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Amiraneli [1.4K]
3 years ago
15

At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under a ten-year operating lease agree

ment. The contract calls for quarterly rent payments of $28,000 each. The office building was acquired by Lakeside at a cost of $2.3 million and was expected to have a useful life of 25 years with no residual value.
What will be the effect of the lease on Lakeside's earnings for the first year (ignore taxes)?

Lakeside increases its earnings by $__________
Business
1 answer:
iVinArrow [24]3 years ago
6 0

Answer: $20,000

Explanation:

The effect of the lease on Lakeside's earnings will be the difference between the earnings from the lease and the cost of the building which will be depreciation.

Depreciation = 2,300,000/25

= $92,000 per year

Earnings per year;

= 28,000 * 4

= $112,000

Increase in earnings = 112,000 - 92,000

= $20,000

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AJ Manufacturing Company incurred $54,000 of fixed product cost and $43,200 of variable product cost during its first year of op
kvv77 [185]

Answer:

Explanation:

The preparation of the income statement is presented below using the generally accepted accounting Principles (GAAP) :

Sales $176,000

Less: Cost of goods sold ($97,200)         ($54,000 + $43,200)

Gross margin $78,800

Less: Selling and administrative cost ($31,000)    ($17,200 + $13,800)

Net income $47,800

Hence, we considered all the given information

8 0
3 years ago
Crossroad chooses to report a financial asset at its fair value. The asset trades in two different markets; however, neither mar
Alex

Answer:$81

Explanation:

The options given are:

a. $76

b. $80

c. $81

d. $82

If the principal market that is, the market that the greatest volume of activity can't be identified, then the most advantageous market would be used to determine the fair value of a financial asset.

The most advantageous market is the market that has the highest net price, after transaction cost has been considered even though the transaction costs is not included into the fair value. Therefore, the second market gives the highest net price of $80 after the consideration of the transaction costs, hence, it should be utilized for fair value purposes.

The fair value amount include the transaction costs, which give $80 + $1 = $81

The fair value amount is $81.

5 0
2 years ago
Các yếu tố môi trường ảnh hưởng đến ?
natali 33 [55]

Answer:

hejejeusuusywtwnjwiadeahagstahshhshsh shshhshshshshwjwjywywhywuehshsgzjjsgsgshshsjgsgsgshshhsusjsgjsjsjsgsnshysjshfssjg a.c juduuzysuhshsksiaiuwystsia isah sfajaitakawtaiwistdhxnsjishdysyausishzhhzgzgsuhsjshahshsnshzhz

Explanation:

hsjsjsjsjsuuwywuwuwjwusysusnshshshsueuueydjsnzhuzusis7w6wuuwuwjsjjsjxjsjsjeuuehehshsuaoyssyysydydysyshhzshhshshshsusuusueywgahsjusbxvxbcbjduudhyeuuzhbkjgisgnhdh esx scca dh scca exhjdjddjdhdhhdhhdhshdgdhdhshsjhwywhehehshhshshshshshshshysyeyeuggsushshhshshshsgsgdggdgdgdhdysjjszbbdes trasando ksdjjdndbxhxxzhdfdrdes d to love

5 0
3 years ago
Suppose Aiyanna's Pizzeria currently faces a linear demand curve and is charging a very high price per pizza and doing very litt
DedPeter [7]

Answer:

<em>Options Include:</em>

A. demand will become more price elastic.

B. price elasticity of demand will not change as price is lowered.

<em>C. demand will become less price elastic.  is Correct</em>

D. the elasticity of supply will increase.

Explanation:

<em>Typically as a broadly accurate guide, the product is called elastic if the quantity of a good demanded or purchased increases more than the change in price. </em>

(Price increases by + 5%, but demand decreases by -10%). When the shift in the purchased quantity is the same as the price change (say, 10 per cent/10 per cent= 1), the product is said to have price elasticity unit (or unitary).

Eventually, when the purchased quantity changes less than the price (say,-5 per cent demanded for a price change of+ 10 per cent), then the product is called inelastic.

7 0
3 years ago
The current price of Janco stock is $16.77. Dividends are expected to grow at 4.4% indefinitely and the most recent dividend pai
SIZIF [17.4K]

Answer:

Required return= 28.87%

Dividend yield= 24.4658%

Capital gains yield= 4.4%

Explanation:

Required return=(D1/Current price)+Growth rate

=(3.93*1.044)/16.77+0.044

=28.8658%(or 0.2887 approx)

Dividend yield=Dividend for next period/Current price

=(3.93*1.044)/16.77

=24.4658%(or 0.2447 approx)

Capital gains yield=Growth Rate

=4.4%(or 0.044)

5 0
3 years ago
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