Answer: $235,844
Explanation:
Interest revenue = Total lease payments - Fair value of equipment
The lease payments are constant and so are an annuity and will be an annuity due because the first lease payment of such leases are made immediately.
Present value of lease payments = Annuity * Present value factor of Annuity due, 5 years, 12%
989,065 = Annuity * 4.0373
Annuity = 989,065 / 4.0373
= $244,981.79
Total lease payments = Lease payments * number of years
= 244,981.79 * 5
= $1,224,908.95
Interest revenue = 1,224,908.95 - 989,065
= $235,843.95
= $235,844
Answer:
$9120
Explanation:
Using sum of years digit,
5+4+3+2+1=15
5/15*(72000-3600)=22800 for first year
4/15*68400 = 18240 for second year
Total depreciation before change of accounting policy = 22800+18240=41040
Net value of asset at start of 2018 = 68400-41040= 27360
Straight line depreciation for 2018 = 27360/3 = 9120
Answer:
Automatic stabilizers
Explanation:
Examples of automatic stabilizers are income tax and government welfare spending. They adjust immediately to minimise the effect of fluctuations in the economy.
For example in a recession, income tax reduces and government welfare spending increases. In a boom, income tax increases and government welfare spending falls.
I hope my answer helps you
Explanation:
service life refers to the time an asset will be used by a company and physical life refers to how long the asset will last.
Answer:
$357 Unfavorable
Explanation:
Fixed manufacturing overhead volume variance identifies the amount by which actual production differs from budgeted production.
<em>Fixed manufacturing overhead volume variance = Actual Output at Budgeted rate - Budgeted Fixed Overheads</em>
= (5,230 × $5.10) - ($5.10 × 5,300)
= $26,673 - $27,030
= $357 Unfavorable
