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Sergeeva-Olga [200]
2 years ago
5

A company is deciding between two options: (1) purchase a piece of equipment for $10,000 or (2) lease the same piece of equipmen

t for three years and then return the equipment to the owner. The lease payments are $182.53 per month and have a present value of $6,000. If the company decides to lease, for what amount would the leased asset be recorded at the beginning of the lease?
a) $10,000.
b) $6,000
c) $4,000.
d) $6,571.
Business
1 answer:
saul85 [17]2 years ago
7 0

Answer:

b) $6,000

Explanation:

The computation of the leased asset to be recorded at the beginning of the lease is shown below:

= Present value

= $6,000

In the case when the asset recognized under lease, so the present value would be determined

Therefore the same is to be considered

Hence, the correct option is b.

And, the rest of the options are incorrect

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Answer:

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(C) Flexible exchange rate distorts incentives for importing and exporting goods and services. What are these incentives? On the government side, it is either the revenue that government makes from import tariffs and duties OR the subsidy that government pays on exported goods. On the importer/exporter side, it is the custom duties paid by importers on imported goods AND the subsidies enjoyed by exporters on exported products. A flexible exchange rate distorts or fluctuates these incentives.

(D) Flexible exchange rate enables policy makers to engage in monetary policy. Now, monetary policy is a tool used by ministers of finance or policy makers in every country; to regulate (increase or reduce or bring back to normal) spending and investment. If the exchange rate between or among countries were fixed, monetary policies would have limited application or usefulness when implemented. A flexible exchange rate encourages and enables engagement in or use of monetary policies.

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return on stockholders' equity = ($1,429,000 - $36,000) / $10,489,500 = 13.28%

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