Answer:
The amount of amortization expense the lessee would record for the first year of the lease is $131,125.
Explanation:
Since the lease agreement provides for the transfer of title of the asset to the lessee at the end of the lease term, this implies that the calculation of the amount of amortization expense the lessee would record will be based on the economic life of the asset. Therefore, we have:
First year amortization expense = (Amount at which the asset is recorded - Fair value at the end of 8 years) / Economic life of the asset = ($1,040,000 - $135,000) / 8 = $131,125
Answer:
No, there would be no existence of a transfer price that would make both the Receiver and Industrial Products Division financially better off than if the Industrial Products Division were to continue buying its receivers from the outside supplier
Explanation:
Assuming that the receiver division is selling all of the receivers it can produce to outside customers, there will be no existence of a transfer price that would make both the receiver and industrial products division financially better off than if the industrial products division were to continue buying its receivers from the outside supplier.
Reason being that the minimum transfer price that the selling division should be willing to accept surpasses the maximum transfer price that the buying division should be willing to accept.
So tyler company gets new customer which purchase 20% of the production whcih company sales during business year with th 40% discount.
Answer:
C. 1.25 times
Explanation:
Given: Cash 20,000 Accounts payable 11,000 Notes receivable 15,000 Wages payable 5,000 Stock 5,000 Retained earnings 20,000 Inventory 6,000 Notes Payable 8,000.
Current asset: Cash.
Current Liability: Accounts payable.
Now, calculating the quick ratio.
Formula; Quick ratio= 
⇒ Quick ratio= 
⇒ Quick ratio= 
∴ Quick ratio= 
Hence, Quick ratio is 1.25 times
