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
The answer is Boxplot II. The standard deviation for the data associated with Boxplot II will likely have a larger standard deviation. Boxplot II has a greater spread than Boxplot I, as measured by the interquartile range, which is related directly to the standard deviation of a data set.
Answer:
A) 32 percent interest B) Yes it will be paid
Explanation:
23 times 42 divided by 7
The four 'Cs' of credit are : Character, Capacity or Cashflow, Capital and Conditions.
Out of the 4 'Cs' of credit, the two 'Cs' that deal with the earning potential and available cash are 'Capacity' and 'Capital'.
Capacity: It is the assessment the of the ability of any business to pay bills and maintain the cash flow. It contains in it the debt structure of the firm and the unused credit.
Capital: It is the assessment, if a company has the ability to pay back its creditors by the help of its financial resources or available cash.
Answer:
A perfectly elastic demand curve means that the firm can sell as much output as it chooses at the current price.
Explanation:
The perfectly elastic demand implies that the demand curve is horizontal line parallel to the X axis. The price is fixed at a point and the firm can sell any amount of output at this point. The demand is infinite at the given price level. If the firm makes any changes in this price level, the demand will become zero.
