Nelson Co. will record depreciation expense of $10,000 per year for the building and will recognize lease revenue of $275,000 per year. Wise Inc. will record rent expense of $275,000 per year.
To determine the accounting treatment for this lease, we need to first determine whether it is an operating lease or a finance lease. A finance lease is one where the risks and rewards of ownership are transferred to the lessee, while an operating lease is one where the lessor retains the risks and rewards of ownership.
To determine whether this lease is a finance lease or an operating lease, we need to consider whether any of the following criteria are met:
Transfer of ownership: Does the lease transfer ownership of the building to Wise Inc. by the end of the lease term? Since there is no option for Wise Inc. to purchase the building at the end of the lease, this criterion is not met.
Bargain purchase option: Does the lease include a bargain purchase option that Wise Inc. is reasonably certain to exercise? Since there is no option for Wise Inc. to purchase the building at the end of the lease, this criterion is not met.
Lease term: Is the lease term for a major part of the remaining economic life of the building? Since the lease term is for 10 years and the economic life of the building is 50 years, this criterion is met.
Present value of lease payments: Do the lease payments represent substantially all of the fair value of the building? To determine this, we need to calculate the present value of the lease payments using Wise Inc.'s incremental borrowing rate of 8%. The present value of the lease payments is calculated as follows:
PV of lease payments = $275,000 x PV factor for 10 years at 8%
= $275,000 x 6.7101
= $1,849,527
The fair value of the building is $4,000,000. Since the present value of the lease payments is less than 50% of the fair value of the building ($1,849,527 / $4,000,000 = 0.4624), this criterion is not met.
Since only one of the four criteria is met, this lease is an operating lease. Therefore, Nelson Co. will continue to record the building as an asset on its balance sheet and will recognize lease revenue on a straight-line basis over the lease term. Wise Inc. will record lease payments as rent expense on a straight-line basis over the lease term.
The annual straight-line depreciation expense for the building is calculated as follows:
Depreciation expense = (Cost - Residual value) / Useful life
= ($4,000,000 - $3,500,000) / 50 years
= $10,000 per year.
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What phrase could a licensee use in advertising that would not discriminate on the basis of familial status
Senior discount is the phrase that a licensee could use in advertising that would not discriminate.
A familial status discrimination is known to occurs when the landlord, manager or property owner treats someone very differently.
The other options clearly discriminate the familial status.
Hence, the Senior discount is the phrase that a licensee could use in advertising that would not discriminate.
Therefore, the Option is correct.
Missing options "Couples only Empty nesters No bicycles allowed Senior discount"
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Nina has just started a new job and has already been late several times. She
gets everything done within the day, but she just can't seem to be on time.
What should Nina address?
A. Honesty
B. Respect for diversity
C. Integrity
D. Punctuality
Answer:
D
Explanation:
A p e x
: Regarding workplace health and safety, orientation is a good time to make employees aware of what? their rights and responsibilities
their duties their risks their obligations
Orientation is a good time to inform employees about their rights, responsibilities, duties, risks, and obligations in relation to workplace health and safety.
During the orientation process, new employees are introduced to the organization's policies, procedures, and expectations. It is crucial to make them aware of their rights, such as the right to a safe work environment, and their responsibilities, such as following safety protocols and reporting hazards.
Employees also need to understand their duties, which may include participating in safety training and using protective equipment correctly. Additionally, orientation is an opportune moment to highlight the risks associated with their specific roles or the workplace as a whole.
Finally, employees should be informed of their obligations, such as complying with health and safety regulations and actively contributing to maintaining a safe work environment.
By addressing these aspects during orientation, organizations can establish a strong foundation of knowledge and commitment to workplace health and safety among their employees.
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For a manager who is unable to create an organizational culture, what is the central cultural issue the manager faces? O How to change the current organizational culture How to change employees to fit the culture the manager wants to create How best to use the existing cultural system
If a manager is unable to create an organizational culture, the central cultural issue the manager faces is how best to use the existing cultural system. The manager must assess the current culture and identify its strengths and weaknesses.
What is the main cultural problem a management faces if they are unable to develop an organisational culture?Once the manager understands the existing culture, they can work to leverage its strengths to achieve their goals. This may involve identifying cultural ambassadors within the organization who can help promote the desired culture.
The manager may also need to address any negative aspects of the existing culture that are hindering progress. Ultimately, the goal is to create a positive and productive organizational culture that aligns with the manager's vision and goals.
This may involve incremental changes over time or a more radical shift, depending on the situation. However, changing employees to fit the culture the manager wants to create may not be the most effective approach, as it is often difficult to change people's values and beliefs.
Instead, the focus should be on shaping the cultural context in which employees operate, so that they can thrive and contribute to the organization's success.
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Complete question: For a manager who is unable to create an organizational culture, what is the central cultural issue the manager faces?
How to change the current organizational culture
How to change employees to fit the culture the manager wants to create
How best to use the existing cultural system
Lee Ray bought 250 shares of a mutual fund with a NAV of $13.85. This fund also has a load charge of 7%.
a. What is the offer price? (Round your intermediate and final answer to the nearest cent.)
b. What did Lee pay for his investment? (Round your intermediate and final answer to the nearest cent.)
Answer: a. $14.9
b. $3725
Explanation:
a. What is the offer price?
This will be calculated as:
= NAV / (1 - load charge %)
= 13.85 / (1 - 7%)
= 13.85 / (1 - 0.07)
= 13.85 / (0.93)
= $14.9
B. What did Lee pay for his investment?
This will be:
= Number of shares bought × Offer price
= 250 × $14.9
= $3725
Laura says that the present value of $700 to be received one year from today if the interest rate is 6 percent is less than the present value of $700 to be received two years from today if the interest rate is 3 percent. Cassie says that $700 saved for one year at 6 percent interest has a smaller future value than $700 saved for two years at 3 percent interest.
A) Both Laura and Cassie are correct.
B) Both Laura and Cassie are incorrect.
C) Only Laura is correct.
D) Only Cassie is correct.
Answer:
The correct answer is A. Both Laura and Cassie are correct.
Explanation:
Since Laura says that the present value of $ 700 to be received one year from today if the interest rate is 6 percent is less than the present value of $ 700 to be received two years from today if the interest rate is 3 percent, and Cassie says that $ 700 saved for one year at 6 percent interest has a smaller future value than $ 700 saved for two years at 3 percent interest, to determine who is right, the following calculations must be performed:
700 x 1.06 = 742
700 x 1.03 ^ 2 = 742.63
Therefore, both Laura and Cassie are correct in their claims.
What should you do after attending a college fair?
A. Make a folder for each college.
B. Read the materials once you have decided which college you want
to attend.
C. Throw away everything you received at the fair except the
guidebooks
D. Store all the information you collected in your closet and don't look
at it until you're ready to apply to college.
Answer:
B and AExplanation:
both of them are good things to do but B is better.Hope this helps you :)
Which mynav module serves as the source for sales and delivery content, assets, and intellectual property across industries?
The mynav module that serves as the source for sales and delivery content, assets, and intellectual property across industries is: Accenture mynav.
What is Accenture myNav?Accenture myNav is a platform that enables a company or an organization to choose their cloud architecture.
Accenture myNav is important for companies as it serve as an intellectual property across industries.
Therefore Accenture mynav module that serves as the source for sales and delivery content.
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2. If a new alternative fuel was found in the auto industry, what are the two ways existing car manufacturers might respond to this disruptive innovation?
Existing car manufacturers might respond to a disruptive innovation in the auto industry in two ways:
Incorporate the new alternative fuel technology into their current product offerings: Existing car manufacturers might invest in research and development to incorporate the new alternative fuel technology into their current product offerings. This would allow them to continue to compete in the market with a new and innovative product that meets changing customer needs and preferences.
Create a new product line: Existing car manufacturers might also choose to create a new product line specifically designed to use the new alternative fuel technology. This would allow them to maintain their existing product offerings while also capturing new market share with the innovative product line.
Ultimately, the response of existing car manufacturers to a disruptive innovation in the auto industry would depend on their individual business strategies and goals, as well as the potential impact of the new technology on their existing products and customer base.
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a budget that is based on more than one amount of sales or other activity measure is called a:
A budget that is based on more than one amount of sales or other activity measure is called a flexible budget.
A flexible budget is a budget that adjusts or flexes based on changes in activity level. This type of budget is particularly useful for businesses that experience significant fluctuations in activity levels over the course of a year. For example, a manufacturing company may experience a spike in sales during the holiday season and a slowdown during the summer months.
If the company were to use a static budget, which is based on a single amount of sales, it would be difficult to accurately predict and plan for these fluctuations. However, with a flexible budget, the company can adjust its expenses and revenue projections based on the actual activity level during each period.
The process of creating a flexible budget involves identifying the variable and fixed costs associated with each level of activity. Variable costs are expenses that vary based on the level of activity, such as production materials and labor costs. Fixed costs are expenses that remain the same regardless of the level of activity, such as rent and insurance.
Overall, a flexible budget allows businesses to be more responsive to changes in their environment and make better decisions based on real-time data. By creating a budget that is based on multiple levels of activity, businesses can better manage their resources and improve their financial performance over time.
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According to Crown ATM Network, the mean ATM withdrawal is $67. Assume that the standard deviation is $35.
a) Do you think the variable "ATM withdrawal" is normally distributed? If not, what shape would you expect the variable to have?
b) If a random sample of 50 ATM withdrawals is obtained, describe the sampling distribution of x?, the mean withdrawal amount.
c) Determine the probability of obtaining a sample mean withdrawal amount between $70 and $75
The sampling distribution of the mean ATM withdrawal is normal, with a mean of $67 and a standard error of $4.95.
a) It is reasonable to assume that the variable "ATM withdrawal" is normally distributed since it is a continuous variable and the mean and standard deviation are given.
b) The sampling distribution of x, the mean withdrawal amount, would be normally distributed with a mean of $67 and a standard deviation of $5 ($35/sqrt(50)) according to the Central Limit Theorem.
c) To determine the probability of obtaining a sample mean withdrawal amount between $70 and $75, we need to calculate the z-scores for each of these values using the formula \(z = (x - μ) / (σ / sqrt(n))\), where x is the sample mean, \(μ\) is the population mean, σ is the population standard deviation, and n is the sample size.
For x = $70, z = (70 - 67) / (35 / sqrt(50)) = 1.17
For x = $75, z = (75 - 67) / (35 / sqrt(50)) = 2.53
Using a standard normal distribution table or a calculator, we can find the probabilities associated with these z-scores:
P(z < 1.17) = 0.879
P(z < 2.53) = 0.994
Therefore, the probability of obtaining a sample mean withdrawal amount between $70 and $75 is P(1.17 < z < 2.53) = P(z < 2.53) - P(z < 1.17) = 0.994 - 0.879 = 0.115 or 11.5%.
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choose four reasons why proper planning during the development of any information system is important.
Proper planning during the development of any information system is important for a variety of reasons.
The first reason is to ensure that the system is created with the user's needs in mind. When the application is designed with the users in mind, it can be tailored to their specific needs and make it easier for them to use. Secondly, proper planning can help to ensure that the system meets the specific requirements of the organization. By taking the time to properly plan out the system and determine the necessary components and features, the organization can ensure that the system meets their needs and is not missing any vital components. Third, proper planning can help to reduce the cost of development and implementation. By properly planning the system before development begins, the organization can avoid costly mistakes and unnecessary features. Finally, proper planning can reduce the amount of work necessary for maintenance and upgrades. By ensuring that the system is designed to be easily maintained and upgradeable, the organization can save time and money in the long run.
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we use photodiodes to track our orientation relative to the sun. briefly describe a possible signal chain from a photodiode to a microcontroller.
A possible signal chain from a photodiode to a microcontroller can involve several stages to convert the photodiode's analog output into a digital signal that can be processed by the microcontroller.
Here's a brief description of the signal chain:
Photodiode: The photodiode is a semiconductor device that generates a current proportional to the amount of light falling on it. It acts as a light sensor and converts incident light into an electrical signal.
Transimpedance Amplifier (TIA): The output current from the photodiode is typically very small. To amplify this current into a measurable voltage, a transimpedance amplifier is commonly used. The TIA converts the current from the photodiode into a voltage signal, with the gain of the amplifier being determined by the feedback resistor connected to the amplifier's input.
Signal Conditioning: Depending on the specific requirements and characteristics of the photodiode, additional signal conditioning circuitry may be employed. This could include filters to remove unwanted noise or interference, amplifiers for further gain adjustment, or voltage regulators to ensure stable power supply for the circuit.
Analog-to-Digital Converter (ADC): The analog voltage signal from the previous stages needs to be converted into a digital format for processing by the microcontroller. An ADC is used to sample the analog signal and convert it into a discrete digital representation.
Microcontroller: The digital signal output from the ADC is then fed into the microcontroller. The microcontroller is a programmable device that can process the digital data and perform various calculations or make decisions based on the received information.
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On january 1, lorna pays $36,000 of rent in advance. the effects of this transaction are to?
Lorna makes an advance rent payment of $36,000 on January 1. These are the outcomes of this transaction. decreasing cash and increasing rent.
Cash in economics refers to currency in its actual, physical form, such as coins and banknotes.
Cash is defined in bookkeeping and financial accounting as current assets made up of money or money equivalents that may be obtained instantly or almost immediately (as in the case of money market accounts). Cash is viewed as a tool to either prevent a decline in the financial markets or as a reserve for payments, in the event of a structural or accidental negative cash flow.
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going public is complicated and expensive so most companies hire an investment bank to help them with the process. what needs to be completed before going public?…
Figure out how much money to raise
Find private investors
Create a prospectus
Both A and C
Both A and C need to be completed before going public. Companies need to figure out how much money they want to raise and create a prospectus, which is a document that provides information about the company's business and financials to potential investors. The correct option is d.
Before a company goes public, there are several steps that need to be completed. One important step is to figure out how much money the company wants to raise through the initial public offering (IPO). This involves determining the value of the company, the amount of capital needed for growth and expansion, and other factors that may affect the amount of money raised.
Another step is to create a prospectus, which is a legal document that describes the company and its financial performance. The prospectus typically includes information about the company's history, products or services, management team, financial statements, and risks associated with investing in the company.
Private investors may also be involved in the process of going public, but they are not necessarily required. Some companies may choose to raise money from private investors before the IPO to help prepare for the public offering. However, this is not always the case.
Overall, going public is a complex and expensive process that requires careful planning and execution. Hiring an investment bank can help companies navigate the process and ensure a successful IPO.
The correct option is d.
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Engineering Chiefs, a large U.S.-based mechanical engineering firm, wants to enter the global market.
Upon careful analysis of the market, they will find that global trade
(1 point)
A. opportunities are diminishing.
B. is dominated by emerging, developing countries.
C. is likely to be severely restricted in the future by nontariff trade barriers.
D. is big business today and is expected to be more important in the future.
Answer:
D. is big business today and is expected to be more important in the future.
Explanation:
Advancement in technology, improved logistics and transports networks, and cooperation between countries are some of the reasons making international trade grow exponentially. The flow of people and commodities across borders is much faster and easier in modern times. Many countries also have liberalized their economies, resulting in fewer restrictions on imports and exports.
Due to these reasons, international trade has become very competitive. The quantities and value of international trade are increasing and will continue to grow. The interdependence of firms in and countries mean that international trade will remain important.
The International Finance Corporation (IFC) performs which of the following functions? a. Provide loans and take equity position in private companies of developing countries and works toward developing capital markets in those economies b. Supports reconstruction and restructuring of member countries utilizing funds raised in international capital markets c. Provides long-term low-interest social sector and infrastructure loans to the poorest members utilizing foreign aid funds provided by rich nation members d. Works on issues related to foreign investment disputes e. Provides political risk coverage for private investments made in developing countries
Answer:
a). Provide loans and take an equity position in private companies of developing countries and works toward developing capital markets in those economies.
Explanation:
The key functions of IFC(International Finance Corporation) include 'offering loans and getting a hold on the equity stand in the private sector companies established in developing countries in order to build capital in such economies.' It also assists these countries in attaining sustainable growth and development by providing these financial fundings, deploying capital effectively, and proffering counseling services to these nations and the private businesses running across the country. Thus, option a is the correct answer.
When a movie trailer is released far in advance of the release of the movie itself, what marketing concept is
MOST likely being used?
push marketing
content
hype
buzz
Answer:
it's either hype or buzz
Answer: hype
Explanation:
You own a mobile Taco Truck. You have a short list of competitors. Which TWO would be considered your Indirect Competition?
Select 2 correct answer(s)
A.) Mobile Fish and Chips Truck
B.) A local Taco Bell franchise
C.) Walk-up Mexican Food stand
D.) A local Burger King franchise
The two options that could be considered indirect competition for a mobile Taco Truck are (A) Mobile Fish and Chips Truck (C) Walk-up Mexican Food stand
Indirect competition refers to businesses that offer different products or services but still target the same customer base or satisfy similar customer needs. In this case, the Taco Truck, Fish and Chips Truck, and Walk-up Mexican Food stand all fall under the category of mobile food vendors and offer food options to customers.
The Mobile Fish and Chips Truck is an example of indirect competition because it provides a different type of cuisine compared to the Taco Truck. While the Taco Truck focuses on Mexican food, the Fish and Chips Truck specializes in seafood. However, both food trucks target customers who are seeking quick and convenient meals on the go, making them indirect competitors.
Similarly, the Walk-up Mexican Food stand is considered indirect competition because it also offers Mexican food but operates in a different format. Unlike the mobile food trucks, the stand is stationary and doesn't have the mobility aspect. However, it caters to customers looking for Mexican cuisine and offers a similar dining experience to the Taco Truck.
On the other hand, option B (local Taco Bell franchise) and option D (local Burger King franchise) would be considered direct competitors as they both operate in the fast food industry and offer similar types of food as the Taco Truck. These franchises have established brick-and-mortar locations and compete directly with the Taco Truck for customers seeking fast food options.
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In general, a company should enter only segments in which it can ________ and ________.
A) offer lower prices; ship faster
B) offer superior value; gain advantages over competitors
C) offer superior value; ship faster
D) gain advantages over competitors; differentiate its products
E) identify behaviors; understanding spending power
In general, a company should enter only segments in which it can offer superior value and gain advantages over competitors.
Offering superior value means that the company can provide a product or service that is perceived by customers to be of higher quality or to offer more benefits than competing products or services. This can help the company to differentiate itself from competitors and to attract customers.
Gaining advantages over competitors means that the company can compete effectively in the market and achieve a competitive advantage. This can be achieved through factors such as lower costs, better marketing, or superior distribution channels.
By entering segments in which it can offer superior value and gain advantages over competitors, a company is more likely to be successful in the market and to achieve sustainable growth and profitability.:
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Which is a characteristic of judging approach
Answer:
Clarity and Closure
Explanation
Judgers take a planned, ordered, and precisely calibrated approach to life, developing both short- and long-term plans to assist them in achieving their objectives. For them, schedules and "to-do" lists are consoling. They dislike uncertainty and change, preferring to know what they are getting into instead.
Those that have this preference feel more in control of their surroundings. They are disciplined and resolute, seeking resolution as soon as possible to reduce stress. Judgers struggle with open-ended plans because they have a "work first-play later" mentality. Instead of addressing issues as they arise, they would prefer to devise three distinct backup plans.
Judgers take their obligations and deadlines very seriously, both in business and in life. They are quite particular.
The corrections system is vast and costs federal, state, and local governments:a.About $70 billion per year.b.About $115 billion per year
The corrections system in the United States is extensive and has significant financial implications for federal, state, and local governments.
The total annual cost for maintaining this system is approximately $115 billion per year. This figure encompasses various aspects of corrections, including the operation of prisons and jails, probation and parole services, as well as administration and related programs.
The large expense is a result of the high incarceration rate in the United States, which has the largest prison population globally. Factors contributing to the size and cost of the corrections system include mandatory minimum sentencing laws, the war on drugs, and the increasing use of private prisons. These policies have led to a growing demand for resources to maintain the system.
Efforts are being made to address the substantial costs of the corrections system, such as exploring alternatives to incarceration, implementing rehabilitative programs, and revising sentencing policies. By investing in these solutions, governments can potentially reduce the financial burden associated with corrections and promote a more effective and efficient justice system.
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How do customer relationships bridge the gap between the food
and beverage services and customers?
Customer relationships bridge the gap between the food and beverage services and customers by establishing a strong connection and fostering ongoing interactions.
Personalized Service: Building customer relationships allows food and beverage establishments to understand individual preferences, dietary requirements, and special requests. This knowledge enables them to provide personalized service tailored to each customer, creating a sense of value and appreciation.
Effective Communication: Strong customer relationships facilitate effective communication between the service providers and customers. It allows for the exchange of information, feedback, and recommendations, enabling the establishment to better understand and meet customer needs and expectations.
Trust and Confidence: Building trust is essential in the food and beverage industry, where customers rely on the establishment to provide safe and high-quality products. By establishing a positive and reliable relationship, customers feel more confident in the establishment's offerings and are more likely to become repeat customers.
Repeat Business and Customer Loyalty: Positive customer relationships contribute to repeat business and foster customer loyalty. When customers feel valued and appreciated, they are more inclined to return to the establishment for future dining experiences, recommend it to others, and become brand advocates.
Feedback and Continuous Improvement: Strong customer relationships create a conducive environment for receiving feedback. Customers feel comfortable providing their opinions, suggestions, and concerns, which helps the establishment identify areas for improvement and enhance the overall customer experience.
Adaptation to Changing Needs: Customer relationships enable food and beverage establishments to stay attuned to changing customer preferences and trends. By maintaining an ongoing dialogue with customers, establishments can adapt their menus, offerings, and service approaches to meet evolving needs and stay competitive.
Customer relationships are vital for bridging the gap between food and beverage services and customers. By fostering personalized service, effective communication, trust, and loyalty, establishments can create a positive dining experience that encourages repeat business, customer satisfaction, and continuous improvement. Building and nurturing customer relationships is crucial for long-term success in the food and beverage industry.
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To examine
the weekly payroll of all employees, one would look at the:
To examine the weekly payroll of all employees, one would look at the: d. payroll register.
What is the payroll register?The payroll register is a book or record that is used to fill in the details of all the employees and their payment logs. A record of this register is often kept in good condition in case of any future discrepancies that will have to be resolved.
A person who wants to examine the weekly payroll of all employees in an organization must be able to look at the payroll register to know what is obtainable. There, he would find the names of the employees, their job roles and payment record.
Options:
a. W-4
b. employee earnings record
c. W-2
d. payroll register.
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When you are saving or investing, the amount of expected return you receive is based on this:
O Risk Level
O Time
O None of the answers are correct
O Interest
It is Based on The Risk Level.
What would happen if a state or municipality suddenly lost its tax base? Explain if this would have any impact on it's cost of borrowing funds. Why?
Answer:
Following are the responses to the given question:
Explanation:
The tax base seems to be the amount that is added to both the income tax, that is which tax rate is the percentage of national economy collected as just a tax. Consequently, it is important to find an income tax that understands the tax base.
Whether this amount of tax would pay is not declared or decided if the state or city suddenly loses its local economy.
Impact mostly on the cost of credit
Its cost of debt before tax rebate funds = interest amount on the debt – any reduction in income tax which rose because of deductible profits. The costs of lending are real games calculated in anticipation of tax, however, the difference is DEDUCTIBLE in INTEREST EXPENSES.
This tax rate also increases the cost of lending and gives more income protection.
It's because when taxes become available, the company can save money on tax returns as it ultimately removes some profits.
Conclusion:
However it is lost about the tax base, however, the judgment could not be made afterward the amount to borrow as debt could be evaluated of that "TAX REVENUE OFFSET."
The accounting principle that requires revenue to be recorded when goods or services are provided customers and at an a
received from customers is
Answer:
revenue recognition principle
Explanation:
is this what you are looking for?
Dakota earns $8.70 an hour for 37
Per month
hour week. How much is earned per week?
Answer:
$321.90
Explanation:
HELP ASAP which is an example of a short term SMART career goal A i will work for my dad this summer because i dont have a car so he can drive me to work B I will volunteer at the local animal shelter because i need practical experience for vetinary school C I will apply for a job at acme enterprises because they pay the highest hourly wage in town DI want to work with my friends this summer because i wont have the chance to see them when i go to college.
Answer:
The answer is B
Explanation:
It makes more sense, and also the vet job could be a short time, but it is a smart choice. It is a smart choice because it shows that the vet job will help in the future
The table shows the terms of a fixed-rate mortgage.
Which accurately describes the terms of this mortgage? Check all that apply.
The homeowner is borrowing $360,000.
The monthly interest rate is 4 percent.
Monthly payments must be made for 30 years.
The annual interest rate is 4.8 percent.
The homeowner is borrowing $200,000.
Monthly payments must be made for 360 years.
The fixed-rate mortgage concept is used in home loans. Monthly payments for 30 years, the interest rate is 4.8%, and borrowing $200,000.
What is a fixed-rate mortgage?It is usually used in home loans with a fixed interest rate during the term of the loan. It is beneficial because once the rate of interest is fixed it is not influenced by the increase in the rate in the future.
C - Monthly payments for 30 years.
D - The interest rate is 4.8 % annually
E - borrowing $200,000.
Therefore, options C, D, and E explain the fixed-rate mortgage.
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