O 1,773,408 1,884,916 1,138,816 O 1,829,152
Q: O P4,965 O P2,664 O P4,664 O P2,465
A: In this we have to find out future value FACTOR and find out periodic payment.
Q: Direct 24,642.07 $1,647,203,780.25 $1,924,086,640.32 $3,479,937,664- Indirect 5,457.38…
A: The present value of labor income and value added would be the equivalent cash flow considering the…
Q: $27,831.47 $29,851.84 E S29,083.89 $30,729.84
A: The concept of the time value of money states that the current worth of money is more than its value…
Q: $5,000 ÷ (1 + 0.0875) =is not $5,438 $5,000 x (1 + 0.0875) =is $5,438
A: Present Value of Annuity: It is estimated by discounting the annuity payments by an appropriate…
Q: $175,500
A: Activity-based costing is a costing method where the indirect cost is assigned to the jobs or…
Q: $28,437 $26,908 $29,216 $25,099 $27,411
A: Money growth is due to compounding of interest rates and significant in long term.
Q: 600,000 10 60,000 80 108,800 105,000 64,800 67,650
A: Service cost refers to the cost that is set aside through employer for meeting up the pension…
Q: $23,160. $40,560. $58,950. $72,432.
A: Statement Showing Calculation Of Equivalent annual net present value(EANPV): Particulars Machine…
Q: Od. 115,400
A: Variance refers to the measurement of volatility. It should be calculated by taking the average of…
Q: O P 6,999.39
A: Compound interest is used in case of lump-sum money accumulates in the future if interest is charged…
Q: O A. $10,135.48 O B. S10,461.75 O C. $10,578.92 O D. $10,556.23 O E. S10,337.46
A: investment =10000 Rate of return =11% Expenses =5.75+1.25=7%
Q: 97,004 54,803
A: 97004 minus 54803
Q: 2011 7,721,279 13,042,165 32,236,021 172,278 %24 %24
A: The analysis is given as,
Q: 366,939 323,664 41,546 55,671 231,261 202.930 135,678 120,734 106,150 103.013 29,527 17,720
A: The answer has been mentioned below.
Q: 433,895 ), 2022 3,000.00 3,002.00 2,808.00 2,818.00 2,870.19 290,250 P, 2022 3,080.00 3,132.00…
A: Prices of stock moves up and down according to the demand in the stock markets. Trends can be…
Q: $4,775.68
A: The after tax income of an individual is calculated by deducting the paid taxes from the income for…
Q: $ 2,645,000 1,162,000 1,770,000 4,712,500 1,089,200 1,255,000 8,976,000 677,000 1,662,000 1,389,500…
A: Notes: Manufacturing overhead includes the indirect expenses which are related to the manufacturing…
Q: P 205,000 67,900 36.500
A: It is given that the information of Brother Paul's Burger House.
Q: O $53,034
A: The average retail inventory is calculated by taking the sum of all the inventory at the beginning…
Q: 480,000 492.000 504,300 516,907.5 2022 2023 2024 i=2.2% 417.200 424,630 432,245.7 440,051.8
A: Rate = 2.2% or 0.022 NPV = Gross Sales - Direct Cost of respective years PVF at 2.2% for 1 year =…
Q: ᴅᴀᴛᴀ ꜰᴏʀ ᴛᴡᴏ 50-ʜᴘ ᴍᴏᴛᴏʀꜱ ᴀʀᴇ ᴀꜱ ꜰᴏʟʟᴏᴡꜱ: ᴍᴏᴛᴏʀ ᴀ…
A: Answer - STEP 1 - Calculation of Annual Cost of Alpha Motor - i. Depreciation Cost = P 37500…
Q: Multiple Cholce $415,000. $56,814. $204,636. $210,364. $153,550.
A: Solution.. Fixed cost = $153,550 Contribution margin ratio = 37% Break even sales revenue = ?
Q: ple Choice $56,625. $64,110. $56.110. $28,800
A: In this we have to calculate the present value of future value.
Q: O A. $69,000 O B. $80,000 O C. $65,000 $111.000
A: Always there would be priority that project with maximum NPV will be selected only and sum of all…
Q: C. $5,831 O d. $4,540.05
A: The worth of money changes with time, therefore the TVM considers the value of money according to…
Q: Corp. $742,000 $742,000 371,000 225,250 371,000 516,750 238,500 384,250
A: Degree of Operating leverage calculates the company degree of operating risk . It measures the…
Q: Multiple Choice $280,200 $305,200 $315,200 $214,000
A: The acquisition means when a company purchases most of the stake of another company to gain control…
Q: 351,009 ,607,837
A: The notion of present value asserts that a sum of money today is worth more than a sum of money in…
Q: 96,000 98,400 100,8 384,000 393,600 403,4- 1,200,000 1,080,000 960,0 86,000 88,150 90,35
A: 1. Computation of Operating Profit -
Q: c. $4,775.
A: Income tax refers to the tax which is directly imposed by the government on the earnings of the…
Q: 1,356.95 2,618.83 5,237.66
A: The yearly cost of acquiring, running, and sustaining an project beyond its entire life is known as…
Q: $7,709
A: Annual cost of operating car over a period of 6 years using the concept of present value of cash…
Q: ᴀ ᴍᴀɴᴜꜰᴀᴄᴛᴜʀᴇʀ ᴘʀᴏᴅᴜᴄᴇꜱ ᴄᴇʀᴛᴀɪɴ ɪᴛᴇᴍꜱ ᴀᴛ ᴀ ʟᴀʙᴏʀ ᴄᴏꜱᴛ ᴏꜰ ᴘʜᴘ 55 ᴇᴀᴄʜ, ᴛʜᴇ ᴍᴀᴛᴇʀɪᴀʟ ᴄᴏꜱᴛ ᴏꜰ ᴘʜᴘ 82…
A: Net Income = Sales - (Direct Material Cost + Direct Labor Cost + Other Variable Cost + Fixed…
Q: 25% 14,850 3,900 0(2,677,437.00) (2,677,437.00) 569,400.00 569,400.00 569,400.00 569,400.00…
A: Given information : Year Revenue Cost 0 0 -2677437 1 772,200 -202800 2 772,200 -202800 3…
Q: = $17,055
A: Ans. Net Profit Margin = Net income/Sales
Q: A=$32982 p=27,200 r=5.93% t=?
A: The time value of money (TVM): Money available at present time has more value than the money in the…
Q: E9.7(a,b2)
A: This Numerical has covered the concept of Depreciation Accounting. There are many methods of…
Q: 1 $ 652,500 299,000 353,500 181, 150 (19,125) 153, 225 43,850 $ 109,375
A: Cash Flow Statement : It is the statement of cash inflows and outflows from the three cash generated…
Q: O $1,017.55
A: Annual premium refers to the amount that is paid as a premium annually called an annualized…
Q: Department 1 P486,000 27,000 4,200 3.
A: Overhead Applied: It is a direct overhead expense that gets recorded in cost accounting, it is a…
Q: 1. 271,687.3
A: Ordinary due starts at the beginning of the period while ordinary annuity starts at the end of the…
Q: O O $26,833.33 $28,000.00
A: Depreciation: It is the reduction in the value of fixed assets except land due to its continue use…
Q: O Between $184,561 and $184,699
A: Net present value refers to the amount used for the calculation of the current total value of the…
Q: O a. 1.3278 O b. 38.8212 c. 10.2423 O d. 29.2383 O e. 3.7903
A: In this we need to calculate future value factor.
Q: O $853,623 O $896,325 O$1.128,600
A: All sorts of future cash flows in respect of adding interest on present value are known as the…
Q: ,215 130,573 124,394 00,075 776,002 725,121 16,585 12,668 "0,822 207,776 194,203 178,957 161,594…
A: Net Sales is operating income, which generated from the primary source of revenue. Hence, the…
Q: $23,500 $4 500
A: Formula for cash conversion cycle: Days inventory outstanding + Day sales outstanding - Day payable…
Q: 1 x 8 5,500 40,100 10,175 P 49.490 1.85 Required: Assume that management adopts the ABC plan,…
A: ABC Analysis It is important for the valuation of inventory which are used for the entity as…
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- Determining Type of Lease and Subsequent Accounting On January 1, 2019, Ballieu Company leases specialty equipment with an economic life of 8 years to Anderson Company. The lease contains the following terms and provisions: The lease is noncancelable and has a term of 8 years. The annual rentals arc 35,000, payable at the beginning of each year. The interest rate implicit in the lease is 14%. Anderson agrees to pay all executory costs directly to a third party and is given an option to buy the equipment for 1 at the end of the lease term, December 31, 2026. The cost of the equipment to the lessee is 150,000, and the fair value is approximately 185,100. Ballieu incurs no material initial direct costs. It is probable that Ballieu will collect the lease payments. Ballieu estimates that the fair value is expected to be significantly greater than 1 at the end of the lease term. Ballieu calculates that the present value on January 1, 2019, of 8 annual payments in advance of 35,000 discounted at 14% is 185,090.68 (the 1 purchase option is ignored as immaterial). Required: 1. Next Level Identify the classification of the lease transaction from Ballices point of view. Give the reasons for your classification. 2. Prepare all the journal entries tor Ballieu for the years 2019 and 2020. 3. Discuss the disclosure requirements for the lease transaction in Ballices notes to the financial statements.Determining Type of Lease and Subsequent Accounting On January 1, 2019, Caswell Company signs a 10-year cancelable (at the option of either party) agreement to lease a storage building from Wake Company. The following information pertains to this lease agreement: 1. The agreement requires rental payments of 100,000 at the beginning of each year. 2. The cost and fair value of the building on January 1, 2019, is 2 million. The storage building has not been specialized for Caswell. 3. The building has an estimated economic life of 50 years, with no residual value. Caswell depreciates similar buildings according to the straight-line method. 4. The lease does not contain a renewable option clause. At the termination of the lease, the building reverts to the lessor. 5. Caswells incremental borrowing rate is 14% per year. Wake set the annual rental to ensure a 16% rate of return (the loss in service value anticipated for the term of the lease). Caswell knows the implicit interest rate. 6. Executory costs of 7,000 annually, related to taxes on the property, are paid by Caswell directly to the taxing authority on Dec. 31 of each year. Required: 1. Determine what type of lease this is for the lessee. 2. Prepare appropriate journal entries on the lessees books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2019 and 2020.Use the information in RE20-3. Prepare the journal entries that Richie Company (the lessor) would make in the first year of the lease assuming the lease is classified as a sales-type lease. Assume that the lessee is required to make payments on December 31 each year. Also assume that Richie had purchased the equipment at a cost of 200,000.
- Lessee Accounting Issues Timmer Company signs a lease agreement dated January 1, 2019, that provides for it to lease equipment from Landau Company beginning January 1, 2019. The lease terms, provisions, and related events are as follows: The lease is noncancelable and has a term of 5 years. The annual rentals are 83,222.92, payable at the end of each year, and provide Landau with a 12% annual rate of return on its net investment. Timmer agrees to pay all executory costs directly to a third party on December 1 of each year. In 2019, these were insurance, 3,760; property taxes, 5,440. In 2020: insurance, 3,100; property taxes, 5,330. There is no renewal or bargain purchase option. Timmer estimates that the equipment has a fair value of 300,000, an economic life of 5 years, and a zero residual value. Timmers incremental borrowing rate is 16%, it knows the rate implicit in the lease, and it uses the straightline method to record depreciation on similar equipment. Required: 1. Calculate the amount of the asset and liability of Timmer at the inception of the lease. (Round to the nearest dollar.) 2. Prepare a table summarizing the lease payments and interest expense. 3. Prepare journal entries on the books of Timmer for 2019 and 2020. 4. Next Level Prepare a partial balance sheet in regard to the lease for Timmer for December 31, 2019. Use the present value of next years payment approach to classify the finance lease obligation between current and noncurrent. 5. Next Level Prepare a partial balance sheet in regard to the lease for Timmer for December 31, 2019. Use the change in present value approach to classify the finance lease obligation between current and noncurrent.Lessor Accounting Issues Ramsey Company leases heavy equipment to Terrell Inc. on March 1, 2019, on the following terms: 1. Twenty-four lease rentals of 2,950 at the beginning of each month are to be paid by Terrell, and the lease is noncancelable. 2. The cost of the heavy equipment to Ramsey was 55,000. 3. Ramsey uses an implicit interest rate of 18% per year and will account for this lease as a sales-type lease. Required: Prepare journal entries for Ramsey (the lessor) to record the lease contract on March 1, 2019, the receipt of the first two lease rentals, and any interest income for March and April 2019. (Round your answers to the nearest dollar.)Comprehensive Landlord Company and Tenant Company enter into a noncancelable, direct financing lease on January 1, 2019, for nonspecialized equipment that cost the Landlord 280,000 (useful life is 6 years with no residual value). The fair value of the equipment is 300,000. The interest rate implicit in the lease is 14%. The 6-year lease requires 6 equal annual amounts payable each January 1, beginning with January 1, 2019. Tenant pays all executory costs directly to a third party on December 1 of each year. The equipment reverts to the lessor at the termination of the lease. Assume that there are no initial direct costs. Landlord expects to collect all rental payments. Required: 1. Next Level (a) Show how landlord should compute the annual rental amounts, (b) Discuss how the Tenant Company should compute the present value of the lease payments. What additional information would be required to make this computation? 2. Next Level Prepare a table summarizing the lease and interest receipts that would be suitable for Landlord. Under what conditions would this table be suitable for Tenant? 3. Assuming that the table prepared in Requirement 2 is suitable for both the lessee and the lessor, prepare the journal entries for both firms for the years 2019 and 2020. Use the straight-line depreciation method for the leased equipment. The executory costs paid by the lessee are in 2019: insurance, 700 and property taxes, 800; in 2020: insurance, 600 and property taxes, 750. 4. Next Level Show the items and amounts that would be reported on the comparative 2019 and 2020 income statements and ending balance sheets for both the lessor and the lessee, using the change in present value approach.
- Use the information in RE20-3. Prepare the journal entries that Garvey Company would make in the first year of the lease assuming the lease is classified as a finance lease. However, assume that Garvey is now required to make the 65,949.37 payments on January 1 each year and that the fair value at the lease inception is now 275,000 (65,949:37 4:169865).Lessee Accounting with Payments Made at Beginning of Year Adden Company signs a lease agreement dated January 1, 2019, that provides for it to lease non-specialized heavy equipment from Scott Rental Company beginning January 1, 2019. The lease terms, provisions, and related events are as follows: 1. The lease term is 4 years. The lease is noncancelable and requires annual rental payments of 20,000 to be paid in advance at the beginning of each year. 2. The cost, and also fair value, of the heavy equipment to Scott at the inception of the lease is 68,036.62. The equipment has an estimated life of 4 years and has a zero estimated residual value at the end of this time. 3. Adden agrees to pay all executory costs directly to a third party. 4. The lease contains no renewal or bargain purchase options. 5. Scotts interest rate implicit in the lease is 12%. Adden is aware of this rate, which is equal to its borrowing rate. 6. Adden uses the straight-line method to record depreciation on similar equipment. 7. Executory costs paid at the end of the year by Adden are: Required: 1. Next Level Determine what type of lease this is for Adden. 2. Prepare a table summarizing the lease payments and interest expense for Adden. 3. Prepare journal entries for Adden for the years 2019 and 2020.Lessee Accounting Issues Sax Company signs a lease agreement dated January 1, 2019, that provides for it to lease computers from Appleton Company beginning January 1, 2019. The lease terms, provisions, and related events are as follows: 1. The lease term is 5 years. The lease is noncancelable and requires equal rental payments to be made at the end of each year. The computers are not specialized for Sax. 2. The computers have an estimated life of 5 years, a fair value of 300,000, and a zero estimated residual value. 3. Sax agrees to pay all executory costs directly to a third party. 4. The lease contains no renewal or bargain purchase options. 5. The annual payment is set by Appleton at 83,222.92 to earn a rate of return of 12% on its net investment. Sax is aware of this rate. Saxs incremental borrowing rate is 10%. 6. Sax uses the straight-line method to record depreciation on similar equipment. Required: 1. Next Level Examine and evaluate each capitalization criteria and determine what type of lease this is for Sax. 2. Calculate the amount of the asset and liability of Sax at the inception of the lease (round to the nearest dollar). 3. Prepare a table summarizing the lease payments and interest expense. 4. Prepare journal entries for Sax for the years 2019 and 2020.
- Sales-Type Lease with Unguaranteed Residual Value Lessor Company and Lessee Company enter into a 5-year, noncancelable, sales-type lease on January 1, 2019, for equipment that cost Lessor 375,000 (useful life is 5 years). The fair value of the equipment is 400,000. Lessor expects a 12% return on the cost of the asset over the 5-year period of the lease. The equipment will have an estimated unguaranteed residual value of 20,000 at the end of the fifth year of the lease. The lease provisions require 5 equal annual amounts, payable each January 1, beginning with January 1, 2019. Lessee pays all executory costs directly to a third party. The equipment reverts to the lessor at the termination of the lease. Assume there are no initial direct costs, and the lessor expects to be able to collect all lease payments. Required: 1. Show how Lessor should compute the annual rental amounts. 2. Prepare a table summarizing the lease and interest receipts that would be suitable for Lessor. 3. Prepare a table showing the accretion of the unguaranteed residual asset. 4. Prepare the journal entries for Lessor for the years 2019, 2020, and 2021.Use the information in RE20-3. Prepare the journal entries that Garvey Company would make in the first year of the lease assuming the lease is classified as a finance lease. Assume that Garvey is required to make payments on December 31 each year.On January 1, 2019, Boater Company issues a 20,000 non-interest-bearing, 5-year note for equipment. Neither the fair value of the note nor the equipment is determinable. Boaters incremental borrowing rate is 9%. The asset has a useful life of 7 years. Prepare the journal entry for Boater to record the issuance of the note on January 1.