The Harris Company is the lessee on a four-year lease with the following payments at the end of each year:

An appropriate discount rate is 7 percentage, yielding a present value of $61,233.

a-1. If the lease is an operating lease, what will be the initial value of the right-of-use asset?
a-2. If the lease is an operating lease, what will be the initial value of the lease liability?
a-3. If the lease is an operating lease, what will be the lease expense shown on the income statement at the end of year 1?
a-4. If the lease is an operating lease, what will be the interest expense shown on the income statement at the end of year 1? (Leave no cells blank – be certain to enter “0” wherever required.)
a-5. If the lease is an operating lease, what will be the amortization expense shown on the income statement at the end of year 1? (Leave no cells blank – be certain to enter “0” wherever required.)
b-1. If the lease is a finance lease, what will be the initial value of the right-of-use asset?
b-2. If the lease is a finance lease, what will be the initial value of the lease liability?

8) The formula for computing overhead for the Texas Company for the year is given as $160,000 + $1.25/direct labor hour. The company produces a single product that requires 2.5 direct labor-hours to complete.

Assume that the company chooses 100,000 direct labor-hours as the denominator level of activity, but actually worked 96,000 hours during the year producing 37,000 units.

Actual overhead costs for the year are:

Variable costs $ 124,800

Fixed costs 158,800

Total overhead costs $ 283,600

Required: (Be sure to indicate whether the variances are favorable or unfavorable.)

a. Compute the variable overhead price variance and the variable overhead efficiency variance.

b. Compute the fixed overhead spending (budget) variance and the production volume variance

please explain the steps and reasoning behind your answer

The answers are a)4375 unfavorable b) 12000 unfavorable .

. You are working on a bid to build two city parks a year for the next three years. This project requires the purchase of $180,000 of equipment that will be depreciated using straight-line depreciation to a zero book value over the 3-year project life. The equipment can be sold at the end of the project for $34,000. You will also need $20,000 in net working capital for the duration of the project. The fixed costs will be $16,000 a year and the variable costs will be $168,000 per park. Your required rate of return is 15 percent and your tax rate is 34 percent. What is the minimal amount you should bid per park?

A. $72,500
B. $128,600
C. $154,300
D. $189,100
E. $217,600

Please give detailed explanation about how to get each value

At the beginning of this year, Brandon Corporation entered into business acquisition. As a result of the acquisition, Brandon reported the following intangible assets:

Patent $480,000

Franchise Agreement $350,000

Copyright $150,000

Goodwill $550,000

Total: $1,530,000

The patent expires in 12 years. The franchise agreement expires in 7 years but can be renewed indefinitely at a minimal cost. The copyright is expected to be sold at the end of 20 years for $30,000. Use the straight-line amortization method to calculate the total carrying value of Brandon's intangible assets at the end of the year.

I’m going to put $100,000 into an investment at the beginning of year 1. At the end of year 3, I am going to add $50,000 more to the investment. In year 4, I will start to remove $20,000 per year (on the first day of the year). If the interest rate on the investment is 8.2%/year (compounded annually), how long (to the nearest year) before the balance in the investment drops to zero?

PLEASE SOLVE BY HAND!

A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per share and sells for $58.

a. What is the total rate of return on the stock? (Enter your answer as a whole percent.)

b. What are the dividend yield and percentage capital gain? (Enter your answers as a whole percent.)

c. Now suppose the year-end stock price after the dividend is paid is $42. What are the dividend yield and percentage capital gain in this case? (Negative amounts should be indicated by a minus sign. Enter your answers as a whole percent.)

d. Is there any change in the dividend yield calculated in parts (b) and (c)?

On December 1 of the current year, the following accounts and their balances appear in the ledger of Latte Corp., a coffee processor:

At the annual stockholders’ meeting on March 31, the board of directors presented a plan for modernizing and expanding plant operations at a cost of approximately $11,000,000. The plan provided (a) that a building, valued at $3,360,000, and the land on which it is located, valued at $945,000, be acquired in accordance with preliminary negotiations by the issuance of 123,000 shares of common stock, (b) that 38,800 shares of the unissued preferred stock be issued through an underwriter, and (c) that the corporation borrow $3,700,000. The plan was approved by the stockholders and accomplished by the following transactions:

Journalize the entries to record the May transactions. Refer to the Chart of Accounts for exact wording of account titles.

Chart of Accounts

Journal

Journalize the entries to record the May transactions. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

The number of floods that occur in a certain region over a given year is a random variable having a Poisson distribution with mean 2, independently from one year to the other. Moreover, the time period (in days) during which the ground is flooded, at the time of an arbitrary flood, is an exponential random variable with mean 5. We assume that the durations of the floods are independent. Using the central limit theorem, calculate (approximately)
(a) the probability that over the course of the next 50 years, there will be at least 80 floods in this region. Assume that we do not need to apply half-unit correction for this question.

(b) the probability that the total time during which the ground will be flooded over the course of the next 50 floods will be smaller than 200 days.

Consider a stock with a beginning of the year price of 21. The stock's dividends and quarterly stock price are as follows:

The effective annual yield on this stock is ____________.

You are offered an investment with returns of $ 1,752 in year 1, $ 4,823 in year 2, and $ 5,748 in year 3. The investment will cost you $ 6,757 today. If the appropriate Cost of Capital (quoted interest rate) is 7.9 %, what is the Profitability Index of the investment? Enter your answer to the nearest .01. Do not use the $ sign or commas in your answer. If the NPV is negative, use the - sign.