a constant growth regime at 5% per year into the future. If investors assign a required rate of return of 12% to Zeta’s stock, the stock sell for today is $32.14.

3 0

2 years ago