17
sked out of
Botanic Choice signs an agreement on January 1, 2019, to lease equipment to Famous Furniture. The
following information relates to this agreement.
. The term of the non-cancelable lease is 4 years with no renewal option. The equipment has an estimated
economic life of 6 years.
• The fair value of the equipment on January 1, 2019, is € 40,000.
• The asset will revert to the lessor at the end of the lease the term, at which time the asset is expected to
have a residual value of £6,000, none of which is guaranteed.
• The agreement requires equal annual rental payments of € 9,538.39 to the lessor, beginning on
December 31, 2019.
• The lessee's implicit rate is 8 %. Present value of an ordinary annuity of $1 for number of periods = 4,
interest 8% equals 3.31213.
What is the balance of lease liability (noncurrent) on December 31, 2019?
Select one:
a. €31.592.39
b. €17,009.51
€24.581.39
d. 22053.99

Answers

Answer 1

The balance of lease liability on December 31, 2019, is equal to €31,592.39.

Option A is the correct answer.

What is a lease?

A lease is a contract where the owner of the asset permits the other party to utilize the asset for a specified period of time. The owner receives some consideration for that use.

Given values:

Yearly rental payment:  € 9,538.39

PV annuity factor of 8% at 4 years: 3.31213

Computation of lease liability balance:

[tex]\rm\ Balance \rm\ of \rm\ Lease \rm\ Liability= \rm\ Yearly \rm\ Rentals \times\ \rm\ PV \rm\ Annuity \rm\ factor\\\rm\ Balance \rm\ of \rm\ Lease \rm\ Liability=\ 9,538.39 \times\ 3.31213\\\rm\ Balance \rm\ of \rm\ Lease \rm\ Liability=31,592.39[/tex]

Therefore, on December 31, 2019, the amount of lease liability comes our to be € 31,592.39.

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Related Questions

Essays question
Indicate what you found useful and what you disagreed with and had questions about soft skills and body language in two paragraphs each.

Provide two paragraphs each of a situation you personally experienced in which you:

a) found someone's communication to be particularly effective and powerful and b) found someone's communication to be particularly poor, counter-productive, and ineffective.

Provide the context of the situation and what happened as a result of the communication. This could be your own communication or it could be that of someone you personally witnessed

Answers

I personally found someone's communication to be particularly effective and powerful as they made me understand the missing piece or idea for my business.

What is the communication about?

I personally found someone's communication to be particularly poor, counter-productive, and ineffective when I encountered a person who is in support of domestic violence and see no fault in it as he was not willing to even listen to others opinion.

Communication is known to be a 2 way process where there is a sender and a receiver and it is not complete until both understand it.

Therefore,   I  have personally found someone's communication to be particularly effective and powerful as they made me understand the missing piece or idea for my business.

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what is the market and sales strategy of vending machine

Answers

Answer:

The sales strategy of a vending machine is the four p's and those four p's are Product, Price, Place, and Promotion

Explanation:

hope this help pls give brainiest

Suppose you want to borrow money from banks. You are considering
two loans. The terms of them are equivalent with the exception of the interest
rates. Loan A offers a rate of 7.75 percent, compounded daily. Loan B offers a
rate of 8 percent, compounded semi-annually. Which loan should you select and
why?

Answers

The loan I would select is loan A. This is because it has a lower effective annual rate.

Which loan would I select?

The loan I would select would be the cheaper one.  In order to determine the cheaper loan, I would calculate the effective annual rate. The effective annual rate is the actual interest rate that is paid on a loan.

Effective annual rate = (1 + APR / m ) ^m - 1

Where: M = number of compounding

Loan A = ( 1 + 0.0775/365)^365 - 1 = 8.06%

Loan B = (1 + 0.08/2)^2 - 1 = 8.16%

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Deciding the best ways for customers to locate, get, and use the products and services of a business is called _____.

A. financing

B. marketing-information management

C. product/service management

D. distribution

Answers

Answer:

D. distribution

......

The following examples are defined as what kind of property: canals, ponds, machinery, and buildings

Answers

Answer:

And the question is? ...............

Dorian has started a cultural shift at his organisation in quality process. Which type of reaction will he most likely face in the early stages ?

Answers

The type of reaction will he most likely face in the early stages is rigid and reactive.

What is Organization?

Organization refers to the group of people working together in order to achieve the organizational goals. The goal of every organization is to maximize the profits for which it takes various activities.

In the above scenario, Dorian has started a cultural organization in a quality process. The changes made in any of the organization are rigid at first place.

The employees of the Dorian organization will react to the changes made regarding culture of the organization. Later on everyone will be adaptive to the changes.

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Johnny used his grandmother's credit card to buy a new set of headphones
without her permission. What act has he committed?
O A. Commerce
O B. Fraud
O C. Sales liability
O D. Liability

Answers

Answer:

fraud

Explanation:

fraud - because fraud is when something is purchased or used in an illicit manner without the consent of the cardholder (in this case) therefore resulting in a fraud/financial crime.

commerce - when one is buying /selling something usually of great worth. this is a very legal term.

sales liability - is when a retailer takes taxes from someone (sales tax) and has yet to give such to the state/county.

liability - is when someone owes (usually a large deal of money) such as some form of debt. (mortgage, bank, etc)

therefore the only one to fit this scenario is fraud.

hope this helps:)

Answer:

Eliminate commerce, A, because commerce is the act of buying things.

Eliminate C and D, because they have nothing to do with taking something without permission.

So this leaves only option B, fraud.

What is fraud?

Fraud is the act of one individual scamming or stealing from another individual under their name or using fake identities to commit theft and gain benefit from this action. Fraud is a crime.

Hope it helps, have a great day!

Your 75-year-old grandmother expects to live for another 15 years. She currently has $1,000,000 of savings, which is invested to earn a guaranteed 5% rate of return. If inflation averages 2% per year, how much can she withdraw (to the nearest dollar) at the beginning of each year and keep the withdrawals constant in real terms, i.e., growing at the same rate as inflation and thus enabling her to maintain a constant standard of living?

Answers

Based on your grandmother's savings, her rate of return, and inflation, the amount she can withdraw at the beginning of each year is $81,027.

What is annuity?

An annuity is a financial product that pays out a fixed stream of payments to an individual, primarily used as an income stream for retirees.

The grandmother can withdraw at the beginning of each year

First, find the inflation adjusted return,

1 + Adjusted return = (1 + nominal return) / (1 + inflation rate)

1 + Adjusted return = 1.05 / 1.023

Adjusted return = 2.94%

Using the PMT function on the spreadsheet, the amount to be withdrawn can be found:

Rate = 2.9%

Nper = 15 years

PV = - 1,000,000

Type = 1 (Withdrawal at year beginning)

Amount will be found as $81,027.

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Calculate the 2 year annuity factor if the required rate of return is 10%.

Answers

If the required rate of return is 10%, then the 2-year annuity factor can be calculated as 1.7355.

What is the 2-year annuity factor?

The 2-year present value annuity factor can be found by using the formula for the present value of an annuity.

This is:

= Amount x ( 1 - (1 + rate) ^ - number of periods ) / rate

Replace the amount with 1 when calculating for factor:

= 1 x ( 1 - (1 + 10%)⁻²) / 10%

= 1 x 0.173553719 / 10%

= 1.7355

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a company sold a machine for 15,000$ in cash. The machine originally cost $38,000 and accumulated depreciation was 20,000

Answers

Based on the original cost of the machine and the accumulated depreciation, the gain on the machine is -$3,000.

What is the gain on the machine?

First find the netbook value of the machine:

= Cost of machine - accumulated depreciation

= 38,000 - 20,000

= $18,000

The gain or loss is:

= Selling price - Net book value

= 15,000 - 18,000

= -$3,000

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A Notary Signing Agent with nearly 10 years experience has reviewed and is completely familiar with all the documents in a loan package. When meeting with the borrower, the Notary Signing Agent may now:

Answers

Ask the name and purpose of the Loan documents as A Notary Signing Agent with nearly 10 years experience has reviewed and is completely familiar with all the documents in a loan package.

What is a loan package?

Loan package is the documentation and the business plan that provides loan or money on installation to the lender to review to analyze whether the loan has been approved or not. It takes a lot of rime in approving a loan as bank has to see the backgrounds and other information.

Thus, Ask the name and purpose of the Loan documents

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WHAT TYPES OF CAREERS WORK WITH B2B MARKETINGSTRATEGIES?​

Answers


Also: There are several methods a business can use when it wants to focus on B2B marketing. Some of these methods include: Blogging Email Referral Search engine optimization (SEO) Social Media Trade shows or conventions Blogging To use blogging in your B2B marketing strategy, you will want to pay close attention to the language you use.

it takes 1 hour to travel from new york to Washington dc by air and 4 hours by train The airfare is 200 and the train fare is 85
If a traveler wishes to minimize the total cost of making this trip, which mode of transportation should be selected if the traveler’s opportunity cost of time spent in transit is $15 per hour?

Answers

If a traveler wishes to minimize the total cost of making this trip is $85 train travel that will at minimum cost.

What is opportunity cost?

The potential profit lost from a missed chance is referred to as the “opportunity cost” and is the result of selecting one option over another.

Additional hours = 4 – 1 = 3 hours

Additional cost = 3×10 = $30

Total cost = 85+30 = $115

Cost of air travel = $200

Savings due to train travel = 200 – 115

= $85

Therefore, $85 is the correct answer.

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which is a short term low risk investment with low liquidity

Answers

A mutual fund investment is an example of a short term low risk investment with low liquidity

What is a mutual fund?

This is a money market investment that has low risk, low return and low liquidity which can be done for say one year or more according to the investor's choice.

Hence, he mutual fund investment is an example of a short term low risk investment with low liquidity.

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What is State Farm's Promise of Customer Satisfaction on recycled sheet metal?
For as long as you own your vehicle.

O One year

O For at least as long as the OEM would have warranted its new replacement part.

O For at least one year or the duration of the existing manufacturer's warranty.
O Limited lifetime warranty.

Answers

The State Farm's Promise of Customer Satisfaction on recycled sheet metal is for at least as long as the OEM would have warranted its new replacement part. Thus 2nd option is correct.

What is Customer satisfaction?

Customer Satisfaction refers to the fulfillment of the needs and the desire of the customer by making the product as per there requirement. It is the measurement of the how much the customer is satisfied with the product.

In the above case, the State Farm provides the services to the customer by selling the metal sheets. They had promised the customer for providing the original equipment manufactured to be replaced with the new till the life span of the metal sheets.

Thus the correct option is 2nd.

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Production is efficient if the economy is producing at a point
Oon the production possibilities frontier.
O outside the production possibilities frontier.
Oon or inside the production possibilities frontier.
O inside the production possibilities frontier.

Answers

Production is efficient when the economy is producing at a point on the production possibilities frontier. Hence, Option 1. is the correct statement.

What is the production possibilities frontier?

A production possibilities frontier, or PPF, defines the set of feasible mixtures of products and offerings a society can produce given the sources available. Choices outside the PPF are unattainable and alternatives within the PPF are inefficient.

Therefore, Production is efficient when the economy is producing at a point on the production possibilities frontier. Option 1. is the correct statement.

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You are considering a 3/5 ARM. What does the 5 represent?
O A. The total number of years in the loan
• B. The number of years between adjustments in the interest rate
• C. The interest rate of the initial fixed-rate loan period

D. The number of years that a fixed interest rate will be
loan
applied to the
SURMI

Answers

The 5 represent: B. The number of years between adjustments in the interest rate.

What 5 represent in 3/5 ARM?

5 represent  the number of years before mortgage interest rate will be adjusted.

A 3/5 ARM means that the loan will have interest rate that is fixed   after that the loan will be adjusted.

Therefore the correct option is B.

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Briefly define or give an example of the Measurement or Cost Principle

Answers

The cost principle is an accounting principle that records assets at their respective cash amounts at the time the asset was purchased or acquired. The amount of the asset that is recorded may not be increased for improvements in market value or inflation, nor can it be updated to reflect any depreciation.

Choose the letter of the item that best completes
the statement or answers the question.
1. The main idea of this chapter is that (a) cities are not as nice to live
in as suburbs (b) the problems of cities cannot be solved
(c) cities face difficult problems (d) life in the suburbs is boring.
2.
Three out of every four Americans live in (a) rural areas
(b) metropolitan areas (c) cities (d) suburbs.
3.
The Atlanta Metropolitan Area consists of suburbs and a (a) mega-
lopolis (b) central city (c) region (d) state.
4. The Northeast Corridor is an example of (a) a megalopolis (b) a
central city (c) an interstate highway (d) a suburb.
5. Which statement is true of suburban areas today? (a) Suburban
residents depend upon the city for jobs, entertainment, and essen-
tial services. (b) Median family income is lower in the suburbs than
in cities. (c) More people are employed in manufacturing in the
suburbs than in the cities. (d) Minorities and the elderly tend to be
concentrated in the suburbs.
6. Which one of the following is an attempt to solve the problems of
the cities? (a) urban renewal (b) flight of businesses and the mid-
dle class to the suburbs (c) deterioration of city streets and public
buildings (d) increase in homelessness.
7. The decline of manufacturing industries and the increase in service
jobs in the cities have resulted in (a) fewer traffic problems in the
city (b) higher incomes for city workers (c) greater opportunities
for high school dropouts (d) a widening of the gap between rich and
poor in the cities.
8. Which one of the following is an argument in favor of urban re-
newal projects? (a) Rentals in renewal areas are very high. (b) Poor
people will be displaced and crowded into slums. (c) Businesses will
stay and the middle class will be brought back into the city.
(d) More city services will be required in renewed areas.
9. Which one of the following is an argument in favor of increased fed-
eral aid to cities? (a) Federal spending has not reduced the number
of high school dropouts. (b) The same urban problems often occur
in many areas of the nation. (c) The people in city and state govern-
ments have better understanding of problems than the people in
the federal government. (d) The federal government is already too
deeply in debt.
10. Which one of the following supports the view that local problems
do not begin or end in the local area? (a) Unemployment in the
cities increases when the national economy is doing poorly. (b) Federal aid to cities is not a new idea. (c) The federal government has the money, but the cities do not. (d) Urban renewal projects have always been successful.

Answers

The answers are:

Option COption bOption bOption AOption AOption AOption DOption COption bOption A

Atlanta Metropolitan Area

This is known to be the Region that are found in Georgia. It is known as Metro Atlanta, that was created by the United States Office of Management and Budget.

Note that Three out of every four Americans live in metropolitan areas and The Atlanta Metropolitan Area consists of suburbs and a  megalopolis.

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CAAT Traders acquired machinery on 1 July 20.18 for an amount of R175 300. This machinery was only available for use from 1 September 20.18 due to massive tests that needed to be performed first. CAAT Traders’ current financial period ends on 31 May 20.19. According to CAAT Traders’ accounting policy, depreciation on machinery is provided using the unit of production method over it’s the useful life of 5 years according to the following production schedule:
The amount for depreciation expenses to be shown in the statement of profit or loss and other comprehensive income for the year ended 31 May 20.19 will be … (round off your final answer to the nearest Rand)

Answers

The depreciation expenses to be shown in the statement of profit or loss and other comprehensive income for the year ended (31-05-2019) is R26,295.

What is depreciation?

Depreciation can be defined as a process in which the monetary (financial) value of an asset decreases or falls over time, especially due to wear and tear.

How to determine the depreciation expenses?

First of all, we would calculate the expected number of units produced by CAAT as follows:

Expected number of units produced = 15,000 + 13,000 + 11,000 + 10,500 + 10,500

Expected number of units produced = 60,000.

Mathematically, the depreciation expenses is given by:

Depreciation expenses = Actual units produced/expected units produced × cost price

Substituting the given parameters into the formula, we have;

Depreciation expenses = 9,000/60,000 × 175,300

Depreciation expenses = R26,295.

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Assuming that the money market, the foreign exchange market, and the secondary market for securities are functioning correctly, there will be economic growth.

True or False

Answers

Answer:

true

Explanation:

The foreign exchange market involves firms, households, and investors who demand and supply currencies

A company has beginning inventory of $20,000, purchases of $15,000, and ending inventory of $2,500. The cost of goods available for sale is ___.

Answers

The cost of goods sold formula is Starting inventory plus purchases minus ending inventory which is equal to the cost of goods sold. In this case, the cost of goods sold is equal to $32,500.

What is Cold of good sold?

The cost of goods sold (COGS) is actually the price of manufacturing the products an agency then sells. In the case of physical goods, it usually consists of the cost of current stock plus any associated substances and direct labor prices incurred over the year.

The cost of goods sold formula is:

Starting inventory + purchases − ending inventory = cost of goods sold.

As per the given information,

beginning inventory -  $20,000

purchases - $15,000

ending inventory - $2,500

[tex]\rm\,Cost \,of\, goods \,sold = \$20,000 + \$15,000 - \$2,500\\\\\rm\,Cost \,of\, goods \,sold = \$32,500[/tex]

hence, the cost of goods sold is equal to $32,500.

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Jim, a convenience store manager is putting together his weekly shift schedule for his employees. He has never asked each employee there shift preference. Each employee can only take one shift and each shift needs only one employee. Below are the shift preferences each employee submitted. Jim has initially assigned Shift A to Julie and Shift C to Oliver. All employees receive a shift of their preference.

Julie- a,b,c,d,f
Larry- b, e, g
Bob- b, d, e, g
Rachel- a, c, g
Oliver- c, e, f
Nate- b, g
Steve- a, c, d, f, g
Who would you assign to shift b?

If Julie is assigned shift b and Steve is assigned shift f, who will be assigned shift c?

Answers

1. Since Jim has initially assigned Shift A to Julie and Shift C to Oliver, Shift B can be assigned to either Larry, Bob, or Nate.

2. If Julie is assigned Shift B and Steve is assigned Shift F, Shift C can be assigned to either Rachel or Oliver.

What is a shift assignment model?

A shift assignment model is a model that schedules tasks based on the availability of personnel at specific times.

A shift assignment model ensures that workers are available to perform certain tasks within each time slot.

Thus, a shift assignment model divides the working day into work shifts for convenience and availability and sometimes takes into account, workers' preferences.

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why should firms manage thier environment

Answers

Answer:

Environmental management can make firms more effective in many ways

Explanation:

Why is it important to establish a theme and message to use across all
promotional activities?
A. Using the same theme and message in each promotional piece
means that your overall campaign will be effective.
OB. Using the same theme and message across all promotional
activities means that you don't have to come up with a
coordinated goal.
OC. By repeating the same basic thrust of your message in each
promotional piece, consumers will identify you with that message.
W
D. By sticking with one theme for all promotional activities, you
ensure that you reach your target audience.

Answers

Answer: C

Explanation:

By repeating the same basic thrust of your message in each

promotional piece, consumers will identify you with that message.

Answer:

C. By repeating the same basic thrust of your message in each

promotional piece, consumers will identify you with that message.

Explanation: It makes the most sense

According to current State Farm guidelines, it's acceptable to specify aftermarket/non-OEM sheet metal
(i.e. hoods, fenders, deck lids) on State Farm estimates
O True
O False

Answers

"According to current State Farm guidelines, it's acceptable to specify aftermarket/non-OEM sheet metal (i.e. hoods, fenders, deck lids) on State Farm estimates" The statement is false. This is further explained below.

What is State Farm guidelines?

Generally, State Farm guidelines is simply defined as  established universal norms for conduct that are consistent with the ethos of these groups.

In conclusion, We have established universal norms for conduct that are consistent with the ethos of these groups.

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The United States has laws meant to stop any one company from dominating
an entire industry. If a company gets to be too large and powerful, it is
possible for the government to force it to break into several smaller
companies.
This situation is an example of which characteristic of the U.S. economy?
A. Limiting the role of government
B. Motivating businesses to maximize profits
C. Promoting competition
D. Prioritizing individual freedom

Answers

I think that it might be D

Answer:

D. Prioritizing individual freedom is the answer.

Explanation:

On July 1, Aloha Co. exercises a call option that requires Aloha to pay $408,000 for its outstanding bonds that have a carrying value of $416,000 and a par value of $400,000. The company exercises the call option after the semiannual interest is paid the day before on June 30. Record the entry to retire the bonds.

Answers

The journal entry for the retirement of bonds will affect a debit to Bonds Payable and Premium on bonds payable accounts for an amount of $400,000 and $12,000 respectively; and a credit in the balances of Cash and Gain on retirement of bonds accounts for a sum of $408,000 and $4,000 respectively.

What is journal entry?

The systematic manner of record-keeping of financial transactions in a business in the chronological order of their occurrence is known as a journal entry. A journal entry has an equal amount of debit and credit effects.

Hence, the significance of a journal entry has been aforementioned.

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Account Balances
Assets = $37,526
Liabilities = $12,845
Equity = $32,500
You write a check for $759 to make a payment
on a loan. What are the new account balances?

Answers

If a person write a check for $759 to make a payment on a loan, then the account balance would be changed as in the balance sheet of the person.

What is account balance?

An Account balance is limited as the amount of monetary system that is hold in a specific account in the bank account or in any another account.

From the given case, if a person make a payment of loan, then the account balance would be:

Assets = $36,767 ($37,526 – $759)

Liabilities = $12,086 ($12,845  -$759)

Equity = $32,500

Therefore, the balance of Equity remains unaffected by the payment of loan.

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4) The saving habits of Ben and Arthur best illustrate which principle of saving?
A) The length of time money is invested matters.
B) The amount of the initial investment is the key.
C) Rate of return matters.
D) Both A and C

Answers

Answer:

D). Both A and C

Both A and C. Habwbwbw wbwbwbebebdndndbsbsbdndndndnsbs
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