One of the departments at Yolo Industries has entered into a 9 year lease for a piece of equipment. The annual payment under the lease will be $3,600, with payments being made at the beginning of each year, If the discount rate is 10%, the present value of the lease payments is closest to (ignore income taxes,): Click here to view Exhibit 148-1 and Exhibit 148-2, to determine the appropriate discount factor(s) using the tables provided. (Round your intermediate calculations to 3 decimal places.) Multiple Choice $22,806 $10,07Y $22,105 $32,400
Q: $7,709
A: Annual cost of operating car over a period of 6 years using the concept of present value of cash…
Q: Double entry system.
A: Meaning of double entry system :- Double entry system is based on the fact that every transaction in…
Q: Financial Statements of a Manufacturing Firm The following events took place for Migliozzi Inc.…
A: The income statement tells about the profitability of the business for the current period. The…
Q: The Ste. Marie Division of Pacific Media Corporation just started operations. It purchased…
A: 1. Formula for Residual Income Net Book Value = Net Operating Income - ( Book Value of Assets -…
Q: Sugar Sweet (SS) Company produces and sells 7,000 specialty Treats per year at a selling price of…
A: Revenue is the funds generated from common commerce operations, computed as the average sales price…
Q: Process Costing, Service Organization A local barbershop cuts the hair of 1,200 customers per month.…
A: Process costing seems to be a costing approach commonly used in production wherein units are…
Q: Agency A receives a Notice of Cash Allocation from the DBM of 10,000,000.00 for the second quarter…
A: Journal entry recording is the initial step of accounting cycle process. Under this, atleast one…
Q: a. What is the difference between permanent and temporary accounts? b. Calculate ROA from the…
A: Permanent Accounts : Cash Account, Equipment account, share capital and Retained earnings account…
Q: da MT 1 have ned $L
A: Answer is given below:
Q: 2. Izzy Manufacturing Company has one product line - Product wZ. The business expects its sales…
A: Cost accounting is one of the trending and useful branch of accounting. Under this, various type of…
Q: Matie's Piayground Equipment has current assets of $125,400 and current liabilites of $74,950. Find…
A: Formula: Current ratio = current Assets / current liabilities
Q: April Industries employs a standard costing system in the manufacturing of its sole product, a park…
A: Solution:- A)Calculation of April Industries’ standard price for one unit of material as follows…
Q: E9-5 (Algo) Calculating Direct Materials and Direct Labor Variances (LO 9-3, 9-4) Suds & Cuts is a…
A: The variance is the difference between the actual data and standard output of the production.
Q: Which one of the following is a Section 197 intangible? Oa. A stock investment Ob. An…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Bramble Department Store converted from the conventional retail method to the LIFO retail method on…
A: Cost of goods sold budget- The operating budget includes the cost of goods sold (COGS) budget. The…
Q: Nonunit-level drivers are prominent in activity-based coting systems. Which of the following is…
A: Activity-based costing appears to be a method of more correctly allocating overhead expenditures by…
Q: a Insurance $3020 able Contribution $700 eria Plan $5560 Directions in Popup Window Email with…
A: A charitable contribution is a gift or donation made to a recognised organization with a specific…
Q: Asset and Contra-Asset Accounts Liabilities and Stockholders' Equity Accounts Cash and cash…
A: Cash Flow Statement: A cash flow statement is a financial statement that summaries all of the cash…
Q: On July 1, 2021, Rehearse Company issued $34,000,000 of 20-year, 12% bonds to finance its…
A:
Q: Which of the following is not a requirement to claim an earned income cred Oa. At least $1 of earned…
A: Earned Income Credit is the refundable tax credit available to low and moderate-income earners,…
Q: Plata Company has identified the following overhead activities, costs, and activity drivers for the…
A: Calculation of Total overhead cost Assigned to Model X using Activity Based Costing Overhead Cost…
Q: Smmons Inc. uses the lower of cost on meket method to valesinventory that is accounted or using he…
A: Inventory valuation method includes: First-in, First-Out (FIFO) Last-in, Last-Out (LIFO) Average…
Q: Sales Revenue $5,000 Inventory, January 1, 2015 $1,600 Purchases $1,200 Interest Revenue $250 Loss…
A: Single-step income statement A single-step income statement summarises a company's revenue and…
Q: Ajam Inc. shows the following selected adjusted account balances at March 31, 2019: $ 58,000…
A: Ajam Inc. Balance Sheet March'31, 2019 Liabilities Current Liabilities: Accounts…
Q: Required: i. Using present-value method, determine the best alternative ii. Using the internal rate…
A: By using present value method , debt alternative carrying interest of 10% is the best alternative…
Q: Jason and Kidd are partners who share profits and losses in the ratio of 3:1, respectively. On…
A: It is a form of business in which two or more people agree to share profit and loss in agreed ratio…
Q: Cost of Goods Sold Gross Operating Expenses Net Sales Net Profit ($) Margin ($) $336,500 $132,200 $…
A: Formula: Gross margin = Net sales - Cost of goods sold
Q: Calculate using the gross profit method for the following: Gross profit on sales: 47% Beginning…
A: Given, Gross profit on sales = 47% Net sales at retail = $14,400 Gross profit = Net sales*Gross…
Q: State whether the following statements are true or false and justify your answer in each case: a)…
A: Here discuss about the details of the rights of the investor who made investment in the investee…
Q: Pheonix earns $19.45 per hour and this week works 42 hours. She is paid weekly. Her company follows…
A: Total earnings of Pheonix in this week=42 hours*$19.45 per hour=$816.90 Employer's employment…
Q: Question 9: The Internal Re venue Senvico levies a small senvice fee for emplovers wbo utilize the…
A: The Internal Revenue Service is the taxation authority in the USA. It takes…
Q: Average Rate of Return Clancy Company is considering the purchase of equipment for $120,000. The…
A: The question is related to Capital Budgeting. The Average rate of return Accounting/Average Rate Of…
Q: During the month of April, LTP Company incurred $30,000 of manufacturing overhead, $40,000 of direct…
A: Raw materials used = Raw material purchases + Decrease in raw materials inventory Total…
Q: March 3 Distributed a 10% stock dividend on the 98,000 common shares outstanding. The market price…
A:
Q: Sales $ 400,e00 Variable expenses 260,eee Contribution margin Fixed expenses 140, eee 40,000 Net…
A: The residual income is the income being received even after the completion of the income producing…
Q: Caribbean Kayaks (CK) Maritza (which means "star of the sea") Joseph is preparing the 2022 budget…
A: Production Budget Particulars Quarter 1…
Q: Now suppose that the firm plans instead to increase long-term debt only to $1,100 and does not wish…
A: Every journal entry in account has 2 effect on financial statement.One is debit and another is…
Q: Learning Task 4: Collaboration and Communications (Written Task) Direction: If this is a company…
A: Classification of type of account Basis Code Account type Statement of Financial Position /…
Q: State whether the following statements are true or false and justify your answer in each case: a)…
A: a) True As per IFRS 10, Control requires power over the investee. rights to variable returns…
Q: Describe the basic nature of the three expense recognition methods. Provide two examples of each.
A: Expense recognition is a principle according to which expenses should be recognised in the same…
Q: As a newly hired IRS trainee, you have been asked to calculate the amount of tax refund or tax owed…
A: Introduction:- The following basic information as follows under:- Tax liability =$5,798Tax credit…
Q: Coraline Co. has the following cost and activity data. Month Units Total Cost September 80,000…
A: The High-low method of determining cost variance considers the highest and lowest cost being…
Q: Determine how much the job would cost given the following activities: Do not round intermediate…
A:
Q: Matie's Plavground Equipment has current assets of $125,400 and current liabilites of $74,950. Find…
A: Current ratio = Current Assets/Current Liability = $125,400/$74,950 = 1.67:1
Q: Exercise 10-3 (Algo) Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $405.405 for…
A: The lump sum purchase price of plant assets can be apportioned to various assets on the basis of…
Q: Requirements 1. Compute the overhead variances for the year: variable overhead cost variance,…
A: Solution:- Given, Quality Fender uses a standard cost system No. of fenders produced = 20,000…
Q: Account Title Debit Credit 20,000 13,000 Cash Equipment Accumul.Dep-Equipment Supplies Prepaid Rent…
A: The post closing trial balance is prepared to record the final balance of each permanent account of…
Q: Which of the following amounts paid by an employer to an employee is not subject to withholding? Oa.…
A: Given : Multiple options a) Salary b) Travel expense reimbursements from an accountable plan c)…
Q: Sebastian purchases two pieces of equipment for $100,000. Appraisals of the equipment indicate that…
A: Equipment is the resource owned by an entity which can be used for the purpose of doing usual…
Step by step
Solved in 2 steps
- Domebo Corporation has entered into a 8 year lease for a piece of equipment. The annual payment under the lease will be $3,200, with payments being made at the beginning of each year. If the discount rate is 14%, the present value of the lease payments is closest to (Ignore income taxes.): Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. (Round your intermediate calculations to 3 decimal places.)Suddeth Corporation has entered into a 6 year lease for a building it will use as a warehouse. The annual payment under the lease will be $2,468. The first payment will be at the end of the current year and all subsequent payments will be made at year-ends. If the discount rate is 5%, the present value of the lease payments is closest to (Ignore income taxes.): Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. Multiple Choice O O $14,808 $11,050 $14,103 $12,528You have been assigned the task of analyzing whether to purchase or lease some transportation equipment for your company. The analysis period is six years, and the base year is year zero (b = 0). Other pertinent information is given in the shown Table also. Solve,, a. The contract terms for the lease specify a cost of $300,000 in the first year and $200,000 annually in years two through six (the contract, i.e., these rates, does not cover the annual expense items). b. The after-tax MARR (not including inflation) is 13.208 % per year (ir). c. The general inflation rate (f ) is 6%. d. The effective income tax rate (t) is 34%. e. Assume the equipment is in the MACRS (GDS)five-year property class. Which alternative is preferred? (Use an after-tax, actual dollar analysis and the FW criterion.)
- The lowa DMV leases a building for 20 years. The lease requires 20 annual payments of $12,000 each, with the first payment due immediately. The interest rate in the lease is 11%. What is the present value of the cost of leasing the building? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 2 decimal places, e.g. 52.75.) Click here to view the factor table. Present value 2$An owner of the Atrium Tower Office Building is currently negotiating a five-year lease with ACME Consolidated Corporation for 20,000 rentable square feet of office space. ACME would like a base rent of $15 per square foot with step-ups of $1 per year beginning one year from now. ATRIUM would provide ACME a $53,000 moving allowance and $130,000 in tenant improvements (TIs). What is the effective rent (per SF) assuming a discount rate of 10%?Benning Manufacturing Company is negotiating with a customer for the lease of a large machine manufactured by Benning. The machine has a cash price of $800,000. Benning wants to be reimbursed for financing the machine at an 8% annual interest rate. Required: 1. Determine the required lease payment if the lease agreement calls for 10 equal annual payments beginning immediately. 2. Determine the required lease payment if the first of 10 annual payments will be made one year from the date of the agreement. 3. Determine the required lease payment if the first of 10 annual payments will be made immediately and Benning will be able to sell the machine to another customer for $50,000 at the end of the 10-year lease.
- Bravo Manufacturing Company is negotiating with a customer for the lease of a large machine manufactured by Bravo. The machine has a cash price of $800,000. Bravo wants to be reimbursed for financing the machine at an 8% annual interest rate. Required: Determine the required lease payment if the lease agreement calls for 10 equal annual payments beginning immediately. Determine the required lease payment if the first of 10 annual payments will be made one year from the date of the agreement. Determine the required lease payment if the first of 10 annual payments will be made immediately and Bravo will be able to sell the machine to another customer for $50,000 at the end of the 10-year lease.The following separate scenarios relate to a 5-year lease, pertaining to equipment with a fair value of $25,000. Assume in all scenarios that payments are made at the beginning of the period. 1. Lease payments include a fixed payment of $5,000 per year. 2. Lease payments include a fixed payment of $5,000 per year, plus $250 for insurance and $300 for a maintenance contract. 3. Lease payments will be $5,000 in the first year and will increase by 3% (calculated on the previous year's payment) for each of the following 4 years. 4. Lease payments will be $5,000 in the first year and will increase each of the following years by the increase in the CPI from the preceding year. The current CPI is 120 and is expected to increase to 122 at the end of the next year. 5. Lease payments will be $5,000 in the first year and will increase each of the following years by (a) the increase in the CPI from the preceding year, or (b) 3%, whichever is greater. The current CPI is 120 and is expected to…A) Compute the present value of operating lease obligations using an 8% discount rate for JarirInc. and Extra Inc. as of January 31, 2009. Assume that all cash flows occur at the end of each year. Also assume that the minimum lease payment each year after 2013 equals $360 million per year for three years for Jarir Inc. and $333.5 million for four years for Extra Inc.. (This payment scheduling assumption can be obtained by assuming that the payment amount for 2013 continues until the aggregate payments after 2013 have been made, rounding the number of years upward, and then assuming level payments for that number of years. For Jarir Inc.: $1,080/$386 = 2.8 years. Rounding up to three years creates a three-year annuity of $1,080/3 years = $360 million per year. B) Compute each of the following ratios for Jarir, Inc. and Extra Inc. as of January 31, 2009, using the amounts originally reported in their balance sheets for the year.(1) Liabilities to Assets Ratio = Total Liabilities/Total…
- Northwest Bank has been asked to purchase and lease to Fafner Construction equipment that costs $1,500,000. The lease will run for eight years. If Northwest seeks a minimum return of 10 percent, what will be the required lease payment? Assume there is no residual value. Use Appendix D to answer the question. Round your answer to the nearest cent. $Bird Wing Bedding can lease an asset for 4 years with payments of $24,000 due at the beginning of the year. The firm can borrow at a 9% rate and pays a 25% federal-plus-state tax rate. The lease qualifies as a tax-oriented lease. What is the cost of leasing? Do not round intermediate calculations. Round your answer to the nearest dollar.The Harris Company is the lessee on a four-year lease with the following payments at the end of each year: Year 1: $ 11,500 Year 2: $ 16,500 Year 3: $ 21,500 Year 4: $ 26,500 An appropriate discount rate is 7 percentage, yielding a present value of $62,927. a-5. If the lease is an operating lease, what will be the amortization expense shown on the income statement at the end of year 1? (Leave no cells blank – be certain to enter “0” wherever required.) b-1. If the lease is a finance lease, what will be the initial value of the right-of-use asset? b-2. If the lease is a finance lease, what will be the initial value of the lease liability? b-3. If the lease is a finance lease, what will be the lease expense shown on the income statement at the end of year 1? (Leave no cells blank – be certain to enter “0” wherever required.) b-4. If the lease is a finance lease, what will be the interest expense shown on the income statement at the end of year 1?…