A company signed an operating lease agreement to use office space for 5 years. The company took possession and began to use the building on January 1, Year 1. Annual rent of $24,000 is due on the first day of each year. Assuming an implicit interest rate in the lease of 6%, the present value of the lease payments at the inception of the lease is $107,163. On December 31, Year 3, what amount should the company report as the lease liability balance on its balance sheet

Answers

Answer 1

Answer:

$22,642

Explanation:

The amount of lease liability that will be reported in the balance sheet on December 31 year 3 can be calculated as follows

           Opening    Cash payment     Outstanding   Interest rate   Closing

Year 1    $107,163      $24,000            $83,163           $4990          $88,153

Year 2    $88,153       $24,000           $64,153           $3,849         $68,002

Year 3    $68,002      $24,000           $44,002         $2,640         $46,642

Year 4   $46,642       $24,000           $22,642         $1,358           $24,000

Year 5    $24,000     $24,000                  -                   -                       -        

Total liability = $46,642

Non curret = $46,642 - $24,000 =$22,642

The amount of lease liability that will be reported in the balance sheet on 31 December year 3 is $22,642


Related Questions

A Registered Investment Adviser plans on offering options strategies as part of his services. For this added investment strategy, he will charge .6% of assets monthly. This information is added to the RIA's disclosure statement and the RIA tells all of his clients of the fees orally in seminars. Each of his clients signs an agreement regarding the options strategies and fees. Which statement is TRUE

Answers

Answer:

Option A will be the correct answer.

Explanation:

In the above question, Options are not given. Please find the attachment of the complete question.

RIA has become an individual or an organization that offers investment advice to high-net-worth investors as well as operates financial investments. This RIA rendered complete transparency, both oral and written form, to his shareholders, because of options techniques to be implemented and the fees associated. This would be the smartest method to do something about it.

Some other options are also not tied to the condition in question. Thus option A should be the perfect approach.

In an inert organizational culture, poor working relationships frequently develop between the organization and its employees. the organization tries to avoid layoffs. the organization emphasizes long-term employment. employees regularly receive rewards for their performance. values and norms help the organization build momentum.

Answers

Answer:

The correct answer is:  the organization emphasizes long-term employment.

Explanation:

An inert organizational culture is one that does not seek to adapt to new work processes and trends whose objective is to innovate and facilitate work and processes.

They are usually organizations whose culture is focused on more inflexible and rigid internal policies, whose focus is on the establishment of processes and does not focus on the relationships and integration of workers.

This type of organization focuses on long-term employment, which can culminate in the lack of innovation in personnel, ideas, processes and the improvement of total quality.

In an inert organizational culture, poor working relationships frequently develop between the organization and its employees the organization emphasizes long-term employment. Thus, option B is correct.

An organizational culture that is inert does not attempt to change in response to emerging trends and work processes with the aim of innovating and streamlining work and procedures.

They are often businesses whose internal rules are more strict and inflexible, whose emphasis is on establishing procedures rather than on fostering connections and worker integration.

Long-term employment is the main focus of this kind of organization, which can lead to a lack of innovation in staff, concepts, procedures, and overall quality.

Learn more about the inert organization here:

https://brainly.com/question/17185464

#SPJ6

Which of the following statements is correct regarding the capitalization rate used for interest capitalization? Question 24 options: If the average accumulated expenditures are less than the specific borrowing amount, use the interest rate associated with the specific borrowing for the entire average accumulated expenditures If there are no specific borrowings, use the interest rate on the largest debt outstanding If the average accumulated expenditures are less than the specific borrowing amount, use the weighted-average interest rate for all other debt for the entire average accumulated expenditures If there are no specific borrowings, do not capitalize interest

Answers

Answer:

Correct Answer:

1. If the average accumulated expenditures are less than the specific borrowing amount, use the interest rate associated with the specific borrowing for the entire average accumulated expenditures

Explanation:

This Option is the correct statement regarding to capitalization rate for interest capitalization.

"An investor has a portfolio of diversified blue chip stocks with a current market value of $350,000. The portfolio has a computed beta factor of 1.8. The customer wants to protect the portfolio from a declining market with the use of OEX contracts. The OEX closed this day at 350. To hedge with "at the money" contracts, the customer should:"

Answers

Answer: Buy 18 contracts

Explanation:

Hedging against the risk involved in an investment means the use of market strategies or financial instruments to offset risk.

When there is a drop in the market value, any loss that is incurred on the portfolio will have to be offset by the long puts gain. This implies that 10 put contracts will have to be required for hedging. This is calculated as:

= $350,000/(350 × 100)

= $350,000/35,000

= 10 contracts

Since the portfolio has a computed beta factor of 1.8, we then multiply 10 by 1.8. This will be:

= 10 × 1.8

= 18 contracts.

Sunland Real Estate Company management is planning to fund a development project by issuing 10-year zero coupon bonds with a face value of $1,000. Assuming semiannual compounding, what will be the price of these bonds if the appropriate discount rate is 9.8 percent?

Answers

Answer:

$384.141

Explanation:

Given the following :

Discount rate (r) = 9.8%

Semi-annual compounding

Face value = $1000

Period (t) = 10 years

Price of zero-coupon bond (P) :

Face value / ( 1 + r)^t

r =. 9.8%, compounded semianually

r = (9.8 / 100) = 0.098 / 2 = 0.049

Period (t) = 10 * 2 = 20

P = 1000 / (1 + 0.049)^20

P = 1000 / 1.049^20

P = 1000 / 2.6032

P = 384.14062

P = $384.141 ( 3 decimal places)

Explain the importance of international employment

Answers

Answer:

having international workers allow organisation to be connected two other country markets as well.they get to know the best places to get resources and how to approach different countries through being thought business norms and culture by international employees.

Answer:

Employment created through the investment of a country or the partnership of countries is known as international employment. International employment are important to provide employment opportunities to people , help in bringing the investment of foreign capital , increase the pace of economic activities , provide environment to operate with foreign people's knowledge , skill and technology , create variation in material production etc.

Rocky Mountain Tire Center sells 20,000 go-cart tires per year. The ordering cost for each order is $40, and the holding cost is 20% of the purchase price of the tires per year. The purchase price is $20 per tire if fewer than 500 tires are ordered, $18 per tire if 500 or more—but fewer than 1,000—tires are ordered, and $17 per tire if 1,000 or more tires are ordered. a) How many tires should Rocky Mountain order each time it places an order? b) What is the total cost of this policy?

Answers

Answer:

a) How many tires should Rocky Mountain order each time it places an order?

667 tires

b) What is the total cost of this policy?

total costs (including merchandise purchased) = $362,400total costs (not including merchandise purchased) = $2,400

Explanation:

we must find the EOQ for the three possible prices:

when price per tire is $17:

EOQ = √(2SD) / H

S = cost per order = $40

D = annual demand = 20,000

H = 20% x $17 = $3.40

EOQ = √[(2 x $40 x 20,000) / $3.40] = 685.99 = 686 tires

when price per tire is $18:

EOQ = √(2SD) / H

S = cost per order = $40

D = annual demand = 20,000

H = 20% x $18 = $3.60

EOQ = √[(2 x $40 x 20,000) / $3.60] = 666.67 = 667 tires

when price per tire is $20:

EOQ = √(2SD) / H

S = cost per order = $40

D = annual demand = 20,000

H = 20% x $20 = $4

EOQ = √[(2 x $40 x 20,000) / $4] = 632.46 = 632 tires

since all options are over 500 units but lower than 1,000, we must take the option where each tire costs $18

total cost:

20,000 x $18 = $360,000

(20,000 / 667) x $40 = $1,199.40

holding costs = average inventory = 667 / 2 = 333.5 x $3.60 = $1,200.60

total costs (including merchandise purchased) = $362,400

On January 15, 2021, Bella Vista Company enters into a contract to build custom equipment for ABC Carpet Company. The contract specifies a delivery date of March 1. The equipment was delivered on March 31. The contract requires full payment of $75,000 30 days after delivery. The revenue for this contract should be recorded on

Answers

Answer:

31 March 2021

Explanation:

The contract should be recorded on 31 March 2021 because according to the US Generally Accepted Accounting Principles, revenue should be recognize in the book only when service has been rendered to the customer, the selling price of product is fixed and confirmation of service arrangement and amount to be collected.

With regards to the above scenario, since the equipment was not delivered until 31 March, then 31 of March will be recognized.

Ratio analysis:___________.
a) Includes estimating the net present value of the investment opportunity.
b) Is generally adequate to fully assess an investment’s expected return.
c) Requires cash flow estimates for the investment’s entire expected holding period.
d) Serves as an initial evaluation of the adequacy of an investment’s expected cash flows.

Answers

Answer:

D. Serves as an initial evaluation of the adequacy of an investment's expected cash flows.

Explanation:

Ratio analysis serves as an initial evaluation of the adequacy of an investment's expected cash flows.

Ratio analysis can be defined as the analysis of different pieces of financial information in the financial statements of a business.

Ratio analysis is used to get insight about the financial wellbeing of a business. It is used by analysts to determine various aspects of a business, such as its profitability, liquidity, and solvency.

John has a rental application for a unit in his four-plex from a man in a wheel chair. The man wants to install a ramp by the back door and change a cabinet in the bathroom to allow the wheel chair to slide under. What are John’s choices as the unit owner?

Answers

Answer:

The modifications cannot be refused; the tenant can pay and should restore to original condition upon move out.

Explanation:

As it is mentioned that John has a rental application for a unit that means he is paying rent for that unit also he is unable to refuse it also if the renovation is done by the owner so the charges should be paid by tenant. For any modification, the tenant permission is important but the cost that are incurred is to be born by the tenant

You have been assigned to research behaviors related to various reactions to different types of media. The one firm directive you have been given is that you must observe the subjects in their natural settings. Which of the following is TRUE about the research you will be conducting?a. It must not include either qualitative or quantitative methods. b. It must include quantitative methods. c. It must include both qualitative and quantitative methods. d. It must include qualitative methods.

Answers

Answer:

c. It must include both qualitative and quantitative methods.

Explanation:

For the research of behaviors related to various reactions to different types of media, I will consider both qualitative and quantitative methods.

Qualitative and quantitative methods together provide more comprehensive results of the research. Qualitative methods give the quality of the media type and quantitative methods will give quantitative data such as how many people are using the particular media type and for how much time.

Hence, the correct answer is " c. It must include both qualitative and quantitative methods."

Roberto is considering attending a concert. He estimates the ticket price will be $94, and the cost of driving to the concert and parking will total an additional $21. In order to attend the concert, Roberto will have to take time off from his part-time job. He estimates that he will lose 4 hours at work, at a wage of $12.72 per hour.What is Roberto's opportunity cost of attending the concert

Answers

Answer:

$166.08

Explanation: Take $94, add $21, giving you $115, then take $12.77 ( his hourly rate at work ) and if he loses 4 hours of work, take 4 multiply it by $12.77, which gives you $51.08, then add that to $115, which equals $166.08.

what kind of harm can be done if a manager uses social network analysis to uncover the invisible structure in their organization sparknotes

Answers

Answer:

he poses a threat from competitors and or government to the company

Explanation:

By such actions. the manager will have exposed information that easily could be read on Sparknotes by an emerging or already existing competitor.

For example, information pertaining to top management remuneration or decision structure may be one such invisible organizational structure. Such information can reveal the weaknesses of the organization

Grace found herself in a breach of contract situation where the other party met some of the terms but not others. Grace thought it would cost a lot of time and money to sue, so she decided to accept the work that had been done and call it good. This is an example of ______.

Answers

Answer: accepting partial performance

Explanation:

From the question, we are informed that Grace found herself in a breach of contract situation where the other party met some of the terms but not others and she thought it would cost a lot of time and money to sue, so she decided to accept the work that had been done and call it good.

The above scenario is an example of accepting partial performance. This is a partial performance because there's a breach of contract as not all the terms that were involved are met.


Name the one sport in which neither the spectators nor the participants know the score or
the leader until the contest ends.

Answers

Answer:

Boxing

Explanation:

Melissa works as a computer data-entry operator at VeraSign. Melissa informs VeraSign that she suffers from carpal tunnel syndrome, causing pain in her wrists rendering her unable to use a keyboard. Melissa requests as an accommodation that VeraSign hire a data-entry employee to enter the information on her behalf. VeraSign refuses to do so. VeraSign has

Answers

Answer: not violated the American with Disabilities Act(ADA) because the requested accommodation will have undue hardship on employer

Explanation:

From the question, we are informed that Melissa works as a computer data-entry operator at VeraSign and that Melissa informs VeraSign that she suffers from carpal tunnel syndrome, causing pain in her wrists rendering her unable to use a keyboard.

We are further told that Melissa requests as an accommodation that VeraSign hire a data-entry employee to enter the information on her behalf and that VeraSign refuses to do so.

It should be noted that VeraSign not violated the American with Disabilities Act due to the fact that the requested accommodation will have an undue hardship on VeraSign.

As a human resource manager, Janese commits 5% of the annual budget toward instituting new programs that reward employees for effectively handling diversity. Janese is playing the role of a(n)

Answers

Answer:

Entrepreneur

Explanation:

An entrepreneur can be defined as an individual that sets up a business and takes financial risk, with the aim to make profit.

It can also be simply defined as an individual that sets up and takes financial decisions for a business with the aim of making profit.

In the question above, Janese is making financial decisions for every employee and as such can be called an entrepreneur.

Cheers.

There are three key reasons for putting the customer into customer solutions in selling: (1) considerable time and effort is necessary to fully understand a specific customer's requirements; (2) effective customer solutions are based on relationships among sellers and buyers; and (3)

Answers

Answer:

Consultative selling is central to providing novel solutions for customers, thereby creating value for them

Explanation:

The customer is not actually buying product in most cases, he is actually buying solution of its problems which means that

Analyzing customer's requirements is to make sales because if we don't know what actually the customer is demanding then we can't satisfy our customer. Effective customer relationship play vital role in making sales.Consultative selling helps in meeting the requirement of the customer, building customer loyalty by recommending them best option. This helps in generating value for both customers and suppliers.

Pls help pls

Why is there a huge demand of professionals in the field of agriculture??

Answers

Agriculture is a important field in countries development.Agriculture contributes 10-50℅ GDP to most of the countries.Agricultural determines the Development rankings.Agriculture helps the country to feed all the citizens .Hence there is a huge demand of professionals

What are the typical fees banks charge?

Answers

What are the typical fees banks charge?
The average monthly maintenance fee on a small bank checking account is $10.95, compared to $16.35 at large banks.

What can hope do to change the numbers 2, 3, 5 and 6 to lowercase letters?

Answers

Answer: D

Explanation:

Use the Mutlilevel List Icon

Why feasibility analysis is important before starting a new business venture?state the role feasibility analysis with in entrepreneurial success.

Answers

i am a right outside linebacker blitzing off the edge

Olin, a professional artist and art teacher, convinces Plato, who has no artistic ability, that he has considerable talent and induces him to pay Olin $10,000 for art lessons. When Plato realizes the truth, he files a suit against Olin. Plato is most likely to recover on the basis of

Answers

Answer:

Fraud

Explanation:

Fraud can be defined as a criminal deception or deceit that is aimed at resulting in financial gain.

From the above question, Olin defrauded Plato of $10,000 despite knowing that Plato had no talent. This is fraudulent and as such can help Plato's case against olin.

Cheers.

Janis owns and operates a store in a country experiencing a high rate of inflation. In order to prevent the value of money in her cash register from falling too quickly, Janis sends an employee to the bank four times per day to make deposits in a interest-bearing account that protects the store's revenues from the effects of inflation.(a) This is an example of the:i. menu costsii. unit of account costsiii. shoe leather costs of inflation.(b) Explain briefly the nature of the costs imposed.

Answers

Answer:

shoe leather costs

Explanation:

The shoe-leather cost is the cost that deals in time and effort which people spent against the inflation effect i.e reduction in inflation like less cash held so that it would make extra trips to the bank

Also if the inflation of the economy rises so the consumer spending would be less as it directly affects the purchasing power of the customer

So the time and cost effort spent is known as shoe leather cost

A business client is looking for ways to decrease its monthly premiums. To get down to the premium level sought after by the company, the agent realizes they have to go to a high deductible health plan. As part of your advice to the business, what should you include in your discussion?

Answers

Answer:

"Health savings accounts (HAS)" is the appropriate answer.

Explanation:

HAS should be used with values that are generally insurance coverage. With either an HSA, extra cash can be placed into another consideration that has been protected mostly on the purchase price, and afterward investments can also be used for predefined hospital expenses.Since the investments throughout the HSA consideration could also be used for healthcare facilities, respondents frequently use them instead of unprotected methodologies including certain chiropractic appointments and perhaps certain health-related facilities not encompassed by their insurers.

what will happen to trade if business is flourishing?​

Answers

Answer:

if the business is florishing, as an example Medical sectors during pandemic they are going to grow till they are in a high demand

You are interested in purchasing a digital camera and find one priced extremely low. As you are about to purchase the camera, you discover that it does not come with a power cord, memory card, or battery. You purchase all of these separately. The total cost surpasses what you would have paid at another store that listed the camera at a higher price, but included all the accessories. You have been a victim of the _______ technique.

Answers

Answer:

low-ball technique

Explanation:

Based on the scenario being described it seems that you have been a victim of the low-ball technique. This is a persuasion tactic in which an item is marked at a very tempting low price in order to get customers to commit to the purchase, but when they do commit the price is increased in one way or another. Which in this case was by requiring extra components to be able to use the camera.

An individual who has completed college has been working for 9 years and is now 30 years old. He is thinking about returning to school in a few years to complete his masters degree and wants to set up a 529 Plan with himself as the beneficiary. Can he do this? A. No, because the donor and the beneficiary must be different persons in a 529 Plan B. No, because 529 Plans cannot be opened after age 30 C. No, because 529 Plans must have an independent trustee D. Yes

Answers

Answer:

D Yes

Explanation:

An uncommon aspect of 529 Plans is that both donor and receiver can be the same person. There is no age restriction on who may be the beneficiaries of the account. This person may themselves open a 529 plan and be both the donor and the beneficiary.

Therefore from the above explanation the correct answer is D

1. What is the break-even point for this establishment? 2. If the restaurant wanted to make a profit of $70,000 based on these numbers, how much would have to be sold? 3. If sales rose to $700,000, what would profit increase to?

Answers

Answer:

I wasn't able to access the full question, but I am writing down all the formulas that would be used to solve the questions.

Explanation:

Requirement 1.

The Breakeven Point would be calculated using the following formula:

Breakeven Point = Fixed Cost / (Selling Price per Unit - Variable Cost per Unit)

Requirement 2.

The target profit will require the company to achieve certain number of units to be sold. The level of units can be calculated using the following formula:

Units Sold For Desired Profit (Units) = (Fixed Cost + Target Profit) / (Selling Price per Unit - Variable Cost per Unit)

Requirement 3.

If we multiply selling price on the both sides of requirement 2 formula then we have following formula:

Sales ($) = (Fixed Cost + Target Profit)   *   Selling Price / (Selling Price per Unit - Variable Cost per Unit)

Now we can calculate the Target profit which will only be the variable unknown.

Clay buys an MP3 player for $200 and a pair of stereo speakers for $600 from a Discount City store, and downloads $300 worth of digital music from E-Music. To be enforceable, the contract that must be in writing is the purchase of

Answers

Answer:

the pair of stereo speakers

Explanation:

UCC rules and the Statute of Frauds state that any contract for the sale or lease of goods that are worth more than $500 should be in writing. The pair of speakers are worth $600, since they are worth more than $500, then any sales contract must be in writing.

Other Questions
Help ASAP plssss! Thanks Which temperature during the week is the closest to 0? Explain how you decided this using absolute value.Which temperature during the week is farthest from 0? Explain how you decided this using absolute value.Which is the coldest temperature? Explain how you determined this using the number line.Which is the warmest temperature? Explain how you determined this using the number line.Part 2: Weather ReportUse the information from the analysis and develop a weather report. You can develop a flyer or make a presentation, video or audio recording of yourself, or script. Use your creativity! Make sure to include the information from all six questions. Coefficient and degree of the polynomial Factor completely 3x^2 + 5x + 1. (3x + 1)(x + 1) (3x + 5)(x + 1) (3x 5)(x + 1) Prime The diameter of a large lawn ornament in the shape of a sphere is 16 inches. What is the approximate volume of the ornament? Use 3.14 for Pi. Round to the nearest tenth of a cubic inch. Recall the formula V = four-thirds pi r cubed. which statement accuretly contrasts the effects of judahism and christianity? Convert into slope-intercept form: [tex]y-1=m(x-3)[/tex] Can someone please help me with these 3 questions and help me check my work? where those involved in the Armenian genocide brought to justice? and Did their punishment help deter future issues? Which statement is false? Question 4 options: All whole numbers are integers. All natural numbers are whole numbers. All real numbers are irrational numbers. All whole numbers are real numbers. The sum of the lengths of any two sides of a triangle must be greater than the third side. if a triangle has one side that is 11 cm and a second side that is 1 cm less than twice the third side, what are the possible lengths for the second and third sides? Find the amplitude of y = -2 sin x -19 ? can u give in points ...... Given the function g(x) = x^2 10x + 19, determine the average rate of change ofthe function over the interval 3 < x < 6. I NEED HELP ASAP PLEASE Read the excerpt from "Flight into Yesterday." This leg was also the most dangerous of the entire trip. Howland, 2,600 miles to the east, was a tiny speck of land in the middle of the vast Pacific. It would take all of her skill as a pilot and Freds as a navigator to find the island. But danger did not worry her. She knew that flying carried risks. She faced them and accepted them. What mattered was setting herself a challenge and meeting it. What mattered was showing that women could do what men could do and encouraging other women to do what they were capable of. That was why she was flying over the Pacific, looking for a speck of land. Fame was never her goal. The important thing was to do what she had set out to do and to do it as well as she knew how. She had been that way all her life. Amelia Earhart, world-famous flier, was very much like the young girl who once lived in Atchison, Kansas. What best describes the authors purpose? add the correct question tag: everyone seems happy about the decision.......? Name organization were in alcoholic might find help and one where a teen who has a friend or family member who is an alcoholic might find help. Find the length of the third side. If necessary, round to the nearest tenth.1213Answer:Submit Answerattempt 1 out of 2Privacy Policy Terms of ServicePLS HELP ASAP Hi i need help on this im not that smart sorry, what is the x-intercept of the graph that is shown below