On December 31, 2018, Perry Corporation leased equipment to Admiral Company for a five-year period.
The annual lease payment, excluding nonlease components, is $42,000.
The interest rate for this lease is 11%.
The payments are due on December 31 of each year.
The first payment was made on December 31, 2018.
The normal cash price for this type of equipment is $155,000 while the cost to Perry was $134,000.
For the year ended December 31, 2018, by what amount will Perry's earnings increased due to this lease (ignore taxes) ?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On December 31, 2018, Perry Corporation leased equipment to Admiral Company for a five-year period. The annual lease payment, excluding ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
What does it mean when you have demand for a good or service a. you can afford the good but may be unwilling to buy it. b. you want the good but may not have the money for it. c. you are able to buy the good but not at the given price d.
Answers (1)
Because of radical changes to modern business practice, theoretical perspectives of management provide a historical context but unfortunately do not enhance understanding of the present. a) trueb) false
Answers (1)
What natural resources does a farmer use and protect while growing his or her crop?
Answers (1)
Which of the following is an example of economic investment? Volvo buys an old factory building from General Motors. Nike buys a new machine that increases shoe production. Bill Gates buys shares of stock in IBM. Warren Buffet buys U. S.
Answers (1)
A health and beauty company is developing a new line of hand lotions for very dry skin. they expect the research and development stage to take 10 years and cost approximately $12.8 million.
Answers (1)
New Questions in Business
A manager demonstrates when he listens carefully to his subordinates and works to build trusting relationships.
Answers (1)
On March 1, 2017, Boyd Company acquired real estate, on which it planned to construct a small office building, by paying $80,000 in cash.
Answers (1)
A. Assume that the risk-free rate is 8 percent, the required rate of return on the market (or an average-risk stock) is 13 percent, and the required rate of return on Acme Healthcare stock is 15 percent.
Answers (1)
taxes: a. are unlikely to affect market supply and demand b. are copmulsory payments to governments c. never affect efficiency in the allocation of resourcesd. are voluntary payments to governments
Answers (1)
Mycenaean Greece became more powerful after a. creating trade networks with Egypt b. war with Persia. c. destruction of Crete d. political consolidation in. the Dark Ages
Answers (1)