Source Inc. (lessor) entered in a lease agreement of equipment for a 5-year period with Lemon Inc. (lessee). The lease is properly classified as an operating lease by Source Inc. Lease payments were structured as follows: Year One: $6,000 Year Two: $12,000 Year Three: $10,000 Year Four: $10,000 Year Five: $12,500 What is the amount of lease revenue recognized in Year One and Year Two by Sorenstam Inc.

Answers

Answer 1

Answer:

the amount of lease revenue recognized is $10,100

Explanation:

The computation of the amount lease revenue recognized in Year One and Year Two by Sorenstam Inc. is shown below:

= (First year payment + second year payment + third year payment + fourth year payment + fifth year payment) ÷ number of years

= ($6,000 + $12,000 + $10,000 + $10,000 + $12,500) ÷ 5 years

= $10,100

Hence, the amount of lease revenue recognized is $10,100


Related Questions

Olsen Outfitters Inc. believes that its optimal capital structure consists of 65% common equity and 35% debt, and its tax rate is 40%. Olsen must raise additional capital to fund its upcoming expansion. The firm will have $2 million of retained earnings with a cost of rs = 12%. New common stock in an amount up to $7 million would have a cost of re = 16%. Furthermore, Olsen can raise up to $2 million of debt at an interest rate of rd = 10%, and an additional $5 million of debt at rd = 12%. The CFO estimates that a proposed expansion would require an investment of $5.7 million.

Required:
What is the WACC for the last dollar raised to complete the expansion? Round your answer to two decimal places.

Answers

Answer: 12.5%

Explanation:

Amount that will be raised with Equity = 65% * 5,700,000 = $3,705,000

This is more than the retained earnings so new equity will have to be issued at cost of 16%

Amount raised by debt = 35% * 5,700,000 = $1,995,000

Less than $2 million so cost of debt is 10%

WACC = cost of equity * weight of equity + weight of debt * cost of debt * ( 1 - tax rate)

= (16% * 65% ) + (35% * 10% * (1 - 40% tax))

= 12.5%

Benson Corporation manufactures car stereos. It is a division of Berna Motors, which manufactures vehicles. Benson sells car stereos to Berna, as well as to other vehicle manufacturers and retail stores. The following information is available for Benson's standard unit: variable cost per unit $37, fixed cost per unit $23, and selling price to outside customer $86. Berna currently purchases a standard unit from an outside supplier for $80. Because of quality concerns and to ensure a reliable supply, the top management of Berna has ordered Benson to provide 200,000 units per year at a transfer price of $35 per unit. Benson is already operating at full capacity. Benson can avoid $3 per unit of variable selling costs by selling the unit internally.
1. What is the minimum transfer price that Benson should accept? ,
2. What is the potential loss to the corporation as a whole resulting from this forced transfer?

Answers

Answer:

Potential loss to the whole corporation = $(60,000)

Explanation:

The Benson  Division is operating at full capacity, hence it has no excess capacity .

This implies that it can not produce enough to meet both demand of  internal and external buyers.

Hence, Benson Division  cannot accommodate the demands of the Berna Division at a price lower than the external price, because it will result to a loss in contribution.

To maximize and optimize the group's profit in this scenario, the minimum transfer should be:

Minimum transfer price = External selling price - savings in selling cost resulting from in internal transfer

= $86-3= 83

Minimum transfer price = $83.

Effect on Group's profit

Any unit transferred at a priced lower than $83 would result in a unit loss to the Benson Division equal to $83 minus the transfer  price.

Any unit transferred to Berna at a price lower that its current purchase cost would save the division an amount equal to the current purchase cost  minus the forced transfer price.

The potential loss to the organization as a whole would be computed as the net effect of the following:

Lost contribution by Benson : The difference between the Minimum transfer price and the transfer imposed by the group company multiplied by the quantity transferred.

Savings made by the Berna Division : The difference between the forced transfer price and current purchase of Berna.

We can summarize the effect of the forced transfer price on the whole corporation as follows:

Lost contribution per unit = 83 - 35= 48 .

Savings made per unit = 80 - 35 = 45

                                                                                       $

Total lost contribution by Benson

(48 × 200,000)                                                         (960,000)            

Savings made by Berna as result of the transfer

(45 × 200,000)                                                          900,000

Potential loss to the group                                       (60,000)

Potential loss to the whole corporation = $(60,000)

An institution is a significant practice, relationship, or organization in a society. Institutions shape the environment in which decisions are made, and they affect production and income in a nation. The most significant institutions are private property rights, political stability and the rule of law, open and competitive markets, efficient taxes, and stable money and stable prices.

Required:
The single greatest incentive for voluntary production is the existence of:______

Answers

Answer:

Private property rights

Explanation:

The Private property rights are the key that should be considered for the individuals and the country. Also it would given the feeling of pride and inclusion

Moreover, it would include all the cost and the benefits that could be involved in the decision making at the time when it would be decided which resource should be used  

Hence, the above represent the answer

Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:
Total budgeted fixed overhead cost for the year $530,400
Actual fixed overhead cost for the year $521,000
Budgeted standard direct labor-hours (denominator level of activity) 68,000
Actual direct labor-hours 69,000
Standard direct labor-hours allowed for the actual output 66,000
Required:
1. Compute the fixed portion of the predetermined overhead rate for the year.
2. Compute the fixed overhead budget variance and volume variance.

Answers

Answer:

See below

Explanation:

1. Predetermined overhead rate

= Total fixed overhead cost for the year / Budgeted standard direct labor hour

Predetermined overhead rate = $530,400 / 68,000

Predetermined overhead rate

= $7.8 per direct labor hour

2. i. Fixed overhead budget variance

= Actual fixed overhead - Budgeted fixed overhead

= $521,000 - $530,400

= $9,400 favourable

ii Fixed overhead volume variance

= Budgeter fixed overhead - Fixed overhead applied to work in process

= $530,400 - (66,000 × $7.8)

= $530,000 - $514,800

= $15,200 unfavorable

Elite Inc. is as a brand of luxury clothing and accessories, and it targets affluent working women. However, it alters its offerings to include a large proportion of standard clothes at cheaper prices when the country faces severe recessionary pressures. In this scenario, which of the following environments does Elite primarily respond to by changing its offerings?

a. legal
b. competitive
c. cooperative
d. economic

Answers

d.economic


ithink so

The purpose of this assignment is to build an analysis model to explore what-if scenarios when buying a new car. We will consider two types of vehicles on the market: Gasoline powered vehicles that operate solely using gasoline. Fully electric vehicles that operate solely on battery-stored power and use no gasoline. The batteries are charged by plugging in to an external power source.

Answers

Answer:

The decision to choose specific type of vehicle will be based on the mileage, cost, environmental effects and driving experience.

Explanation:

There are two types of vehicles, one operate on gasoline and others operate on electricity. Both of the vehicles are used by the people but since gasoline vehicles are most commonly used people prefer buying this type of vehicle. Electric vehicles are also gaining significance in todays world as it saves natural resource like oil and the vehicle is energy efficient so gives better mileage.

We have the following information for the Valverde company. The stock pays a $1 dividend and it will grow by 12% the first year, 9% the second year and 3% forever after that. The unlevered bheta is 1, D/E is 75/25 and the tax rate is .3. Additionally, we know the treasury bond rate is 0.04 and the ROR of the S&P has been 10%.

Required:
Derive the stock price of Valverde.

Answers

Answer:

P0 = $5.99394080634  rounded off to $5.99

Explanation:

The dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under DDM is,

P0 = D1 / (1+r)  +  D2 / (1+r)^2  +  ...  +  Dn / (1+r)^n  +  [(Dn * (1+g) / (r - g)) / (1+r)^n]

Where,

D1, D2, ... , Dn is the dividend expected in Year 1,2 and so on g is the constant growth rate in dividends r is the discount rate or required rate of return

We first need to calculate the levered beta of Valverde.

Levered Beta = Unlevered Beta * [1+ (1-tax rate) * (Debt/Equity)]

Levered Beta = 1 * [(1 + (1 - 0.3) * (75/25)]

Levered Beta = 3.1

We first need to calculate the cost of equity (r) using the CAPM equation. The equation is,

r = risk free rate  +  Levered Beta  *  (Expected return on Market - risk free rate)

We know that the risk free rate is 0.04 or 4%, the beta is 3.1 and the expected return on market is 0.1 or 10%.

r = 0.04  +  3.1  *  (0.1 - 0.04)

r = 0.226 or 22.6%

Now, using the DDM equation, the price of stock will be,

P0 = 1 * (1+0.12) / (1+0.226)  +  1 * (1+0.12) * (1+0.09) / (1+0.226)^2  +  

[(1 * (1+0.12) * (1+0.09) * (1+0.03) / (0.226 - 0.03)) / (1+0.226)^2]

P0 = $5.99394080634  rounded off to $5.99

P0 = $99.2830  rounded off to $99.28

In order to motivate our sales force to increase sales, we decided to increase our commissions and salaries and increase marketing. At the same time, our supplier increased its prices, and we felt we could pass that cost increase on to our customers in the form of price increase. However, with the additional pressure to make sales, coupled with the increased sales price, we had to loosen credit terms on sales. We also had to lease a little more distribution space and acquire another truck to handle the volume increase. Our shipping expense relates to gasoline on deliveries. Luckily, gas prices went down from what we originally expected this year.
In the table below, classify EACH ACCOUNT on the budget according to whether the variances in the performance report are consistent or inconsistent with the client’s story, or unexplained by the client’s story. Place an "X" in the appropriate column. If the Revenue/Spending Variance and Activity Variance differ with respect to one account (i.e., one is consistent and one is inconsistent) then indicate which belongs in which column.
Consistent
Inconsistent
Unexplained
Sales revenue
Cost of Goods Sold
Commission
Shipping Expense
Bad debt expense
Salaries
Lease of distribution center
Depreciation of fleet and equip
Advertising
Office rent, phone, internet

Answers

Answer:

Sales Revenue - Inconsistent

Cost of Goods Sold - Inconsistent

Commission - Consistent

Shipping expense - Inconsistent

Bad debt expense - Unexplained

Salaries - Consistent

Lease of distribution center - Consistent

Depreciation of fleet and equipment - Inconsistent

Advertising - Consistent

Office rent, Phone, Internet - Inconsistent

Explanation:

The increase in selling price will result in change in the revenue figure. The cost of distribution is increased due to handling the addition volume. This will result in an increase in shipping expense and cost of goods sold. Salaries and  commission of the staff will remain consistent as there will be no change due to increase of selling price.

3.1 Define 'democracy'

Answers

A democracy means rule by the people. The name is used for different forms of government, where the people can take part in the decisions that affect the way their community is run.

Democracy is when the people of a country are ruled by majority of the people in that country. Democracy can be defined as government for the people, by the people and for the people.

What are the advantages of democracy?Citizens of a country are allowed to make decisions on matters that concern them. It enhances the accountability of the leaders to the people.

To learn more about democracy, please check:

https://brainly.com/question/22468379

Determine whether certain products are likely sold in a monopoly, perfectly competitive or monopolistically competitive markets.

a. There are a small number of producers of deodorant. Each firm's products are slightly different. For example, some are lavender scented, while others are citrus scented. Would you expect that the market for deodorant is a monopoly, perfectly competitive or monopolistically competitive? Why?
b. There are many producers of soybeans, and each farmer's soybeans are indistinguishable from his or her neighbor's soybeans. Would you expect that the market for soybeans is a monopoly, perfectly competitive or monopolistically competitive? Why?
c. There are many producers of roasted coffee beans, and each roaster has its own special roasting technique. Coffee beans purchased from one roaster are noticeably different from beans purchased from another roaster. Would you expect that the market for roasted coffee beans is a monopoly, perfectly competitive or monopolistically competitive? Why?
d. There is a sole firm providing power in Tampa Florida. The firms price is regulated by the government. Would you expect that the firm providing power in Tampa is a monopoly, perfectly competitive or monopolistically competitive? Why?

Answers

Answer:

monopolistically competitive

a monopolistically competitive is characterised by differentiated goods. A monopoly has only one seller. So, the market for deodorants is not a monopoly because there are plenty sellers

perfectly competitive industry sells homogenous products. The deodorants differ by smell. Thus it is not a perfect competition

b. Perfect competition

there are many sellers and the goods sold are homogenous

c. monopolistically competitive

the coffee beams are differentiated and there are many sellers

d. monopoly

there is only one seller

Explanation:

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.  

In the long run, firms earn zero economic profit.  If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.  

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.  

A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopoly has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.

An example of monopolistic competition are restaurants  

A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.

An example of a monopoly is a utility company

Bramble Corp. had 2500000 shares of common stock outstanding on January 1 and December 31, 2021. In connection with the acquisition of a subsidiary company in June 2020, Bramble is required to issue 96000 additional shares of its common stock on July 1, 2022, to the former owners of the subsidiary. Bramble paid $195000 in preferred stock dividends in 2021, and reported net income of $3470000 for the year. Bramble's diluted earnings per share for 2021 should be (rounded to the nearest penny)

Answers

Answer:

$1.47

Explanation:

Diluted earnings per share = Earnings before preferred stock dividends ÷ Weighted Average Number of Common Stock Outstanding

where,

Earnings before preferred stock dividends is calculated as :

Net Income                                                                   $3,470,000

Add Preferred Stock Dividends                                      $195,000

Earnings attributable to Common Stock holders      $3,665,000

Weighted Average Number of Common Stock Outstanding is calculated as :

Outstanding end of  the year                                        2,500,000 shares

therefore,

Diluted earnings per share = $3,665,000 / 2,500,000 shares = $1.47

Stephanie Robbins is attempting to perform an inventory analysis on one of her most popular products. Annual demand for this product is​ 5,000 units; carrying cost is​ $50 per unit per​ year; order costs for her company typically run nearly​ $30 per​ order; and lead time averages 10 days.​ (Assume 250 working days per​ year.) ​a) The economic order quantity is ​b) The average inventory is ​c) The optimal number of orders per year is ​d) The optimal number of working days between orders is ​e) The total annual inventory cost​ (carrying costordering ​cost) is ​ ​f) The reorder point is

Answers

Solution :

Given :

The annual demand, [tex]$D=5000$[/tex] units

Ordering cost, [tex]$S=\$30$[/tex]

Carrying cost, [tex]$H=\$50$[/tex]

Lead time, L = 10 days

Number of days per year = 250 days

So, average demand is d = [tex]$\frac{D}{250}$[/tex] days

                                         = [tex]$\frac{5000}{250}$[/tex]  = 20 units

a). The economic order quantity, Q = [tex]$\sqrt{\frac{2DS}{H}}$[/tex]

                                                               [tex]$=\sqrt{\frac{2\times 5000 \times 30}{50}}$[/tex]

                                                               = 77 units

b). Average inventory = [tex]$\frac{Q}{2}$[/tex]

                                    [tex]$=\frac{77}{2}$[/tex]

                                    ≈ 39 units

c). Number of orders per year = [tex]$\frac{D}{Q}$[/tex]

                                                  [tex]$=\frac{5000}{77}$[/tex]

                                                  = 65 units

d). Time between orders = [tex]$\frac{Q}{D}$[/tex]  x number of days per year

                                         [tex]$=\frac{77}{5000} \times250$[/tex]

                                        = 3.85

e). Annual ordering cost = [tex]$\frac{D}{Q} \times S$[/tex]

                                        [tex]$=\frac{5000}{77} \times 30$[/tex]

                                        = $ 1948.05

    Annual carrying cost = [tex]$\frac{Q}{2} \times H$[/tex]

                                        [tex]$=\frac{77}{2} \times 50$[/tex]

                                          = $ 1925

    Total annual cost of inventory = $ 1948.05 + $ 1925

                                                       = $ 3873.05

f). Reorder point = [tex]$d \times L$[/tex]

                           [tex]$=20 \times 10$[/tex]

                           [tex]$=200$[/tex] units

An investor deposits 50 in an investment account on January 1. The following summarizes the activity in the account during the year: DateValue Immediately Before DepositDeposit March 154020 June 18080 October 117575 On June 30, the value of the account is 157.50. On December 31, the value of the account is X. Using the time-weighted method, the equivalent annual effective yield during the first 6 months is equal to the (time-weighted) annual effective yield during the entire 1-year period. Calculate X.

Answers

Answer:

236.25

Explanation:

Calculation to determine X

First step is to calculate the 6 months Yield

6 month Yield=(40/40+20) (80/40+20) (157.60/80+80)+1)

6 month Yield=(40/60) (80/60) (157.60/160)-1

6 month Yield=5%

Second step is to calculate the Annual equivalent

Annual equivalent=(1.05)^2-1

Annual equivalent=10.25%

Third step is to calculate the 1 year yield

1 year yield=(40/50) (80/40+20) (175/80+80) (x/175+75)

1 year yield=(40/50) (80/60) (175/160) (x/250)-1

1 year yield=0.1025

Now Let calculate X

x(0.004667)=1+.1025

x(0.004667)=1.1025

x=1.1025/0.004667

x=236.25

Therefore X is 236.25

Mazie Supply Company uses the percent of accounts receivable method to determine their Allowance for Uncollectible Accounts. On December 31, it has outstanding accounts receivable of $55,000, and it estimates that 2% will be uncollectible. Prepare the year-end adjusting entry to record bad debt expense under the assumption that the Allowance for Uncollectible Accounts has (a) a $415 credit balance before the adjusting entry and (b) a $291 debit balance before the adjusting entry.

Answers

Answer:

A. Dr Bad debts expense $685

Cr Allowance for doubtful accounts $685

B. Dr Bad debts expense $1,391

Cr Allowance for doubtful accounts $1,391

Explanation:

A. Preparation of the year-end adjusting entry to record bad debt expense if the Allowance for Uncollectible Accounts has a $415 credit balance before the adjusting entry

Dr Bad debts expense $685

Cr Allowance for doubtful accounts $685

[(2%*$55,000)-$415]

($1100-$415)

B. Preparation of the year-end adjusting entry to record bad debt expense if the Allowance for Uncollectible Accounts has a $291 debit balance before the adjusting entry

Dr Bad debts expense $1,391

Cr Allowance for doubtful accounts $1,391

[(2%*$55,000)+$291]

($1100+$291)

Arrange strategic planning analysis in correct order.
Business Planning
Corporate Planning
Product Planning
Division Planning

Answers

i would say
division planning
product planning
business planning
corporate planning

The stockholders’ equity section of Concord Corporation’s balance sheet at December 31 is presented here.

Concord Corporation Balance Sheet(partial)
Stockholders’ equity:

Paid-in capital
Preferred stock, cumulative, 8,000 shares authorized, 4,800 shares issued and outstanding $384,000
Common stock, no par, 870,000 shares authorized, 580,000 shares issued 2,900,000
Total paid-in capital 3,284,000
Retained earnings 1,858,000
Total paid-in capital and retained earnings 5,142,000
Less: Treasury stock (8,000 common shares) 52,800
Total stockholders’ equity $5,089,200

From a review of the stockholders’ equity section, answer the following questions.

a. How many shares of common stock are outstanding?
b. Assuming there is a stated value, what is the stated value of the common stock?
c. What is the par value of the preferred stock?
d. If the annual dividend on preferred stock is $36,000, what is the dividend rate on preferred stock?
e. If dividends of $72,000 were in arrears on preferred stock, what would be the balance reported for retained earnings?

Answers

Answer and Explanation:

The computation is shown below;

a.  

No of Common Stock Outstanding = No. of stocks issued - Treasury stock

= 580,000 shares  - 8,000 shares

= 572,000 shares  

b. Stated Value of Common Stock = $2,900,000 ÷ 580,000 shares

= $5 per share

c.  Par Value of the Preferred Stock = $384,000 ÷ 4,800 shares

= $80 per share

d. Dividend Rate = $36,000 ÷ $384,000

= 9.375%

e. The retained earning after arrears on preferred stock would remain the same i.e. $1,858,000 as they are declared  

In the B2B market, General Motors Company, Anheuser-Busch, and Kraft all purchase raw materials from their upstream suppliers, make and then sell their own finished products to consumers. In terms of business customers, these three companies are all examples of _____ in the B2B market.

Answers

Answer:

Producers.

Explanation:

B2B (business-to-business) is a marketing strategy that deals with meeting the needs of other businesses, by selling products or services to the organizations for resale to other consumers, used in production of goods or for the operation of an organisation.

In terms of business customers, these three companies are all examples of producers in the B2B market because they all purchase raw materials from their upstream suppliers, subsequently, they make and then sell their own finished products to the end users or consumers.

Corey is the city sales manager for RIBS, a national fast food franchise. Every working day, Corey drives his car as follows: Miles Home to office 20 Office to RIBS No. 1 15 RIBS No. 1 to No. 2 18 RIBS No. 2 to No. 3 13 RIBS No. 3 to home 30 Corey renders an adequate accounting to his employer. As a result, Corey's reimburseable mileage is: a.0 miles. b.46 miles. c.76 miles. d.66 miles.

Answers

Answer:

b.46 miles

Explanation:

Calculation to determine Corey's reimburseable mileage

Corey's reimburseable mileage= 15 miles + 18 miles + 13 miles

Corey's reimburseable mileage = 46 miles

Therefore As a result, Corey's reimburseable mileage is 46 miles

On March 31, 2021, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,000,000 in cash. The book values and fair values of Barney’s assets and liabilities were as follows:
Book Value FairValue
Current assets $ 6,000,000 $7,500,000
Property, plant, and equipment 11,000,000 14,000,000
Other assets 1,000,000 1,500,000
Current liabilities 4,000,000 4,000,000
Long-term liabilities 6,000,000 5,500,000
Required:
Calculate the amount paid for goodwill.

Answers

Answer:

the amount paid for goodwill is $3,500,000

Explanation:

The computation of the amount paid for goodwill is given below

But before that the net fair value of assets would be determined

Net fair value of assets purchased is

= ($7,500,000 + $14,000,000 + $1,500,000) - ($4,000,000 + $5,500,000)

= $13,500,000

Now Amount paid for goodwill is

= $17,000,000 - $13,500,000

= $3,500,000

Hence the amount paid for goodwill is $3,500,000

¿Por que muchas culturas tuvieron la necesidad de construir muebles? explique ​

Answers

Answer:

Los muebles tenían muchos adornos de flores y árboles. Las piezas solían ser asimétricas y tenían líneas curvas. La mayoría de los fabricantes usaban caoba y nogal, con un acabado pulido. La mayoría de las piezas eran muy caras porque se producían a mano

Explanation:

que lo que pienso espero sea de ayuda

Parkinson Company (PC) had a beginning balance of $86,000 and an ending balance of $90,000 in itslong-term marketable securities account. During the period the Company paid $10,000 to purchase marketable securities. If the Company reported a gain on the sale of marketable securities of $1,000 the amount of the cash inflow from the sale of securities is

Answers

Answer:

the cash inflow from the sale of securities is $7,000

Explanation:

The computation of the cash inflow from the sale of securities is shown below:

= Opening balance + purchase marketable securities + gain on the sale of marketable securities - ending balance

= $86,000 + $10,000 + $1,000 - $90,000

= $97,000 - $90,000

= $7,000

hence, the cash inflow from the sale of securities is $7,000

a. State and describe the concept that leads to "conflict of goals between a firm's managers and its shareholders. Give a modern day example of this concept, and discuss some potential solutions.
b. State and describe the concept that states, "factors of production are somewhat immobile." Give an example with detail.

Answers

Answer: See explanation

Explanation:

a. State and describe the concept that leads to "conflict of goals between a firm's managers and its shareholders. Give a modern day example of this concept, and discuss some potential solutions.

This is referred to as the agency problem. This brings about conflict of goals between the manager and the shareholders. An example is when the managers use the resources of the company for their own personal benefits or in a scenario whereby the managers fake the earnings so that the stock prices will rise temporarily.

b. State and describe the concept that states, "factors of production are somewhat immobile." Give an example with detail.

This is referred to as imperfect market theory. When transferring labor, capital or other resources, there are costs attached to the transfer and restrictions as well. .

5 questions you would ask your self before writing a business plan

Answers

1) Do I have what it takes to make it as a business owner?

2) What is my niche and who is my target customer?

3) Who will be on my team to help with my new business?

4) What amount of funding do I need to start?

5) What business structure should I choose?

Which of the following show negative cash flow?

Answers

Answer:

where are the answer choices

Which of the following is not true of taxable asset purchases?
a. Net operating losses carry over to the acquiring firm.
b. The acquiring firm may step up its basis in the acquired assets.
c. Target firm shareholders are subject to a potential immediate tax liability.
d. Target firm net operating losses and tax credits cannot be transferred to the acquiring firm.
e. None of the above

Answers

Answer:

e. None of the above

Explanation:

The taxable asset purchases allows the individual to increase or step up the tax basis of acquired assets so as to reflect the price of the purchases made.

If one buy an assets, then he or she wants to allocate total purchase price in a way which gives a favorable postacquisition tax results.

In case of taxable asset purchases, the tax credits or the net operating losses cannot be transferred from the target firm to the acquiring firm.

The net operating loss carries over to the acquiring firm is not true of a taxable transaction.

What is an asset?

An asset may be defined as any source owned by any individual or business that provides a long-term benefit that usually lasts for at least one year.

In a taxable asset purchase, net operating losses are not acquired by the firm. All the other statements are true for the taxable asset purchase.

Therefore, A is the correct option.      

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Hill Corporation issued $2,100,000 of 8% bonds at 98 on January 2, 2019. Interest is paid semiannually on June 30 and December 31. The bonds had a 10-year life from the date of issue, and the company uses the straight-line method of amortization. On March 31, 2022, Hill recalls the bonds at the call price of 107 plus accrued interest.

Required:
Prepare the journal entries to record the reacquisition (recall) of Hill's bonds.

Answers

Answer:

Hill Corporation

Journal Entries

March 31, 2022:

Debit Bond Liability $2,247,000

Debit Interest Payable $42,000

Credit Cash $2,289,000

To record the recall of the bonds, including accrued interest.

Explanation:

a) Data and Calculations:

January 2, 2019: Face value of bonds issued = $2,100,000

Proceeds from the issue of the bonds at 98 =    2,058,000

Discount from the issue =                                        $42,000

Semi-annual amortization under straight-line = $2,100 ($42,000/20)

Coupon interest rate = 8% with payment made semiannually

Annual interest payment = $168,000 ($2,100,000 * 8%)

Semiannual interest payment = $84,000 ($2,100,000 * 4%)

Bonds duration = 10 years

March 31, 2022 Recall price of 107 = $2,247,000

Accrued interest from January 1 to March 31 = $42,000

Total payment to bondholders = $2,289,000

Cala Manufacturing purchases land for $357,000 as part of its plans to build a new plant. The company pays $44,900 to tear down an old building on the lot and $66,374 to fill and level the lot. It also pays construction costs $1,616,200 for the new building and $102,019 for lighting and paving a parking area. Prepare a single journal entry to record these costs incurred by Cala, all of which are paid in cash.

Answers

Answer and Explanation:

The journal entry to record the given cost is shown below:

Land Dr  ($357,000 + $44,900 + $66,374) $468,274

Building Dr $1,616,200

Land improvement Dr $102,019

    To Cash $2,186,493

(being the cash paid is recorded)

Here land, building & land improvement is debited as it increased the assets and credited the cash as it decreased the assets

Two methods can be used to produce expansion anchors. Method A costs $80,000 initially and will have a $15,000 salvage value after 3 years. The op-erating cost with this method will be $30,000 in year 1, increasing by $4000 each year. Method B will have a first cost of $120,000, an operating cost of $8000 in year 1, increasing by $6500 each year, and a $40,000 salvage value after its 3-year life. At an interest rate of 12% per year, which method should be used on the basis of a present worth analysis

Answers

Answer:

Method B should be used

Explanation:

Note: See the attached excel file for the calculation of the present worth (in bold red color) of Methods A and B.

From the attached excel file, we have:

Present worth of Method A = –$150,261.25

Present worth of Method B = –$125,178.34

Since the present worth of Method B of –$125,178.34 is lower than the present worth of Method A of –$150,261.25, it implies that Method B cost is less and more attractive at an interest rate of 12% per year than Method A cost. Therefore, Method B should be used.

How can World Literature help a businessman or a top executive in a multinational corporation? Will an interest in books be an advantage or a drawback for him/her?

Answers

Answer:

Explanation:

World literature has many pros for those interested in it. For a businessman in a multinational corporation, it allows them to understand and learn about diverse cultures, their beliefs, traits, habits, and the way they communicate. It also allows them to look beyond the horizon and think without bias. All of this combines and creates valuable information and ideas for the corporation to help it thrive in various locations. Just like this, having an interest in books will always be an advantage to anyone as they provide knowledge and knowledge will always bring with it power.

The four general accounting principles include: (Check all that apply).

Answers

Answer:

The four accounting principles are:

Expense recognition: this principle establishes that expenses are recognized when their associated revenue is realized. For example, if I buy inventory in May, and sell it in June, I will recognize the inventory expense in June, not in May.Measurement: this principle establishes that businesses should only record transactions when these transactions can be expressed in terms of money.Revenue recognition: this principle establishes that revenues are accounted for when they are realized, not necessarily when they are paid for. For example, if I sell merchandise in June on credit, and the credit is due in July, I will recognize the revenue in June, not in July.Full disclosure: this principle establishes that public companies (those that sell and buy their stock in the public market) should disclose all relevant financial information to the stockholders (the authorities, investors, credit rating agencies, auditing agencies).

Generally accepted accounting principles, or GAAP, are standards that encompass the details, complexities, and legalities of business and corporate accounting.

The four general accounting principles are:

1) Expense Recognition:

This principle shows that costs are recognized when the relevant revenue is realized.   For example, if you buy inventory in May and sell it in June, record the inventory cost in June instead of May.

2) Measurement:

This principle states that a company only needs to record a transaction if it can be expressed in money.

3) Revenue Recognition:

This policy states that revenue is recognized when it is recognized and not necessarily when it is paid. For example, if you sell an item with credits in June and the credit expires in July, record the sale in June instead of July.

4) Full Disclosure:

This principle requires public companies (those who buy and sell shares in the open market) to disclose all relevant financial information to shareholders (authorities, investors,  rating agencies, accounting firms).

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