Answer:
Over the economic life of the asset.
Explanation:
An asset obtained under a financial lease must be depreciated in the same way as the company would depreciate any other similar fixed asset. E.g. a leased truck should be depreciated similarly to other trucks owned by the company.
In a financial lease, the lessor amortizes the asset's value, while the lessee depreciates the assets as common fixed assets (a lessee doesn't amortize).
Answer:
B
Explanation:
Explain to Zahra that she must report all her business income and expenses.
To qualify for the Earned Income Credit you must have earned income from working for someone or from running or owning a business and meet basic rules.This is a reason for Zahra to report all her business income and expenses.
Answer:
Disallowed loss = 1428.57
Explanation:
given data
Units total cost
17 Apr, 09 1500 20000
8 Dec, 14 -750 -5000
2 Jan, 15 250 1750
2 Jan, 15 50 1000
solution
we get here Broward realized and recognized loss that is
The loss or gain on sale (5000 - 20000 ÷ 2) -5000
Allowed loss (750 ÷ 1050) × 5000 3571.43
Disallowed loss 1428.57
Answer:
The effective rate of interest in the fifth year is 6.15%
Explanation:
Mathematically, the effective rate of interest can be calculated as follows;
Reff = (1 + r/y)^y - 1
where;
r is the interest rate = 6% = 6/100 = 0.06
y is the period = 5 years
Substituting these values;
Reff = (1 + 0.06/5)^5 - 1
Reff = (1 + 0.012)^5 - 1
Reff = 1.012^5 - 1
Reff = 1.061457 - 1
Reff = 0.0615 which is 6.15%
Answer:
answer for the question:
(Related to Checkpoint 18.2) (Estimating the cost of bank credit) Paymaster Enterprises has arranged to finance its seasonal working-capital needs with a short-term bank loan. The loan will carry a rate of 13 percent per annum with interest paid in advance (discounted). In addition, Paymaster must maintain a minimum demand deposit with the bank of 10 percent of the loan balance throughout the term of the loan. If Paymaster plans to borrow $90 comma 000 for a period of 2 months, what is the annualized cost of the bank loan?
is given in the attachment.
Explanation:
