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:
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “At January 1, 2019, Alpha leased restaurant equipment from Spring Corporation under a six-year lease agreement in a finance lease. The ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
On the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7% bonds to finance its operations of producing and selling home improvement products. Interest is payable semi-annually.
Answers (1)
A sugar company that is worried that consumers may buy artificial sweetener instead of sugar is concerned about the A. bargaining power of buyers. B. bargaining power of suppliers. C. rivalry among existing firms. D. threat of new entrants. E.
Answers (1)
A firm purchased 50 units of materials with a unit price of $1.30 on June 1. On June 15, the firm purchased 50 units with a unit price of $1.20.
Answers (1)
Krier Industries has just completed its sales forecasts and its marketing department estimates that the company will sell 48,000 units during the upcoming year.
Answers (1)
Which of these conditions is most likely to exist in a recession or a depression? A. More production B. More income and spending C. More unemployment D. Higher inflation
Answers (1)
New Questions in Business
Select the correct answer Zoe realizes that employee productivity has dropped over the past few months. She realizes there is a need for employee motivation at her company.
Answers (1)
Which of these describes how a fixed-rate mortgage works? The property taxes on a fixed-rate mortgage never get any higher The purchase price of the house never goes up with a fixed rate mortgage The monthly payment of a fixed rate mortgage never
Answers (1)
When state farm uses consumer research to create a mental map of consumers that indicates that consumers perceive state farm as conservative, safe, responsive, and convenient, they are interested in subliminal perceptions?
Answers (1)
A woman who can neither speak nor read English purchases a stereo system from a local electronics store. Although the stereo is advertised for $450, the store owners charge the woman $10,000. A court would most likely consider this transaction:
Answers (1)
Suppose that the total production of an economy consists of 4 oranges and 10 candy bars, each orange sells for $0.25, and each candy bar sells for $0.50. What is the market value of production in this economy?
Answers (1)