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katrin [286]
2 years ago
5

On January 1, 2018, Gibson Corporation entered into a four-year operating lease. The payments were as follows: $20,000 for 2018,

$18,000 for 2019, $16,000 for 2020, and $14,000 for 2021. What is the correct amount of total lease expense for 2019
Business
1 answer:
antiseptic1488 [7]2 years ago
3 0

Based on accounting principles, the correct amount for total lease expense in 2019 is<u> $17,000.</u>

<h3>Why is this the correct amount?</h3>

Accounting principles state that lease payments must be recorded as an equal amount over the years of the lease.

The total lease payment is:

= 20,000 + 18,000 + 16,000 + 14,000

= $68,000

Annual payment is:

= 68,000 / 4

= $17,000

Find out more on lease payments at brainly.com/question/5563107.

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Sunlight Design Corporation sells glass vases at a wholesale price of $4.50 per unit. The variable cost to manufacture is $1.75
guapka [62]

Answer:

D) 5182 glass vases

Explanation:

<em>Contribution per glass vases:</em>

$4.5 selling price - $ 1.75 variable cost= 2.75

<em>Operating income:</em>

29,000 units x $ 2.75 - $ 8,500 = $71,250 operating income

<em>Target income is to obtain a 20% increase:</em>

71,250 x (1 + 20%) = 85,500 target income:

<em>units needed for target income:</em>

(85,500 target income + 8,500 fixed cost) / 2.75 contribution per unit= 34.181,81

aditional glass vases needed for target income:

34,182 - 29,000 = 5,182

3 0
2 years ago
Tax that you pay when making a profit from selling a house is an example of:
UkoKoshka [18]
Tax that you pay when making a profit from selling a house is an example of: <span>A. Capital Gains Tax 
Every time you sell an asset that is not under investment category, The difference between your selling price with the initial cost when you buy that asset should be recorded as a Capital Gain.
In United states, you're inclined to pay around 28 % from the total capital gain as Capital Gain Tax</span>
4 0
3 years ago
Read 2 more answers
The members of a certain business run the risk of losing their personal property should the enterprise fail. This is because the
OleMash [197]
I believe the answer is 2/b, have limited liability. this is because they are paying for insurance, which only gives them a limited amount of times where they can ask for a payout before the insurance either skyrockets, or your plan is cancelled because you are deemed a flight risk. hope that helped!
5 0
3 years ago
Abarrier along the open sides of stairways and platforms that prevent falling is
kotykmax [81]
Stair rails is a barrier along the open sides of stairways and platforms that prevent falling is
4 0
3 years ago
A stock has a beta of 1.4, an expected return of 17.2 percent, and lies on the security market line. A risk-free asset is yieldi
andrew-mc [135]

Answer:

the portfolio's return will be Ep(r)= 9.2 %

Explanation:

if the stock lies on the security market line , then the expected return will be

Ep(r) = rf + β*( E(M)- rf)

where

Ep(r) = expected return of the portfolio

rf= risk free return

E(M) = expected return of the market

β = portfolio's beta

then

Ep(r) = rf + β*( E(M)- rf)

E(M) = (Ep(r) - rf ) / β + rf

replacing values

E(M) = (Ep(r) - rf ) / β + rf

E(M) = ( 17.2% - 3.2%) /1.4 + 3.2% = 13.2%

since the stock and the risk free asset belongs to the security market line , a combination of both will also lie in this line, then the previous equation of expected return also applies.

Thus for a portfolio of β=0.6

Ep(r) = rf + β*( E(M)- rf) = 3.2% + 0.6*(13.2%-3.2%) = 9.2 %

Ep(r)= 9.2 %

5 0
3 years ago
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