t.l. franklin corporation has three costs: a, which is variable; b, which is fixed; and c, which is semivariable. the company uses the high-low method and extracted the following data from its accounting records: at 196,000 hours of activity, cost a totaled $2,642,000. at 110,408 hours, the low point during the period, cost c totaled $1,514,000; at 216,000 hours, the high point, cost c's fixed portion amounted to $2.00 per hour. at 144,000 hours of activity, the sum of costs a, b, and c amounted to $8,194,000. required: a. compute the variable portion (total) of cost c at 110,408 hours of activity. b. compute cost c (total) at 144,000 hours of activity. c. compute cost b (total) at 144,000 hours of activity.
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T.l. franklin corporation has three costs : The answer is provided on the supporting sheet. All of the elements have been thoroughly explained and formatted. Refer to the supporting sheet for a more complete answer.
What is corporation?
A corporation is a legal body recognised by private and public law "born out of legislation"; a legal person in legal context) and recognised as such in law for certain purposes. 10 Charters were used to establish early incorporated entities . The majority of governments currently permit the formation of new corporations through registrations. Corporations come in a variety of forms, but are often classified by the law of the country in which they are chartered based on two factors: whether they can issue stock or if they are founded to generate a profit.
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Please refer to the photos attached below, I cannot type it here because of so called "inappropriate words"
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iddleton company uses the perpetual inventory system. the company purchased an item of inventory for $90 and sold the item to a customer for $150. how will the sale affect the company's inventory acco
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The sale affect the company's inventory account and the account will decrease by $130.
What is inventory account?
Inventory accounting is the branch of accounting concerned with the valuation and recording of changes in inventoried assets. The inventory of a business typically includes commodities in three stages of production: raw goods, in-process goods, and finished goods that are ready for sale. Inventory accounting assigns values to each of these three processes and records them as corporate assets. Assets are things that will most likely be valuable to the firm in the future, so they must be precisely valued in order for the organisation to have a precise valuation.
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the capital asset pricing model question content area bottom part 1 a. provides a riskreturn tradeoff in which risk is measured in terms of the market returns. b. measures risk as the correlation coefficient between a security and market rates of return. c. depicts the total risk of a security. d. provides a riskreturn tradeoff in which risk is measured in terms of beta.
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The capital asset pricing model offers a risk-return trade-off in which risk is expressed as beta.
What is capital asset?A capital asset is defined as any property held by an assessed, whether related to their business or profession or unrelated to their business or profession. It encompasses all types of property, whether mobile or immobile, tangible or intangible, fixed or circulating. Capital assets are defined as: a) any type of property held by an assessed, whether or not related to the assesses business or profession. b) Any securities held by a FII that has invested in such securities in accordance with the SEBI Act of 1992. Homes, cars, investment properties, stocks, bonds, and even collectibles or art are examples of capital assets.
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when auditors encounter evidence of small-scale employee fraud that could not have a material effect upon the financial statements the auditors should
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consider the implications for other aspects of the audit.
What are the responsibilities of an auditor ?
An auditor is a designated individual who examines and confirms the correctness of financial documents and makes sure that businesses adhere to tax regulations. Their main goal is to safeguard companies against fraud and draw attention to any inconsistencies in accounting practices, among other things.
In general, being an auditor is not a simple job. The auditor has accepted obligations to multiple parties and the responsibilities that come with being a recognized professional.
The trustworthiness of the financial statements and the information they contain essentially depends on the auditor's view. Compared to unaudited financial accounts, audited financial statements have a very high level of correctness and dependability.
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green thumb nursery has 39,000 shares outstanding at a market price of $63.29 per share. the earnings per share are $3.29. the firm has total assets of $334,000 and total liabilities of $193,000. today, the firm announced a share repurchase for $89,000 of its stock. what is the earnings per share after the repurchase?
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The earning per share after the repurchase = $668.7199
Earning per share :Earnings per share is the financial value of earnings per outstanding share of common stock for a company. It's a crucial measure of commercial profitability and is generally used to price stocks. Earnings per share( EPS) is a company's net profit divided by the number of common shares it has outstanding. EPS indicates how important plutocrat a company makes for each share of its stock and is a extensively used metric for estimating commercial value.
Earnings per share or EPS is an important fiscal measure, which indicates the profitability of a company. It's calculated by dividing the company's net income with its total number of outstanding shares.
Simplifying :Earnings per share after the repurchase =EPS before repurchase × Number of shares before repurchase ÷ (Number of shares before repurchase - Share repurchase amount ÷ Share price)
=3.29 × 334,000÷ (193,000- 89,000 ÷ 63.29)
= 1098860 ÷ 1643.229
= $668.7199
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while paula likes the structure provided by the rational decision-making process, you caution her that it has some shortcomings. why is the rational decision-making process difficult to apply completely in many situations? check all that apply.
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The rational decision-making process difficult to apply completely in many situations are:
Managers don't always assess situations rationally.
Administrators may not always have access to complete and accurate information.
Managers are limited by their own values and unconscious beliefs.
Rational decision-making uses objective data, logic, and analysis to solve problems or achieve goals, rather than subjectivity and intuition. Here's a step-by-step model to help identify the problem.
Rational decision-making is the opposite of intuitive decision-making. It is a rigorous procedure with objective knowledge and logic. It is about identifying problems to solve, gathering facts, identifying and analyzing options and outcomes, and considering all relationships to make decisions.
Rational decision-making is important. Because by cultivating an objective perspective, it provides a way to overcome the specific challenges we face and approach new opportunities.
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suppose that an increase in health consciousness increases the demand for fitness centers across the country. other things being equal, we can expect the wages of fitness instructors to: a) increase temporarily but then decrease. b) decrease. c) stay the same. d) increase.
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Suppose that an increase in health consciousness increases the demand for fitness centers across the country. other things being equal, we can expect the wages of fitness instructors to: d) increase.
A wage is fee made by way of an business enterprise to an employee for paintings performed in a specific period of time. some examples of salary payments encompass compensatory payments along with minimum salary, triumphing wage, and every year bonuses, and remunerative bills consisting of prizes and tip payouts.
Wages include, however aren't confined to: Salaries, hourly pay, piece charge, or payments via the task. Commissions and bonuses. overtime and holiday pay.
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in the opening vignette, predictive modeling is described as: group of answer choices estimating the future using the past. not yet accepted in the business world. the least practiced branch of data mining. unable to handle complex predictive problems.
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In the opening vignette, predictive modeling is described as estimating the future using the past
By looking for patterns in a set of input data, predictive modeling uses mathematics to foretell future events or results. It is an essential part of predictive analytics, a sort of data analytics that makes use of both recent and old data to predict activity, behavior, and trends. Today's predictive modelling approaches can find trends in the data to help a business foresee impending hazards and opportunities.
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The multiplier is 5 and, as a result of a change in expenditure, equilibrium expenditure and real gdp change by $200 billion. What was the initial change in autonomous expenditure?.
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The initial change in autonomous expenditure is $40 billion
Calculation
Multiplier (k) = 5
Change in real GDP (Δy) = $ 200 billion
So, k = Δy/ΔA
k = $200/ ΔA
ΔA = 200/k = 200/5 = 40
Hence, ΔA = $40 billion
What is expenditure?An expenditure is a payment made in cash or on a credit card to buy goods or services. Unlike an expense, which is documented in a period after it has been used up or expired, it is recorded at a single point in time (the time of purchase). The various sorts of expenses utilized in accounting and finance will be covered in this handbook.An accountant must provide proof that a transaction took place in order to report the occurrence of an expense. A sales receipt, for instance, will serve as evidence of an over-the-counter transaction, whereas an invoice will serve as a demand for payment for products and services. Organizations can maintain strict control over their transactions thanks to documentation. The objective is often to forecast earnings and losses while still monitoring revenues.To learn more about expenditure, refer to https://brainly.com/question/935872
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Gil_____ is under significant pressure to resign from the la city council because of his participation in a secretly recorded conversation which included racist remarks.
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Given his involvement in a covertly recorded conversation that contained racial statements, Gil Cedillo is facing intense pressure to resign from the LA city council.
Why is LA city council member Gil Cedillo under so much pressure to step down?As a result of his silence during the contentious and divisive dialogue that left supporters heartbroken and opponents emboldened, he is now the target of widespread resignation calls and condemnation. Following a commotion over the racial and offensive remarks, Martinez and Herrera both resigned this week.
When did he intend to retire?After neighborhood activist Eunisses Hernandez won the District 1 primary in June, Cedillo had previously announced his resignation and will do so on December 11. According to the council member absence policy, he could continue serving on the city council until December 11 without attending.
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when an organization undertakes a complete overhaul of its critical work processes to make them more efficient and able to deliver higher quality, it is engaging in:
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Reengineering occurs when a company conducts a full revamp of its core work processes in order to make them more effective and capable of delivering greater quality.
What is Reengineering?Business process re-engineering is a business management strategy that was initially developed in the early 1990s and focuses on the analysis and design of internal workflows and business processes. BPR tries to help businesses fundamentally rethink how they do business in order to improve customer experience, cut operational costs, and compete on a global scale. Business process re-engineering (BPR) is the technique of rethinking and changing how work is done in order to better serve an organization's objectives while also lowering expenses. Organizations reengineer two critical aspects of their operations. First, they employ cutting-edge technology to improve data transmission and decision-making processes. They then transform functional organizations into functional teams.
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according to the textbook, the strategic management process begins with . . . group of answer choices strategy implementation strategy formulation strategy analysis talking to people. none of the above.
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According to the textbook , the strategic management process begins with strategy formulation .
Option B is correct .
Strategic management process :The strategic management process begins with an understanding of strategy and performance. As we've noted in this introductory chapter, strategic management is both an art and a wisdom, and it involves multiple conceptualizations of the notion of strategy drawn from recent and ancient history. Strategic management process is a nonstop culture of evaluation that a business adopts to eclipse the challengers. Simple as it may sound, this is a complex process that also covers expressing the association's global vision for current and unborn objects.
What are the varieties of strategic management?The five types of strategic management numerated from utmost simplistic to utmost complex are direct, adaptive, illuminative, suggestive, and transcendent. These five types of strategic management characterize a continuum of organizational focus and action.
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there are currently 15.34 million people who are not working but are available and actively looking for jobs and 506.21 million people who are employed. what is the unemployment rate? round your answer to the nearest tenth.
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There are currently 15.34 million people who are not working but are available and actively looking for jobs and 506.21 so, there are 2.9 million people who are employed.
The unemployment rate is the level of individuals in the workforce who are jobless. Subsequently, estimating the joblessness rate requires distinguishing who is in the workforce. The workforce incorporates individuals who are either utilized or jobless.
What is the most elevated joblessness rate in US history?
The latest noteworthy drop happened during the Coronavirus pandemic somewhere in the range of 2020 and 2021. After broad exploration, our information examination group closed: The most terrible joblessness experienced in the US occurred during the Economic crisis of the early 20s (1929-1933), when the joblessness rate came to 24.9%.
Why would that be a work lack?
The pandemic caused a significant disturbance in America's workforce something many have alluded to as The Incomparable Renunciation. In 2021, in excess of 47 million specialists quit their positions, a significant number of whom were looking for a superior balance between serious and fun activities and adaptability, expanded pay, and a solid organization culture.
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when the product price rises from $150 to $200, the quantity demanded falls from 1,000 to 800 units. using the simple standard (non-midpoint) formula, the price elasticity of demand in this range is:
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The price elasticity of demand in this range is -0.61.
What is the price elasticity of demand?The price elasticity of demand is a measure that is used to determine how the quantity demanded changes when the price of a good changes. The price elasticity of demand is the ratio of the percentage change in quantity demanded to the percentage change in price.
The price elasticity of demand = percentage change in quantity demanded / percentage change in price
percentage change in quantity demanded = (800 / 1000) - 1 = -0.20 = -20%
percentage change in price = (200 / 150) - 1 = 0.33 = 33%
The price elasticity of demand = -20% / 33% = -0.61
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in many situations an employee initially receives cash and thus has custody. because this cannot be avoided, good control dictates that . multiple select question. two people should open the mail the employees opening the mail should prepare the bank deposit checks should be endorsed immediately
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It dictates that the remittance advice should be sent to the controller's office for recording and cash should be deposited daily and intact.
The treatment of individuals inside a company is key to long-term fraud prevention. Genuine concern for the professional and personal needs of their subordinates and fellow managers can be demonstrated by managers and supervisors at all levels, and subordinates can reciprocate by showing concern for one another and their bosses.
Missing cheque cancellations raise suspicion. However, banks no longer give their customers their cancelled cheque back. Instead, copies of the cheque fronts are sent with the bank statement, which is frequently received online. This information is adequate for account reconciliation, but it does not contain the details that could help a business or auditor identify or look into potential frauds.
The risk of a major misstatement for each pertinent assertion discovered for the cash balance must always be taken into account when evaluating the architecture of internal controls relating to cash.
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which strategy is best described by the following statement: "deliver superior value by meeting or exceeding buyer expectations on product attributes and beating their price expectations"?
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this strategy is called Focused Low cost.
What is focused low cost strategy ?
In order to boost sales and acquire a competitive edge, this technique involves companies providing comparable goods in a certain niche lowering their prices.
Lowering expenses is a better strategy to draw customers than sacrificing on value or investing already limited funds in developing a product.
Whether they are billionaires, millionaires, or just average people, buyers are always comparing prices. Additionally, you can be sure that more customers will come to your establishment if you sell the same product at lower costs than your competitors.
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on november 1st, chipotle corp. received a $2,000 note from a customer with a rate of 9% interest that is due in six months. the adjusting entry on december 31st for this note receivable would be:
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The adjusting entry of interest rates on december 31st for this note receivable would be: $7,000.
What are interest rates?
In relation to the amount lent, deposited, or borrowed, the amount of interest payable each period is expressed as an interest rate (called the principal sum). The amount lent or borrowed, as well as the interest payment, frequency of compounding, and the period of time during which it is lent, deposited, or borrowed, all affect how much interest will be charged overall. The rate calculated over a twelve-month period is the annual interest rate. Other interest rates are applicable over longer time frames, such a month or a day, although they are typically annualized.The interest rate has been described as "an measure reflecting the preference... for a dollar of now [income] over a dollar of future income."
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Starting a new business in pursuit of an opportunity to introduce a new product or service to market through innovation is engaging in the process of ________.
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Starting a new business in pursuit of an opportunity to introduce a new product or service to market through innovation is engaging in the process of entrepreneurship
What does entrepreneurship mean ?The process of starting a new business and taking on any associated risks with the intention of turning a profit is referred to as entrepreneurship. Entrepreneurs are those who start new businesses and take on all the challenges involved in its growth and operation.service to market through innovation is engaging in the process of entrepreneurshipEntrepreneurship is essentially the act of creating, setting up, and managing a new business in order to make money while taking on financial risk.Four categories are most frequently used to classify different types of entrepreneurship:
small business.scalable start-upsbig business or intrapreneurship.entrepreneurial social workTo learn more about entrepreneurship refer to:
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problems created by differences between countries' antitrust rules, labor laws, patents, copyrights, taxes, product liability, and child labor laws relate to which forces in the global business environment?
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The forces in the global business environment that relate to the problems created by differences between countries' anti-tourism rules are legal and regulatory forces.
How do legal and regulatory forces impact business?In the globalized business environment, companies seek to internationalize their activities with the objective of generating profit, but such a strategy must be analyzed in relation to the local market, since every country has a set of legal forces that provide the guidelines for a business. , such as taxes, fees and bureaucratization.
Therefore, legal and regulatory forces must be strictly followed by companies, and companies must choose the expansion strategy in a way that is aligned with their objectives to a country whose laws and regulations are more flexible and easier to implement.
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Answer:legal regulatory
Explanation:
symon's suppers company has announced that it will pay a dividend of $4.29 per share one year from today. additionally, the company expects to increase its dividend by 4.7 percent annually. the required return on the company's stock is 10.9 percent. what is the current share price?
Answers
From the giving information, the Symon's suppers company current share price is $69.19
Share price = Next year dividend/ ( Required return - growth rate )
= 4.29/ ( 0.109 - 0,047
= $69.19
The price at which a security was most recently sold on an exchange is known as the "current price."Buyers and sellers use the current price as a starting point.Although current pricing is a good reflection of current worth, supply and demand may cause the actual price of the next sale to vary.Market value and current price are synonyms. It is the most recent trading price for a share of stock or other security. The price at the moment serves as a benchmark in an open market. It shows what a buyer would be willing to pay and what a seller would accept for a later transaction involving that security.Learn more about Current Price, here
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nutsy's organic peanut butter inc. has beginning inventory in their peanut crushing department of 30,000 units, which includes $3,000 of direct materials and $4,000 of conversion. during the period, nutsy started 180,000 units and completed 200,000 units. ending inventory was 60% complete with respect to direct materials and 20% complete with respect to conversion. nutsy's costs for the period are as follows: beginning inventory: $7,000 direct materials added: $491,400 conversion costs added: $804,000 how much cost is assigned to ending inventory in the current period?
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All the goods, merchandise, and supplies that a company keeps on hand in anticipation of selling them for a profit are referred to as inventory. Example: Only the newspaper will be regarded as inventory if a newspaper vendor utilizes a vehicle to distribute newspapers to clients. The car will be considered an asset.
Explain about the Inventory?counting noun A written inventory is a list of all the items in a specific location, like all the goods in a store. He compiled a list of everything that would remain before beginning. Synonyms: record, listing, catalogue, list additional words for inventory Advanced Learner's Dictionary from Collins COBUILD.
Although there are more types of inventory, the four main ones are raw materials and components, finished goods, work-in-progress, and maintenance, repair, and operational supplies.
Products in various stages of preparation for sale are referred to as inventory in accounting terms, including: Finished products (that are available to be sold) Work-in-progress (meaning in the process of being made) (meaning in the process of being made) components, raw (to be used to produce more finished goods)
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a country produces two goods, soda and chips. it currently exports soda and imports chips. if it were to impose a tariff on chips, a. both imports of chips and exports of sodas would fall. b. imports of chips would fall, but exports of sodas would rise. c. both imports of chips and exports of sodas would rise. d. imports of chips would rise, but exports of sodas would fall.
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A) A country manufactures two products: soda and chips. At the moment, it exports soda and imports chips. If it imposed a tariff on chips, a. both chip imports and soda exports would fall.
What is a tariff?Most countries are constrained by their natural resources and their ability to produce certain goods and services. They trade with other countries to meet the needs and demands of their population. However, trade isn't always conducted amicably between trading partners.
Policies, geopolitics, competition, and a variety of other factors can all make trading partners unhappy. Tariffs are one method by which governments deal with trading partners with whom they disagree.
Tariffs are taxes imposed by one country on goods and services imported from another country in order to influence it, raise revenue, or protect competitive advantages.
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if carissa has a $176,000 home insured for $120,000, based on the 80 percent coinsurance provision, how much would the insurance company pay for a claim of $13,000?
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The claimable insurance amount is $11,079.55
The insurance is calculated asGiven data in the problem
[120,000/(.80*176,000)] *13,000 = $11,079.55
The value of the home = $176,000
The insured amount of the house = $120,000
80% coinsurance provision = 0.8 × $176,000 = $ 140,800
Claimed amount = $11079.55
hence, the amount the insurance company will pay = $11,079.55
The quantity of coverage charges charged via way of means of the coverage corporations is decided via way of means of records and mathematical calculations performed via way of means of the underwriting branch of the coverage company. The stage of coverage top class charged to a client relies upon on statistics that exists approximately lifestyles history, age and health.
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xavier wants to know how much his company owns and how much it owes. he should look at the a. asset list. b. income statement. c. balance sheet. d. statement of cash flows.
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He should look at the balance sheet.
The balance sheet of a business, also referred to as a "statement of financial position," lists the company's assets, liabilities, and equity (net worth).
Why is a balance sheet important?In addition to listing the company's assets and liabilities, a balance sheet serves the purpose of providing interested parties with information about the company's financial position. All investors should be able to use, interpret, and read a balance sheet. A balance sheet might provide information or justification for buying a stock.The balance sheet of a business, also referred to as a "statement of financial position," lists the company's assets, liabilities, and equity (net worth). The income statement, cash flow statement, and balance sheet together form the foundation of any company's financial statements.To learn more about : Balance sheet
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miss take, the bookkeeper, forgot to record the adjusting entry for revenues earned during the period, but not yet collected. what is the effect of this error on the accounting equation?
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Assets, net income, and owners' equity are all understated. Let's have a better understanding of what would have happened if this submission had been reserved. Both the net income and the accounts receivable would rise. However, since no entry was passed, the net come and existing assets were overstated.
Adjusting entries are journal entries made at the conclusion of a period to correct accounts before the financial statements are prepared. They are also known as adjusting journal entries. The accounting cycle's fourth step is this one. To match revenue and costs in the period, adjusting entries are most frequently employed in accordance with the matching concept.
Adjusting entries are journal entries made at the conclusion of a period to correct accounts before the financial statements are prepared. They are also known as adjusting journal entries. The accounting cycle's fourth step is this one.
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the most desirable combination of output attainable with existing resources, technology, and social values is known as the: group of answer choices optimal mix of output optimal mix of production efficient mix of output efficient choice of production
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The most desired mixture of output that is possible given the available resources, technology, and social values is referred to as the optimal mix of output.
The production method uses the least amount of skilled labor, making it the most financially and operationally efficient. A point inside the curve, such as 300 guns and 350 flowers (point G), denotes an output combination created with less resources than are available (unemployment) or with all the resources available but with inefficient use of those resources technology (underemployment). The maximum output for two items under resource constraints is shown by the production possibilities curve. It also exemplifies the opportunity cost of resource allocation choices. Market or monopoly power is the capacity of a firm (or collection of firms) to increase and maintain prices above the level that would prevail under competition. When market power is used, output is decreased and economic welfare is lost. Equilibrium calls for the marginal cost and price to be equal. In a market that is completely competitive, P = AR = MR, where P stands for price, AR for average revenue, and MR for marginal revenue. Thus, the appropriate choice is (B.) At the output level where marginal revenue and marginal cost are equal, profit is maximized.
There are three primary production categories to pick from:
Job production, in which each item is created separately and is finished before the next one,technology.
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Kacey is working on an advertising campaign for a new granola bar. She develops an online survey to help her company decide which flavor combinations would make the most sense to invest in based on consumer preference. What position does Kacey MOST likely have in her company?
o market research analyst
o advertising, promotions, and marketing manager
o art director
o public relations specialist
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Kacey MOST likely has a market research analyst position in her company Thus, option A is correct.
What is a survey?A survey can be defined as an opinion poll that is being taken by a group of people. this group of people can ah be at a random or from a prescribed category. This generally wants the Opinions of what the individual thinks of a particular situation.
As Kacey needs to add flavor to the granola bar she takes a market survey. This suggests that no she has a market research analyst position in which the market and its requirements incorporate it.
Therefore, option A is the correct option.
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________ is a business strategy in which a company purchases its upstream suppliers to ensure that its essential supplies are available as soon as the company needs them.
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Vertical integration is a business strategy in which a company purchases its upstream suppliers to ensure that its essential supplies are available as soon as the company needs them.
Vertical integration is a method that permits a corporation to streamline its operations by taking direct ownership of numerous levels of its manufacturing procedure rather than counting on external contractors or providers.
Vertical integration entails acquiring or developing one or more important elements of an agency's production method or supply chain. For instance, Netflix's shift from licensing indicates and movies from foremost studios to producing its personal original content material is an example of vertical integration.
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if a firm has no ability to select the price of its product, it: group of answer choices has a horizontal individual demand curve. will go out of business due to losses. is a price-maker. cannot maximize profit.
Answers
A firm cannot maximize profit if it lacks the capacity to set the price of its product.
What is maximizing profit?Profit maximization in economics refers to the process through which a business determines the pricing, input, and production levels that will result in the maximum feasible total profit in the short or long run. The firm is supposed to be a "rational actor" seeking to maximize total profit, which is defined as the difference between total revenue and total cost.
Measuring total cost and total revenue is sometimes impossible because enterprises lack the required trustworthy information to assess costs at all stages of production. Instead, they take a more pragmatic approach, investigating how minor changes in production affect revenues and expenses. When a company manufactures an extra unit of a product, the additional income earned from selling it is known as the marginal revenue (MR), and the additional cost to manufacture that unit is known as the marginal cost (MC). The firm's total profit is considered to be maximized when the level of output is such that the marginal revenue equals the marginal cost (MR=MC).
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Strong job satisfaction, greater task motivation, and better social integration at work all tend to be traits associated with __________.
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Strong job satisfaction, greater task motivation, and better social integration at work all tend to be traits associated with Internal locus of control.
What is motivation?
Motivation is the reason why humans and other animals begin, continue, or discontinue a behaviour at any given time. Motivational states are commonly understood as internal forces that create a desire to engage in goal-directed behaviour. It is commonly held that various mental states compete with one another and that only the strongest state determines behaviour. This means we can be motivated to do something but not actually do it. Desire is the paradigmatic mental state that provides motivation. However, other states, such as beliefs about what one should do or intentions, can provide motivation. The term "motivation" is derived from the word "motive," which refers to a person's needs, desires, wants, or urges. It is the process of persuading people to act in order to achieve a goal.
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for a sales-type lease, a. the sales price includes the present value of the unguaranteed residual value. b. the present value of the guaranteed residual value is deducted to determine the cost of goods sold. c. the gross profit will be the same whether the residual value is guaranteed or guaranteed. d. none of these answers are correct.
Answers
The correct option is c. This means for the sales-type lease gross profit will be the same whether the residual value is guaranteed or guaranteed.
A finance lease in which the market rate value of the principal asset is not equivalent to its cost, resulting in a selling profit or loss, is referred to as a sales-type lease from the perspective of a lessor. An unguaranteed residual value, the current value of lease payments calculated using the implied interest rate, and the present value of the sales-type lease are recorded by the lessor as their net investment in lease at the lease's commencement date. It is recorded as a selling profit or loss if the market worth of the underlying asset exceed the carrying amount.
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