Geary Co. leased a machine to Dains Co. Assume the lease payments were made on the basis that the residual value was guaranteed and Geary gets to recognize all the profits. At the end of the lease term, before the lessee transfers the asset to the lessor, the leased asset and obligation accounts have the following balances:
Leased equipment $400,000
Less accumulated depreciation--capital lease 384,000
$ 16,000
Interest payable $ 1,520
Lease liability 14,480
$16,000
If, at the end of the lease, the fair value of the residual value is $9,800, what gain or loss should Geary record?
a. $4,680 gain
b. $8,280 loss
c. $6,200 loss
d. $9,800 gain

Answers

Answer 1

Answer:

c. $6,200 loss

Explanation:

Calculating the gain or loss Geary should record:

Gain or loss = Fair value of residual value - Value of leased equipment

Gain or loss = $9,800 - $16,000

Loss = $6,200

So, the loss that Geary should record is $6,200.


Related Questions

If a bank had demand deposits of $50 million and it faced a 25 percent reserve requirement, it would be required to have how many reserves

Answers

Answer:

$12.5 million

Explanation:

The computation of the number of reserves required is shown below:

= Demand deposits × reserve requirement

= $50 million × 25%

= $12.5 million

We simply applied the demand deposits with the reserve requirement so that the number of reserve required could come

The Rogers Corporation has a gross profit of $784,000 and $314,000 in depreciation expense. The Evans Corporation also has $784,000 in gross profit, with $48,900 in depreciation expense. Selling and administrative expense is $200,000 for each company.

Required:
a. Given that the tax rate is 40 percent, compute the cash flow for both companies.
b. Calculate the difference in cash flow between the two firms.

Answers

Answer:

Particulars                                        Rogers           Evans

Gross profit                                     784,000        784,000

(-) Selling and admin expenses     (200,000)     (200,000)

(-) Depreciation                               (314,000)       (48,900)

EBT                                                   270,000       535,100

(-) Taxes at 40%                              (108,000)       (214,040)

EAT                                                   162,000        321,060

(+) Depreciation                                314,000        48,900

Cash flows                                        476,000       369,960

Difference in cash flows = $476,000 - $369,960

Difference in cash flows = $ 106,040

Janine is considering what auto costs she is going to have after buying a new Honda Civic. She has budgeted enough money for the monthly auto loan payment, gas, and auto insurance. Has Janine factored in all of the costs associated with car ownership

Answers

Answer:

No. Janine has not factored in all of the costs usually associated with car ownership.

Explanation:

Other costs associated with the ownership of a car like a new Honda Civic that Janine is considering buying are: maintenance, license and registration, loan finance charges, and depreciation costs.  These costs can drastically reduce Janine's monthly purchasing power and ability to save.  The costs of owning a new Honda Civic should be compared to the cost of not owning one now vis-a-vis Janine income.

Choose the correct statements below regarding the transfer of financial assets such as receivables:
I. In a transfer of receivables without recourse, the transferee obtains the right to compensation from the transferor for customer accounts that prove to be uncollectible.
II. In a transfer which qualifies as a secured borrowing, the transferor will record a liability for the amount borrowed.
III. Under otherwise identical conditions, a transferor will generally pay a higher commission percentage on a receivable sold with recourse versus one sold without recourse.
a. I and III only.
b. II only.
c. I, II and III.
d. III only.

Answers

Answer:

The correct statement regarding the transfer of financial assets such as receivables:

b. II only.

Explanation:

The transfer is not regarded as payment for the debt.  Therefore, a liability is recorded for the amount borrowed while the financial asset remains in the records of the transferor until the final settlement.  Appropriate disclosures are made in the transferor's financial statements about the security on the financial assets.

what is the positive impact of Commerce subject on our society?​

Answers

Answer:

E-commerce facilitates the fundamental movement of goods from suppliers to customers. They offer an ideal commerce development to do digital business and improve the global presence. E-commerce has altered the workflow of the business

At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $366,000 and Total Liabilities of $28,300 and Total Paid-in capital of $113,200. During the year, the company reported total revenues of $435,000 and expenses of $336,500. Also, dividends during the year totaled $86,000. Assuming no other changes to Retained earnings, the balance in the Retained earnings account at the end of the year would be:

Answers

Answer:

I don't really know

Explanation:

I have absolutely no clue. good luck.

Determine the net present value for a project that costs $84,500 and would yield after-tax cash flows of $13,000 the first year, $15,000 the second year, $18,000 the third year, $20,000 the fourth year, $24,000 the fifth year, and $30,000 the sixth year. Your firm's cost of capital is 5.00%.

Answers

Answer:

The net present value for the project is $14,680.61.

Explanation:

The net present value (NPV) of a project is the sum of the present values of all the after-tax cash flows minus the cost of the project. This can be calculated as follows:

NPV = (First year after-tax cash flows / (100% + Cost of capital)^1) + (Second year after-tax cash flows / (100% + Cost of capital)^2) + (Third year after-tax cash flows / (100% + Cost of capital)^3) + (Fourth year after-tax cash flows / (100% + Cost of capital)^4) + (Fifth year after-tax cash flows / (100% + Cost of capital)^5) + (Sixth year after-tax cash flows / (100% + Cost of capital)^6) - Project cost

NPV = ($13,000 / (100% + 5.00%)^1) + ($15,000/ (100% + 5.00%)^2) + ($18,000 / (100% + 5.00%)^3) + ($20,000 / (100% + 5.00%)^4) + ($24,000 / (100% + 5.00%)^5) + ($30,000 / (100% + 5.00%)^6) - $84,500

NPV = $14,680.61

Therefore, the net present value for the project is $14,680.61.

The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows:
Year Investment Cash Inflow
1 15000 1000
2 8000 2000
3 2500
4 4000
5 5000
6 6000
7 5000
8 4000
9 3000
10 2000
Determine the payback period of the investment. (Round up your answer to the next whole number.)

Answers

Answer:

6.50 Years

Explanation:

The computation of the  payback period of the investment is shown below;

Total cash outflow is

= $15,000 + $8,000

= $23,000

Now the Cash Inflow in all 6 years is

= $1,000 + $2,000 + $2,500 + $4,000 + $5,000 + $6,000

= $20,500

Cash inflow in Year 7 is $5,000.

But Cumulative Cash flows from Year 1 to Year 7 is

= $20,500 + $5,000

= $26,500

This amount is more than Initial Investment  i.e. $23,000.

So our Payback period is between 6 & 7 years i.e.  

= 6 + ($23,000 - $20,500) ÷ 5000

= 6.50 Years

what is variable cost per unit


Answers

Variable costs are the costs that change in total each time an additional unit is produced or sold. With a variable cost, the per unit cost stays the same, but the more units produced or sold, the higher the total cost. ... Although total fixed costs are constant, the fixed cost per unit changes with the number of units.
The total variable cost increases and decreases based on the activity level, but the variable cost per unit remains constant with respect to the activity level.

On February 3, Smart Company sold merchandise in the amount of $2,700 to Truman Company, with credit terms of 1/10, n/30. The cost of the items sold is $1,865. Smart uses the perpetual inventory system and the gross method. Truman pays the invoice on February 8, and takes the appropriate discount. The journal entry that Smart makes on February 8 is:

Answers

Answer:

Journal entry on February 8 :

Debit  : Cash $2,673

Debit  : Discount received $27

Credit : Account Receivable $2,700

Explanation:

The journal entry that Smart makes on February should show the Cash payment net of cash discount, a decrease in Total Account Receivable balance and recognition of an expense discount allowed up to 1 %.

A plot of land close to the beach could earn its owners $300/day as a parking lot or $500/day as a campground. Calculate the weekly economic rent of using the land as a campground.

Answers

Answer:

Weekly economic earning = $1400

Explanation:

Below is the calculation of weekly economic rent:

Given the earn at the parking lot = $300/day

Earning as a campground = $500/ day

Now, in order to find the economic rent just subtract the earning from the parking from the earning of the campground.

Economic earning  = 500 - 300

Economic earning = $200

Now, weekly economic earning = $200 x 7

Weekly economic earning = $1400

Crane Company makes and sells umbrellas. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available: Variable Cost Per Unit Sold Monthly Fixed Cost Sales commissions $0.60 $ 4000 Shipping 1.20 Advertising 0.30 Executive salaries 30000 Depreciation on office equipment 7000 Other 0.35 18000 Expenses are paid in the month incurred. If the company has budgeted to sell 6000 umbrellas in October, how much is the total budgeted variable selling and administrative expenses for October?

Answers

Answer:

$14,700

Explanation:

Calculation to determine how much is the total budgeted variable selling and administrative expenses for October

Using this formula

Total budget variable selling and administrative =(Sales commissions+Shipping+Advertising+Other)*Budgeted umbrellas

Let plug in the formula

Total budget variable selling and administrative = ($0.60 + 1.20 + 0.30 + 0.35)*6,000

Total budget variable selling and administrative= $2.45*6,000

Total budget variable selling and administrative= $14,700

Therefore the total budgeted variable selling and administrative expenses for October is $14,700

Firm A and Firm B have debt-total asset ratios of 34 percent and 24 percent and returns on total assets of 10 percent and 15 percent, respectively. What is the return on equity for Firm A and Firm B

Answers

Answer:

3.4%

3.6%

Explanation:

Return on equity is an example of a profitability ratio.

Profitability ratios measure the ability of a firm to generate profits from its asset

return on the stockholders' equity = net income / total equity

ROE = return on asset x leverage

Firm A = 0.34 x 0.1 = 3.4%

Firm B = 0.24 X 0.15 = 3.6%

What are some items that you like to buy or wish you could buy?

Answers

Answer:

computer or brainly plus

In order to buy something you need enough money. I would buy something useful that I can still afford. Something like an sd card is something I've needed for a long time...

What is the health insurance program that requires recipients to fall within a certain income bracket

Answers

Answer:

Medicaid

Explanation:

The Affordable Care Act (ACA) was formally known as the Patient Protection and Affordable Care Act (Obamacare). It is a federal statute of the United States of America which was enacted by the 111th US Congress and signed into law by President Barack Obama. The Affordable Care Act (ACA) became effective on the 23rd of March, 2010 and it focused on making affordable health insurance available to qualified people or households through cost-sharing reductions and premium tax credits (subsidies).

Medicaid is a collaborative health program of the federal and state government which was established to provide effective and efficient health coverage to the citizens of the United States of America.

Medicaid is the health insurance program that generally requires recipients or beneficiaries to fall within a certain income bracket as a form of eligibility for health care.

Every year businesses lose thousands of dollars from employee theft. Business owners put a lot of trust in employees to care and maintain equipment and supplies. Employees are expected to utilize equipment and supplies for business purposes only. What is lost when employees take advantage of the benefits of employment

Answers

Answer:

Loss of confidential/product informationLoss of Time :  Loss of moneyLoss of company property

Explanation:

When employees take advantage of the benefits of employment which includes access to company's/employer's assets and the indulge in what is known as employee theft ( misuse of company's assets ), The losses that the company might experience will include some or all of the following :

Loss of confidential/product informationLoss of Time : this is when company pays the employees for work time that they did not put in Loss of moneyLoss of company property

g Brokaw Industries signs a $40,000, 9%, 6-month note payable on September 1, 2021. How much interest expense will Brokaw report in its 2022 financial statements

Answers

Answer:

$600

Explanation:

Calculation to determine How much interest expense will Brokaw report in its 2022 financial statements

Based on the information given they will have to incur two months of interest expense which is January and February since four months went by in 2021 starting from September to December

Now let calculate the interest expense

Interest expense =$40,000 x .09 x 2/12

Interest expense =$600

Therefore the amount of interest expense that Brokaw will report in its 2022 financial statements is $609

$600

The Boston Consulting Group (BCG) has given specific names and descriptions to the four resulting quadrants in its growth-share matrix based on the amount of cash they generate for or require from the organization. Stars are SBUs that are classified as having

Answers

Answer:

Stars are companies that possibly have a huge growth potential. This potential comes from being in a market that is growing rapidly, but at the same time, the division or products has a significant market share. It is basically the best scenario since the market is growing, the company's market share is growing, and profits should also be growing.

Describe a master budget and the sequence in which the individual budgets within the master budget are prepared.

Answers

Answer:

The production budget is needed to figure out direct materials, direct labor and manufacturing overhead budgets. Once these are all done, then comes the finished goods inventory budget. Once all of these budgets are done, we can do a cash budget, income statement and balance sheet to finish off the process.

Explanation:

thank me later

The Nathan's Company rents numerous properties throughout the year. Nathan's pays rents in advance in some cases, and in other cases rents are paid after the rental period expires. The following data are included in Nathan's December 31 balance sheets:
2015 2016
Prepaid rents. 70000 30000
Rents payable. 50000 35000
During 2016 nathan paid 200000 in rentals in its accrual basis income statement for the year ended dec 31 2016 nathan should report rent expense of:_____.
a. 225000.
b. 200000.
c. 145000.
d. 175000.

Answers

Answer:

b that is the answer hahahahah

You bought a bond five years ago for $804 per bond. The bond is now selling for $770. It also paid $55 in interest per year, which you reinvested in the bond. Calculate the realized rate of return earned on this bond. (Do not round intermediate calculations. Round your percentage answer to 2 decimal places. (e.g., 32.16))

Answers

Answer:

the rate of return is 6.09%

Explanation:

the computation of the realized rate of return earned on this bond is shown below:

Given that

NPER is 5

PMT is $55

PV is $804

FV is $770

The formula is shown below:

=RATE(NPER,PMT,-PV,FV,TYPE)

After applying the above formula, the rate of return is 6.09%

Hana owns a bakery in a small coastal town in the Pacific Northwest. She greatly enjoys the process of baking, especially the feelings of relaxation and creativity she has when mixing ingredients and working by the warm oven on cold days. She also feels very pleased when customers purchase her pies, and she makes enough money to pay her bills and save a little each month, which is important to her. What type(s) of reward(s) motivate(s) Hana's baking

Answers

Answer: Both intrinsic and extrinsic reward

Explanation:

Intrinsic motivation is when we do things simply because we find it enjoyable and we don't need any external reward for it. Since, Hana greatly enjoys the process of baking, especially the feelings of relaxation and creativity, this is an intrinsic reward.

On the other hand, extrinsic motivation occurs when one expects an external reward. Since, Hana feels very pleased when customers purchase her pies, and she makes enough money to pay her bills and save a little each month, she's extrinsically motivated.

Therefore, the answer is Both intrinsic and extrinsic reward.

Y3K, Inc., has sales of $6,329, total assets of $2,945, and a debt-equity ratio of 1.40. If its return on equity is 14 percent, what is its net income

Answers

Answer:

See below

Explanation:

The computation of net income is shown below:

ROE = Profit margin × Total asset turnover × Equity multiplier (Assets / Equity)

ROE = Profit margin × (Sales / total assets) × (1 + debt equity ratio)

14% = Profit margin × ($6,320 ÷ $2,945) × (1 + 1.40)

bookworm publishers requires an ending cash balance of at least 5,000 and can b orrow from a line of credit in 1000 increments. How much cash does bookwork publishers need to borrow for october

Answers

Answer: $8,000

Explanation:

Find the cash balance at the end of October.

Cash disbursement:

= Direct Materials Cash Disbursements + Direct Labor Cash Disbursements + MOH Cash Disbursements + Operating Expenses Cash Disbursements + Capital Expenditures Cash Disbursements

= 62,000 + 45,000 + 43,000 + 85,000 + 125,000

= $360,000

Cash receipts:

= Opening balance + Expected cash collections

= 7,000 + 350,000

= $357,000

Cash balance :

= Cash receipts - Cash disbursement

= 357,000 - 360,000

= -$3,000

The cash balance needs to be at least $5,000, they need to borrow:

= Amount needed - Cash balance

= 5,000 - (-3,000)

= 5,000 + 3,000

= $8,000

Clay and Maryanna own a house together, which they decide to sell for $200,000. The two decide to split the proceeds according to the ratio of money that each invested in the property. Clay put in the most money at a ratio of 5:3. How much money should Maryanna get from the sale

Answers

Answer:

The answer is "[tex]\$75,000[/tex]"

Explanation:

Convert the ratio to several fractions first. Its first half of such a ratio is measured by multiplying two sides (Clays 5 + Maryanne's 3 pieces = 8 total parts) combined, to determine the numerator, and the very first part of the ratio is maintained as a numberer of the factions (5 parts, Clay contribution). Therefore Clay made a significant donation of [tex]\frac{ 5}{8}[/tex], which's also [tex]\frac{3}{8}[/tex] of Maryanna[tex](\frac{8}{8}-\frac{5}{8}=\frac{3}{8})[/tex] donated.

[tex]\to \$75,000 \times \frac{3}{8}\\\\\to \$200,000[/tex]

In Fontainebleau Hotel v. Eden Roc, the Eden Roc Hotel sued the Fontainebleau Hotel when Fontainebleau began erecting a 14-story addition to its premises that Eden Roc claimed blocked air and sunlight from its pool and sunbathing areas. The court determined that

Answers

Answer:

The answer is "The structure could be constructed when it is helpful and beneficial, even if it is partially constructed to deliberately damage the plaintiff ".

Explanation:

As court decided for Beau because although Eden Roc has incurred from the interruption of free air and daylight development, this does not do so because the building fulfills a useful or valued need, but because it is harmed by only a regulation. Whether Eden Roc had been decided by the Supreme, future property gains would've been impeded.

It is held throughout all places that, in which a framework encounters a useful and profit-giving need, there is no legal right to free advance of light and air from the bordering country, for neither damage nor even a guideline under the saying sics utere tuo ut extra - terrestrial non-leads, even though the structure damages by trying to remove fresh air and interfering to vi.

he appropriate discount rate for the following cash flows is 8 percent compounded quarterly. Year Cash Flow 1 $700 2 700 3 0 4 1,100 What is the present value of the cash flows

Answers

Answer:

Thus, the present value is $2045.52.

Explanation:

Use the below formula to find the present value:

Present value = FV ÷ (1 + r/4)^(n*4)

Present value :

[tex]=\frac{700}{(1 + \frac{0.08}{4} )^{1 \times 4} } + \frac{700}{(1 + \frac{0.08}{4} )^{2 \times 4} } + \frac{0}{(1 + \frac{0.08}{4} )^{3 \times 4} } +\frac{1100}{(1 + \frac{0.08}{4} )^{4 \times 4} } \\ \\= \frac{700}{1.0824}+\frac{700}{1.1716} +0+\frac{1100}{1.3727} \\= 2045.52[/tex]

Thus, the present value is $2045.52.

The following transactions occurred during July: Received $930 cash for services provided to a customer during July. Issued common stock for $2,600 cash. Received $780 from a customer in partial payment of his account receivable which arose from sales in June. Provided services to a customer on credit, $405. Borrowed $6,300 from the bank by signing a promissory note. Received $1,280 cash from a customer for services to be performed next year. What was the amount of revenue for July

Answers

Answer:

the amount of revenue for the july month is $1,335

Explanation:

The computation of the amount of revenue for the july month is shown below:;

= Cash received from the service provided to the customer + provided the service to the customer on credit basis

= $930 + $405

= $1,335

Hence, the amount of revenue for the july month is $1,335

The same would be relevant

A company receives $290, of which $15 is for sales tax. The journal entry to record the sale would include a

Answers

Answer:

Explanation:

Cash.         290

     Revenue.             275

     Sales tax payable.  15

Loki Revengers has expected sales of $650 million a year. Variable costs are expected to be 65 percent of sales and fixed operating costs are $200000000 a year. Total capital is presently $500000000 and must be expanded to $700000000 to generate the anticipated sales level. The company presently has no debt outstanding, and 2670000 shares of stock. Additional common stock could be sold for $150 a share. The interest rate on new debt would be 6 percent and the tax rate is 21 percent.

Required:
Compute the return on equity and earnings per share assuming the expansion is financed.

Answers

Answer:

the return on equity and the earning per share is 3.104% and $5.43 respectively

Explanation:

The computation of the return on equity and the earning per share is shown below:

Return on equity is

=($650 × (1 - 65%) - $200) × (1 - 21%) ÷ (700)

= 3.104%

Now  

Earning Per Share is

= ($650 × (1 - 65%) - $200) × (1 - 21%) × 10^6 ÷ (2670000 + 200 × 10^6 ÷ 150)

= $5.4267

Hence, the return on equity and the earning per share is 3.104% and $5.43 respectively

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