At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under a seven-year operating lease agreement. The contract calls for quarterly rent payments of $25,000 each. The office building was acquired by Lakeside at a cost of $2 million and was expected to have a useful life of 25 years with no residual value. What will be the effect of the lease on Lakeside’s earnings for the first year (ignore taxes)?
Answers
Answer:
The effect is an increase in net earnings of $20,000.
Explanation:
As in the above, the effect on Lakeside's earning is calculated on cost/benefit basis.
Costs are incurred annually due to getting the office space through depreciation deduction while benefit is for annual lease rentals.
Yearly rentals is $25,000 × 4 = $100,000
Yearly depreciation is $2,000,000 ÷ 25=$80,000
Increase in earnings is therefore ;
$100,000 - $80,000 = $20,000
Due to the above, it is evident that earnings would increase meaning that acquiring the office space and the leasing the office space to a lesse was not a profitable deal.
Related Questions
Using the data, calculate the percentage change in quantity demanded following a £3 increase in the price
of salt pipes. You are advised to show your working,
Answers
Answer:
idk sry
Explanation:
TRUE OR FALSE: A mathematics professor at a university would fall under both the Education and Training career cluster and the STEM career cluster.
Answers
Explanation: none
What is a group of individuals and organizations that direct the flow of products from producers to customers within the supply chain?
Answers
A marketing channel is a collection of people and institutions that controls the supply chain's movement of goods from manufacturers to consumers.
Marketing channel is a group of individuals and organizations that direct the flow of products from producers to customers within the supply chain.
What is a marketing channel?
A marketing channel, or channel of distribution, may be a gather of people and organizations that coordinates the stream of items from makers to clients. The major part of marketing channels is to form products accessible at the correct time, at the correct put, and within the right sums. In most channels of distribution, makers and shoppers are connected by promoting mediators, as a rule wholesalers and/or retailers. Marketing channels too shape a supply chain, which alludes to long-term associations among channel individuals working together to diminish wasteful aspects, costs, and redundancies. Marketing channels make time, put, and ownership utility by making items accessible when and where clients need them and giving clients with get to to item utilize through deal or rental.To know more about Marketing channel visit:
https://brainly.com/question/14301893
#SPJ4
.3. One day you happen to hear a snippet of conversation between two graduate students, who are drinking coffee and contemplating an open box of exquisitely delicious chocolate truffles in the Page Break Café. The first student opines that one can definitely outline a set of objective design principles that should underpin the construction of any professional chart or map. The second student disagrees vehemently and argues that the one and only important thing to worry about is aesthetics. The first student is speechless. What do you think? Use your knowledge of data visualization to inform your answer, and be sure to explain your answer carefully.
Answers
The debate between the two graduate students revolves around the importance of objective design principles versus aesthetics in the construction of professional charts or maps.
Objective design principles in data visualization serve as guidelines to ensure clarity, accuracy, and effective communication of information. These principles include considerations such as appropriate use of colors, legibility of text, proper labeling, and accurate representation of data. By adhering to these principles, charts and maps can convey the intended message clearly, facilitating data comprehension and analysis.
However, aesthetics cannot be disregarded. Visual appeal and aesthetics contribute to the overall user experience and can enhance engagement with the data. An aesthetically pleasing chart or map can captivate the viewer's attention, stimulate interest, and encourage exploration of the data. Attention to aesthetics involves aspects such as visual balance, appropriate use of visuals and typography, and overall design coherence.
Both objective design principles and aesthetics are important in data visualization because they serve different purposes. Objective design principles ensure accuracy and effective communication, while aesthetics enhance engagement and user experience. Striking a balance between these two aspects is crucial to create visually appealing and informative visualizations that effectively convey the intended message while engaging the audience.
Learn more about aesthetics from here:
https://brainly.com/question/1335816
#SPJ11
True or false: mean-variance analysis suggests that investments with lower average returns are also associated with higher risks.
Answers
True.
Mean-variance analysis suggests that investments with lower average returns are generally associated with lower risks. This analysis is a framework used in modern portfolio theory to optimize investment decisions by considering both the expected return and the associated risk of different investment options.
According to mean-variance analysis, an investor seeks to maximize their expected return for a given level of risk or minimize their risk for a given level of expected return. The analysis assumes that investors are risk-averse and prefer investments that offer higher returns with lower volatility.
Therefore, investments with lower average returns are often considered less risky as they exhibit lower volatility and provide more stable returns over time. However, it is important to note that this is a general principle and specific investments may have unique risk-return profiles that deviate from this trend.
Learn more about investments here: brainly.com/question/30105963
#SPJ11
Which of the following individuals would be considered unemployed when calculating the unemployment rate?
Answers
The unemployment rate is a statistics which shows the percentage of the labor force that are with a job in an economy in a given period of time
The individuals which would be considered as unemployed when calculating the unemployment rate includes:
People who are jobless.Individuals looking for a job.Individuals who available for work but are unemployed.The unemployment rate are used government to make important economic decision.
Learn more about this here
brainly.com/question/17246197
Answer:
A 22-year-old teacher who recently lost his job and is currently looking for a new one
Explanation:
Individuals that are retired, under the age of 16, or currently employed are not considered when calculating the unemployment rate.
Hope this helps!
Make an appointment to meet with the manager of an auto repair shop that uses standards. In most cases, this would be an auto repair shop that is affiliated with a national chain such as Firestone or Sears or the service department of a new-car dealer.
Required:
At the scheduled meeting, find out the answer to the following question and write a memo to your instructor describing the information obtained during your meeting.
Do the standards and variances create any potential problems?
Answers
The standards and variances may be create potential problems.
What is Standard costing and variance analysis ?
Standard Going is a fashion businesses use to keep track of their costs. It involves setting a" standard" cost for each item or exertion and comparing factual costs to these norms. Standard going can be used to track both direct and circular costs.Friction analysis is a fashion used to compare factual costs to standard costs. This comparison can help directors identify areas where costs are advanced than anticipated and take corrective action if necessary. friction analysis can also assess the impact of price changes, volumes, or other factors on overall cost situations.Standard Going and friction analysis are essential tools for any business trying to control costs. They can help directors identify areas where costs need to be reduced and take action to ameliorate profitability.Standard cost dissonances do when there's a difference between the factual cost of goods vended and the Standard Cost of those same goods. Standard going is an account system that uses destined costs for accoutrements and labor to value force and calculate the cost of goods vended. Friction analysis is also used to compare factual results to the Standard to identify where differences live. Standard cost dissonances can be caused by numerous effects but are generally due to changes in material prices, labor rates, or productivity.Make an appointment to meet with the director of an bus form shop that uses norms. In utmost cases, this would be an bus form shop that's combined with a public chain similar as Firestone or Sears or the service department of a new- auto dealer. Required: At the scheduled meeting, find out the answer to the following question and write a memo to your instructor describing the information obtained during your meeting. The standards and variances may be create potential problems.
Learn more about standard and variances here:
https://brainly.com/question/15858152
#SPJ4
How is the housing industry related to the economy? If the economy is doing well, what types of homes are being constructed and purchased? What if the economy is doing badly? Other than housing, what additional industries might the economy impact?
Answers
The housing industry have important relation with the economy because its prices can impact residential investment and thus, affect the economic growth.
What is housing industry?An housing industry is an industry that encompasses building of housing. construction, engaging in commercial housing activities etc.
Generally, when an economy is doing well, it will be favorable to build house of high value as its gives higher confidence in the industry and economy,
Also, the additional industries that impact an economy includes Healthcare, Technology, Retail, Manufacturing industry etc
In conclusion, the housing industry have important relation with the economy because its prices can impact residential investment and thus, affect the economic growth.
Read more about housing industry
brainly.com/question/5053499
name any TWO markets within the four-sector circular flow model
Answers
Answer:
Explanation:
The circular flow model shows the interaction between two groups of economic decision-makers―households and businesses―and two types of economic markets―the market for resources and the market for goods and services.
The practice of combining the price of several products into one price is called
A.bundling.
B.unit packaging.
C.market mix.
D.product mix.
Answers
Answer:D.product mix.
Explanation:
A country decides to impose a tax to reduce the external cost created by carbon emissions. Prior to the tax,____
and as a result of the tax,_____
A. marginal cost equals marginal benefit, marginal cost will be less than marginal benefit
B. there was no deadweight loss; a market failure occurs because taxes reduce production
C. market failure occurred; the deadweight loss is reduced
D. market failure occurred producer surplus will equal consumer surplus
E. producer surplus equals consumer surplus; marginal cost equals marginal benefit
Answers
Answer:
C. market failure occurred; the deadweight loss is reduced
Explanation:
Carbon emissions produce externalities: they affect others not involved in the transaction, in the form of pollution, or in the form of contributions to climate change. Externalities are a form of market failure because in this situation, the market fails to allocate resources in a way that produces the best social benefit (the Pareto Optimum).
To correct the externality, a tax is imposed, this type of tax is known as a Pigouvian tax. The Pigouvian tax reduces the deadweight loss caused by the externality.
average annual return to investor who buy the bond at the current price and receives all cash flows from the bond (coupons and face value).
Answers
The average annual return calculated in this manner assumes that the investor reinvests all coupon payments at the YTM rate and holds the bond until maturity. It does not account for potential changes in market interest rates or fluctuations in the bond's price if sold before maturity.
To calculate the average annual return for an investor who buys a bond at the current price and receives all cash flows (coupons and face value), you need to consider the bond's yield to maturity (YTM). The YTM represents the total return an investor would receive if they hold the bond until maturity and reinvest all coupon payments at the YTM rate.
Here's a step-by-step guide to calculating the average annual return:
Determine the cash flows: Identify the cash flows the investor will receive over the bond's lifetime. This typically includes periodic coupon payments and the bond's face value at maturity.Calculate the present value of each cash flow: Use the YTM as the discount rate to calculate the present value of each cash flow. This involves discounting each cash flow back to its present value using the YTM and the time remaining until the cash flow is received.Sum the present values: Add up the present values of all the cash flows to get the total present value.Calculate the average annual return: Divide the total present value by the number of years until maturity to obtain the average annual return.It's important to note that the average annual return calculated in this manner assumes that the investor reinvests all coupon payments at the YTM rate and holds the bond until maturity. It does not account for potential changes in market interest rates or fluctuations in the bond's price if sold before maturity.
Learn more about YTM rate from the given link
https://brainly.com/question/457082
#SPJ11
Quinoa farms just paid a dividend of $2.95 on its stock. the growth rate in dividends is expected to be a constant 3.4 percent per year indefinitely. investors require a return of 15 percent for the first three years, a return of 13 percent for the next three years, and a return of 11 percent thereafter. what is the current share price
Answers
Based on the dividend growth rate and the required return on Quinoa Farms stock over the years, the current share price is $34.93.
What is Quinoa farm's current stock price?This is the sum of the present values of the dividends using the various required returns.
The dividends for the years are:
Year 1:
= 2.95 x ( 1 + 0.034)
= $3.0503
Year 2:
= 3.0503 x ( 1 + 0.034)
= $3.1540
Year 3:
= 3.154 x 1.034
= $3.2612
Year 4:
= 3.2612 x 1.034
= $3.3721
Year 5:
= 3.3721 x 1.034
= $3.4868
Year 6:
= 3.4868 x 1.034
= $3.6053
Year 7:
= 3.6053 x 1.034
= $3.7279
This allows us to calculate the terminal value at year 6:
= 3.7279 / (11% - 3.4%)
= $49.05
The current price is:
= 3.0503 / 1.15 + 3.1540 / 1.15² + 3.2612 / 1.15³ + 3.3721 / (1.15³ x 1.13) + 3.4868 / (1.15³ x 1.13²) + 3.6053 / (1.15³ x 1.13³) + 49.05 / (1.15³ x 1.13³)
= $34.93
Find out more on calculating share price at https://brainly.com/question/14421538.
#SPJ1
is the state of matter with the highest temperature
Answers
Explanation: GAS is the state of matter with the HIGHEST temperature and the LOWEST density.
80% of people starting a business use their own personal savings. What is the advantage to this strategy versus using bank loans and credit cards? A. You control how the money is spent B. You will not pay interest on the capital. C. You do not have any risk of losing your money.
Answers
An advantage of using personal savings instead of bank loans and credit cards is you will not pay interest on the capital. (option B)
What is personal savings?Personal savings is the wealth that a person has accumulated over a period of time. When a person uses his personal savings to start a business, the person would not have to pay interest on the money used in the business because the funds used belongs to the person.
Banks loans and credit cards are subject to interest payment over the duration of the loan. Interest would increase the cost of starting the business. Funds that are gotten either from bank loans or personal savings can be lost if the business is not successful. Also, three is an opportunity cost associated in using the funds for starting a business. Opportunity cost is the cost of the next best option forgone when one option is chosen over other options.
To learn more about interest, please check: https://brainly.com/question/14985150
#SPJ1
Job satisfaction can be lost for all of the following reasons EXCEPT:
a.
Lack of opportunities for promotion
b.
Bickering with co-workers
c.
Being recognized for a job well done
d.
Having little or no say in decisions that affect you
Answers
Answer:
Being recognized for a job well done
Explanation:
broch corporation's income statement appears below: income statement sales (all on account) $ 1,220,000 cost of goods sold 760,000 gross margin 460,000 operating expenses 415,692 net operating income 44,308 interest expense 14,000 net income before taxes 30,308 income taxes (35%) 10,608 net income $ 19,700 the company's times interest earned ratio is closest to: group of answer choices 2.16 3.16 1.41 4.87
Answers
Income Before Interest and Assessments shows the benefit of the organization. This is the company's net income before any interest or income tax costs.
How is the Earnings Before Interest and Tax calculated?Net Income minus interest and taxes is EBIT. The second approach involves subtracting the revenue from the cost of goods sold (COGS) and operating expenses:EBIT is the sum of revenue, COGS, and operating expenses.EBIT is the sum of operating expenses and gross profit.Is EBIT equivalent to pre-tax profit?EBIT. EBIT (earnings before interest and taxes) and PBT (profit before taxes) are both useful indicators of a company's profitability. However, their perspectives on financial outcomes are slightly different. The primary distinction lies in the fact that EBIT does not take into account interest when calculating PBT.
To learn more about Income Before Interest here:
https://brainly.com/question/29348535
#SPJ4
You're given a monthly budget of $400 for social media advertising. You want to set a daily budget for February to insure you don't overspend for the month. What is your daily budget? (It is not a leap year.)
Answers
Answer:
$14.28
Explanation:
you will have a couple of cents left over at the end because you cant evenly divide 400 by 28
An investor sold 100 shares of ran common stock short at $50 per share. the ran is now at $38. the investor is still bearish on the stock but would like to protect that gain. what would you recommend if this were your client
Answers
If the investor is my client, i will advise him to enter a buy stop order at $40.
What is the buy stop order?In the share market, these are protective tool that are mainly for short sellers.
Now, as the stock should begin to rise from its current price of $38, once it reaches or exceeds $40, a buy order at the market is entered.
Hence, the stock purchased is used to cover the short position and the investor's profit is the $50 sale price minus the cost of the purchase.
However, because the investor is short term person, the only protective order would be a buy and not a sell.
Therefore, i will advise him to enter a buy stop order at $40
Read more about buy stop order
brainly.com/question/14206094
#SPJ1
Part II: Elastic or Inelastic?
Instructions: Determine whether the demand for the following items is price clastic or inelastic,
Write your answer on the line after the item. Then write the reasons for your answer.
A. Salt
Why?
B. New cars
Why?
C. Pork chops
Why?
D. European vacation
Why?
E. Insulin
Why?
F. Insulin at one of four drug
stores in a shopping mall
Why?
G. Gasoline purchased one day
after a 20 percent price increase
Why?
I
HL Gasoline purchased one year
after a 20 percent price increase
Why?
Answers
a. The demand for salt is price inelastic. This is because salt is considered a necessity in making meals.
b. The demand for new cars is price elastic. This is because there are many substitutes for new cars. For example, the bus is a substitute for a new car.
c. The demand for pork chops is price elastic. This is because there are many other types of foods that can be consumed instead of pork chops.
d. The demand for European vacation is price elastic. This is because vacations are not a necessity; they are a luxury.
e. The demand for Insulin is price inelastic. This is because insulin is very important to a diabetic patient
f. The demand for Insulin at one of four drug stores in a shopping mall is price inelastic. This is because consumers have choices between the four drug stores in the mall
g. The demand for gasoline purchased one day after a 20 percent price increase is price inelastic. This is because in the short run, consumers do not have enough time to search for suitable substitutes, so demand would be inelastic
h. The demand for gasoline purchased one year after a 20 percent price increase is price elastic. This is because in the long run, consumers would have enough time to find suitable substitutes.
Demand is price elastic if the quantity demanded of a good is sensitive to small changes in the price of the good
Demand is considered inelastic if the quantity demanded of a good is less sensitive to changes in the price of a good.
Factors that affect the price elasticity of demand
Time frame: demand is inelastic in the short run because consumers would not have enough time to find cheaper substitutes. In the long run, demand is elastic because consumers would have enough time to search for substitutes. Number of close substitutes : If there are many substitutes for a good, the demand for the good would be elastic. If there are no close substitutes, the demand for the good would be inelastic Nature of the good: if the good is considered a necessity, the demand for the good would be inelastic and if the good is considered a luxury, the demand for the good would be inelastic.To learn more about elasticity of demand, please check: https://brainly.com/question/14897348?referrer=searchResults
In pure competition, producers compete exclusively on the basis of
a. selling identical items.
b. advertising heavily to promote their good.
c. producing the unique features of their good.
d. focusing on maintaining a positive image.
Answers
Answer:
a. selling identical items.
Explanation:
A pure competition market is characterized by many firms selling a homogeneous product in a market with many buyers. There are no dominant suppliers; hence no single or group of sellers can influence the price. Pure competition is also the perfect competition.
The key characteristics of pure competition are
There are many buyers and sellersAll firms sell an identical productAll sellers are price takers. None can influence pricesThere is intense competition due to the high number of sellersEase of entry and exit from the market.A. selling identical items.
The labor supply curve:
Multiple Choice
shows the relationship between the total quantity of labor supplied by all firmsin the economy and the wage rate.
shows that, all things being equal, more workers will want to work when wages are higher and less will want to work when wages are lower.
has a negative slope.
All of these are true.
Answers
All of the given statements are true about the Labor Supply Curve.
The labor supply curve shows the relationship between the total quantity of labor supplied by all firms in the economy and the wage rate, all things being equal, more workers will want to work when wages are higher, and fewer will want to work when wages are lower, and has a negative slope.
A labor supply curve is a graphical representation of the amount of labor supplied at each wage rate, holding all other variables constant. The labor supply curve reflects the trade-offs between work and leisure in the labor market. The higher the wage rate, the more desirable it becomes for workers to work, implying that the opportunity cost of leisure time has increased. Labor supply curves slope downward because workers' opportunity costs rise as the wage rate increases. In the short term, workers will often take additional hours and work overtime to earn extra money. However, over the long term, they may be willing to work fewer hours if the wage rate is high enough to compensate them for their lost leisure time.Learn more about Labor Supply curve; https://brainly.com/question/31256551
#SPJ11
A tire manufacturer has recently discovered that numerous lots of tires
produced at one of their plants over recent months used a defective synthetic
material. The result was that these tires are far too likely to rupture at much
lower air pressure levels than normal. This has led to many accidents,
including some fatalities. The company has not been able to determine why
the material was defective. Which of the following is likely to be true in this
situation?
O A. The manufacturer as a company will be liable to pay significant
amounts of money to those harmed by the defective tires.
O B. Because it is not clear why the material is defective, the
manufacturing company themselves cannot be held responsible.
C. If the company can recall all defective tires as soon as it has
discovered its fault, it will not be held liable for the accidents that
already took place.
O D. The company is obligated to find the individual responsible for the
defective material so that he or she can be punished.
Answers
Answer:
A. The Manufacturer
Explanation:
A PEXXX
Which career is likely to earn the highest salary?
a) Hairdresser
b)Dentist
c)News Anchor
d)Flight attendant
Answers
Answer:
b.) Dentist
Explanation:
Hope it helps!
Explain the basic assumption of economics with respect to rational self-interest. Describe two detailed real-life examples applying the assumption.
Answers
When making economic decisions, economists make assumptions in order to better understand how consumers' and businesses' behaviour.
To assist explain how an economy works and how to maximise growth, income, and employment, there are numerous economic theories.
However, preferences—that is, what companies and customers like to have or prefer to avoid—are central to many ideas. Additionally, the assumptions frequently concern the resources that are or are not readily available to meet the demands and preferences. The decisions that individuals involved in an economy make are significantly influenced by the availability or scarcity of resources.
Learn the rationale behind economists' assumptions and how they affect economic models.
When making economic decisions, economists make assumptions in order to better understand how consumers' and businesses' or economic behaviour.
Economists They use assumptions in order to build a model that they can control because they are unable to isolate certain factors in the real world.
Learn more about economic behaviour hear :
https://brainly.com/question/15073240
#SPJ9
a purpose of advertising is to make the: group of answer choices demand for one's product more inelastic. demand for one's product less inelastic. market closer to perfectly competitive. demand for one's product more elastic.
Answers
A purpose of advertising is to make the demand for one's product more elastic. Advertising of product or also services will make a demand more higher than normal.
In economic and business, Advertising generally can be defined as an industry used to call the attention of the public to something, typically a product or service. In the advertising activities, each of activities has a purpose to make product, brand or service is promoted to a viewership in order to attract interest, engagement, and sales. There are several types of advertising, such as Display Advertising, Video Advertising, Mobile Advertising, and also Native Advertising.
Here you can learn more about advertising https://brainly.com/question/3163475
#SPJ4
What makes sure that the aesthetic and functional aspects of the button work in the context of the rest of the product
Answers
Answer:
User experience design
Explanation:
“User Experience Design (UXD or UED) is a design process whose sole objective is to design a system that offers a great experience to its users. Thus UXD embraces the theories of a number of disciplines such as user interface design, usability, accessibility, information architecture, and Human Computer Interaction.
Can I please get help on this it is do today please!!!!!
Answers
2.guest house
3.lodging
4.hotel
5.motel
ithinkso
which statement best describes the sec rules relating to bookkeeping services? a. bookkeeping services are permitted if the individuals performing these services do not also perform the audit
Answers
The statement best describes the SEC rules relating to bookkeeping services is an accountant generally cannot provide bookkeeping services to an SEC audit client.
The practice of regularly documenting your company's financial activities into arranged accounts is known as bookkeeping. It may also be used to describe the many recording methods that companies may employ.
A bookkeeper will make sure that all of a company's accounts are correct and current. Additionally, they will periodically report on those accounts so the owners and management are aware of their financial situation. Additionally, tidy accounts make it simple for accountants to intervene and handle their duties at the conclusion of the financial year.
To track income and spending as effectively as possible, a corporation must employ three different forms of accounting. Cost, management, and financial accounting are some of them.
The given question is incomplete, the complete question is:
Which statement best describes the SEC rules relating to bookkeeping services?
a. Bookkeeping services are permitted, as long as the individuals performing these services are not the same individuals performing the audit.
b. Bookkeeping services are permitted if the fees from these services are insignificant relative to the audit fees.
c. Bookkeeping services are permitted if the client agrees in writing to accept responsibility for the adequacy of these services.
d. An accountant generally cannot provide bookkeeping services to an SEC audit client.
To know more about Bookkeeping Services here
https://brainly.com/question/11865844
#SPJ4
Composed of several major parts of the fingernail including the nail plate, 10 points
nail bed, matrix, cuticle, eponychium, hyponychium, specialized
ligaments, and nail fold. Together all of these parts form the
Nail unit
Nail bed
Nail plate
lunula
Answers
Answer:
Nail Unit
Explanation: