Business, 26.11.2019 04:31 brandicarney70p8jlsp

An airline has the following data about an airplane:
annual lease cost $8,000,000
lease term: 8 years
useful life of airplane: 35 years
fair market value of leased asset: $83 million
present value of lease payments: $78 million
bargain purchase option: none
transfer to lessor at end of lease? yes
is this a capital or operating lease? why?
a.
this is a capital lease because the leased asset cost exceeds $5 million.
b.
this is a capital lease because the substance of the transaction is a capital lease.
c.
this is a capital lease because it meets at least one of the four capital lease criteria.
d.
this is an operating lease. it fails all of the capital lease criteria.

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 10:30

On july 1, oura corp. made a sale of $ 450,000 to stratus, inc. on account. terms of the sale were 2/10, n/30. stratus makes payment on july 9. oura uses the net method when accounting for sales discounts. ignore cost of goods sold and the reduction of inventory. a. prepare all oura's journal entries. b. what net sales does oura report?

Answers: 2

Answer

Business, 22.06.2019 17:30

Communication comes in various forms. which of the following is considered an old form of communication? a) e-mail b) letter c) skype d) texting

Answers: 2

Answer

Business, 23.06.2019 03:10

He cheyenne hotel in big sky, montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. an occupancy-day represents a room rented out for one day. the hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer. month occupancy- days electrical costs january 1,736 $ 4,127 february 1,904 $ 4,207 march 2,356 $ 5,083 april 960 $ 2,857 may 360 $ 1,871 june 744 $ 2,696 july 2,108 $ 4,670 august 2,406 $ 5,148 september 840 $ 2,691 october 124 $ 1,588 november 720 $ 2,454 december 1,364 $ 3,529 required: 1. using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. (do not round your intermediate calculations. round your variable cost answer to 2 decimal places and fixed cost element answer to nearest whole dollar amount) 2. what other factors other than occupancy-days are likely to affect the variation in electrical costs from month to month? (you may select more than one answer. single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) seasonal factors like winter or summer. systematic factors like guests, switching off fans and lights. number of days present in a month. fixed salary paid to hotel receptionist. income taxes paid on hotel income.

Answers: 2

Answer

Business, 23.06.2019 11:20

Match each business function with its description. operations marketing finance strategy deals with the challenges that a company faces in the ever-changing business environment arrowright deals with debt, stock, and owner’s funds arrowright readies products and services for production and delivers them to the market arrowright deals with finding, targeting, attracting, and connecting with the right customers

Answers: 1

Answer

You know the right answer?

An airline has the following data about an airplane:
annual lease cost $8,000,000
lease...

Questions