Because this property is normally sold, the lessee (Royal) must report it as a sales-type lease. 3. If the machine has an expected life of five years, then both parties must report the transaction as a capital lease. 4. If the lease contract gives Royal the option to buy the machine at the end of four years, then both parties must report the transaction as a capital lease 28.
Question 24 Europa Corporation is financing an ongoing construction project. The firm will need $5,000,000 of new capital during each of the next 3 years. The firm has a choice of issuing new debt or equity each year as the funds are needed, or issue only debt now and equity later. Its target capital structure is 40% debt and 60% equity, and it wants to be at that structure in 3 years, when the project has been completed. Debt flotation costs for a single debt issue would be 1.6% of the gross debt proceeds.
Although Wendy mailed the check on December 30, the funds were not made readily available to Larry until January 2. For this reason, Larry will not include the rental amount in his gross income until the next year. The payment was due to Larry on December 31, but he had no way of knowing when the money was readily available or mailed by Wendy, therefore, he cannot include that amount until he receives the check. Alternative B FACTS Both Larry and Wendy are calendar-year, cash method taxpayers. The lease requires an annual rental of $2,000, due in arrears on December 31.
Watson's product requires 30 minutes of direct labor time. Each hour of direct labor costs $7. Instructions: a. Rounding computations to the nearest dollar, prepare the following for January through March: 1) Sales budget 2) Schedule of cash
The current liabilities are what is owed and is expected to be paid off on one year. The long term liabilities are what are owed for a longer period of time that may include interest. • What were the company’s revenues (or net revenues) for the last 3 annual reporting
Each of three vice presidents has rendered a separate and distinct strategic initiative, and they are “Introduce a new product”, “Increase promotion”, and “Raise prices and cut costs” respectively. However, only one of these alternatives can be implemented next year because of issue of management time. As a financial analyst, I will analyze quantitative and qualitative factors of the three alternatives and compare pros and cons among them. “Introduce a new product”
Contracts 616, Assignment # 11, Lopez, #4521 Courier v. Furniture Co Preliminary Negotiations Preliminary negotiations are merely an invitation to a deal. In January, Courier and Furniture Co negotiated an agreement under which Courier would promise to provide services for three years. Offer An offer is an outward manifestation of present contractual intent, with definite and certain terms, and which is communicated to the offeree. Courier drafted an agreement embodying the agreed terms and, on March 1, 2012, sent two copies to Furniture Co. Acceptance An acceptance is unequivocal assent to the terms of the offer.
Theory to practice Week 4 1. At what point, if ever, did the parties have a contract? The parties had an oral contract three days before the expiration of the 90-day period; both parties reached an oral distribution agreement at a meeting. 2. What facts may weigh in favor of or against Chou in terms of the parties’ objective intent to contract?
On March 31, 2011, Mary borrowed $200,000 to buy her principal residence. Mary paid 3 points to reduce her interest rate from 6 percent to 5 percent. The loan is for a 30-year period. What is Mary's 2011 deduction for her points paid? A.
Before going on board we all had to create a passport, when that was good to go, we were all set to get on the boat and sail. This trip took approximately 3 weeks to get to the New York Harbour destination. The boat was content with food, however it was packed with hundreds of families which made it hard