Answer:
Cole should record amortization expense for the leased machine at $9,000.
Explanation:
Machine cost would be recorded in book at = present value of Aggregate lease payments
Machine cost would be recorded in book at = $108,000
Depreciation (amortization) expense for the leased machine in first year= (Machine cost - salvage value)/Useful life
Depreciation (amortization) expense for the leased machine in first year= ($108,000 - 0)/12
Depreciation (amortization) expense for the leased machine in first year= $ 9,000
Therefore, Cole should record amortization expense for the leased machine at $9,000.
Answer:
Compounded annually:
24820 = x * (1.08^3) = 1.259712x
x = 24820/1.259712 = $19703
Compounded quarterly:
24820 = x*(1.02)^12 = 1.26824x
x = 24820/1.26824 = $19570
Explanation:
I hope you can understand better and no need for further explanation.
Answer:
The correct answer is letter "D": the firm should change to a different line of business.
Explanation:
Economic profit is the difference between the revenue a firm earns from sales and the firm's total opportunity costs. It is important to distinguish between accounting profit and economic profit. Accounting profit is total revenue minus the explicit costs of producing goods or services. Economic profit includes the opportunity costs a company losses or gains by choosing a route to pursue revenue. If a firm has an economic profit of zero, it implies the company should start looking for alternative ways to generate income.
Answer:
A gain has a Credit balance and is shown on the Income Statement. C. A loss has a Debit balance and is shown on the Income Statement.
Explanation:
As we know that the revenues and gains contains the normal credit balance while on the other hand the expenses and losses contains the normal debit balance and both are reported on the income statement
The gain would be reported on the credit side of the income statement and the loss would be reported on the debit side of the income statement
So the same is relevant too
