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Olenka [21]
3 years ago
9

Blossom Leasing Company agrees to lease equipment to Blue Corporation on January 1, 2020. The following information relates to t

he lease agreement.
1. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years.
2. The cost of the machinery is $520,000, and the fair value of the asset on January 1, 2020, is $737,000.
3. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $60,000. Blue estimates that the expected residual value at the end of the lease term will be 60,000. Blue amortizes all of its leased equipment on a straight-line basis.
4. The lease agreement requires equal annual rental payments, beginning on January 1, 2020.
5. The collectibility of the lease payments is probable.
6. Blossom desires a 10% rate of return on its investments. Blue’s incremental borrowing rate is 11%, and the lessor’s implicit rate is unknown.

(Assume the accounting period ends on December 31.)

Compute the value of the lease liability to the lessee. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,972.)

Present value of minimum lease payments
$ ?
Business
1 answer:
Serhud [2]3 years ago
4 0

Explanation:

Blossom Leasing Company agrees to lease equipment to Blue Corporation on January 1, 2020. The following information relates to the lease agreement.

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The concept of risk management is based on an assessment of benefits gained compared to the ___:
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Answer:

potential risk/threat

Explanation:

the concept of risk management is based on mitigating risk or avoid potential threat and plans of minimizing the impact should they occur.

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The company currently markets McDog T-bone, Lapdog Lunchtreats, Rover's Potroast, and Puppy Porterhouse in the dog food market.
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Answer:

company's product line in the dog food market

Explanation:

In the description provided, it can be said that Prime Cuts will be an addition to the company's product line in the dog food market. A product line is a group of related products all marketed under a single brand name and are sold by the same company to the same targeted group of consumers. Such as in this scenario, all of the products listed are dog treats/food with different ingredients and are all sold by the same company to people looking for dog food.

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3 years ago
Suppose you are a manager at an advertising agency who is eager to utilize Covey's advice about delegation. Today, you need to w
yan [13]

<u>Answer:</u>

<em>Customer administrations</em><em> supervisors interface an organization's imaginative endeavours with publicists' needs, from driving the main gathering on another record to looking into </em><em>news sources for a crusade</em><em>. </em>

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They keep up associations with administrators of customer organizations, supervise the office's record group over all orders and create procedures for customers.

So, the customer administrations supervisor is responsible for all parts of the conveyance of work to the customer. Be that as it may, the record head's job goes past only giving a customer what he needs.

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3 years ago
Oak Island Amusements Center provides the following data on the costs of maintenance and the number of visitors for the last thr
Semmy [17]

Answer:

a. (i) $1.40

(ii) $190,000

b. $3,410,000

Explanation:

The computation of fixed cost of maintenance annually and the variable cost of maintenance per visitor is shown below:-

a. (i) Variable cost per visitor = (Maintenance cost at highest number of visitors - Maintenance cost at lowest number of visitors) ÷ (Highest number of visitor - Lowest number of visitor)

= ($3,830,000 - $2,773,000) ÷ ($2,600,000 - $1,845,000)

= $1,057,000 ÷ $755,000

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= $2,773,000 - $1,845,000 × $1.40

= $2,773,000 - $2,583,000

= $190,000

b. The computation of estimated maintenance costs is shown below:-

Estimated maintenance costs = Fixed costs + Variable cost per visitors × Number of visitors

= $190,000 + 2,300,000 × $1.40

= $190,000 + $3,220,000

= $3,410,000

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3 years ago
According to the Uniform Commercial Code's interpretation of an open quantity term, if the quantity term is left open in a contr
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According to the Uniform Commercial Code's interpretation of an open quantity term, if the quantity term is left open in a contract for the sale of goods courts generally have no basis for determining a remedy.

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The uniform Commercial code states that a sale consists of the passing of title from the seller to the buyer for a price.

According to the Uniform Commercial code's interpretation of an open quantity term, if the quantity term is left open in a contract for the sale of goods, courts have no basis for the determination of remedy.

Learn more about uniform commercial code here:

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2 years ago
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