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2 years ago

Minnetonka Company leases an asset. Information regarding the lease:

Business

2 answers:

emmainna [20.7K]2 years ago

6 0

Answer:

D) Finance.

Explanation:

In a financial lease, the lessee must include the leased asset in its balance sheet. Even though the title of the leased asset is transferred after the lease term is over, the lessee must consider the leased asset as its own. The lessee even has to depreciate the leased asset in the same way as it treats similar assets owned by the company.

While the lessee depreciates the leased assets, the lessor must amortize them.

wariber [46]2 years ago

4 0

Answer: The options are given below:

A. Short term.

B. Operating.

C. Long

D. Finance.

The correct option is D. Finance.

Explanation: A finance lease is the kind of lease in which a finance company is the legal owner of the asset throughout the duration of the lease, while the lessee has both operating control over the asset, and some share of the economic risks and returns from the change in the valuation of the underlying asset.

In a finance lease agreement, ownership of the property is transferred to the lessee at the end of the lease term.

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Golden Manufacturing Company started operations by acquiring $150,000 cash from the issue of common stock. On January 1, Year 1,

NISA [10]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.

8 0

1 year ago

Feldspar Inc. is considering the capital structure for a new division. Management has been given the following cost information:

34kurt

Answer:

Option 4

Explanation:

In this question ,we have to compute the WACC which is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of common stock) × (cost of common stock)

For Option 1, it would be

= (0.3 × 10%) × ( 1 - 40%) + (0.7 × 12.5%)

= 1.8% + 8.75%

= 10.55%

For Option 2, it would be

= (0.4 × 10.5%) × ( 1 - 40%) + (0.6 × 13%)

= 2.52% + 7.8%

= 10.32%

For Option 3, it would be

= (0.5 × 11%) × ( 1 - 40%) + (0.5 × 13.5%)

= 3.3% + 6.75%

= 10.05%

For Option 4, it would be

= (0.6 × 11.7%) × ( 1 - 40%) + (0.4 × 14.2%)

= 4.212% + 5.68%

= 9.89%

For Option 5, it would be

= (0.7 × 13%) × ( 1 - 40%) + (0.3 × 15.5%)

= 5.46% + 4.65%

= 10.11%

So based on this, the management should accept option 4 as it derives the best debt asset ratio

The weightage of equity would be come

= 1 - weightage of debt

8 0

2 years ago

Thunder Roads Enterprises makes the following information available:

d1i1m1o1n [39]

Answer:

a. 30,000 units

Explanation:

Please see attachement

8 0

2 years ago

During 2019, Ocean Consulting had the following transactions with it clients (customers): On February 1, 2019, the company recei

vova2212 [387]

Answer:

$20,000

Explanation:

According to the given situation, the computation of stockholder equity is shown below:-

Stockholder equity = Service in cash + Sent bills

= $15,500 + $4,500

= $20,000

Therefore for computing the stockholder equity we simply applied the above formula so that the correct value could come

Hence, the stockholder equity is $20,000

6 0

1 year ago

Use the following information to answer question. Madelyn owns a small pottery factory. She can make 1,000 pieces of pottery per

notsponge [240]

Answer; a. $35,000.

sorry if wrong

4 0

2 years ago