At january 1, 2019, alpha leased restaurant equipment from spring corporation under a six-year lease agreement in a finance lease. the lease agreement specifies annual payments of $20,000 beginning january 1, 2019, the beginning of the lease, and at each december 31 thereafter through 2023. the equipment was acquired recently by spring at a cost of $120,000 and was expected to have a useful life of eight years with no salvage value at the end of its life. spring seeks a 5% return on its lease investments. the total decrease in earnings (pretax) in alpha december 31, 2019, income statement would be:

The vaska company buys a patent on january 1, year one, and agrees to pay $100,000 per year for the next five years. the first payment is made immediately, and the payments are made on each january 1 thereafter. if a reasonable annual interest rate is 8 percent, what is the recorded value of the patent? 1. $378,4252. $431,2133. $468,9504. $500,000

Jennifer purchased a house in a brand new development in the outskirts of town. when her house was built, the nearest fire department was nearly 20 miles away. as her neighborhood developed, the density of the community called for a new fire department 1.5 miles away. what effect will the new fire station have on her homeowners insurance premium? a. a new fire department will be more demanding on local taxes. her annual premium will go up. b. the location of a fire department has no bearing on the value of her house. her annual premium will stay the same. c. the new fire department will reduce the risk of financial loss in her home. her annual premium should decrease. d. with a fire department so close (less than 5 miles), financial risk on jennifer’s home practically disappears. she will not need to pay insurance anymore.

What is the equity method balance in the investment in lindman account at the end of 2018?