Questions
Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Kingbird Company....

Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Kingbird Company. The following information relates to this agreement.

1. The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years.
2. The fair value of the asset at January 1, 2020, is $75,000.
3. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $8,000, none of which is guaranteed.
4. The agreement requires equal annual rental payments of $23,522.48 to the lessor, beginning on January 1, 2020.
5. The lessee’s incremental borrowing rate is 5%. The lessor’s implicit rate is 4% and is unknown to the lessee.
6. Kingbird uses the straight-line depreciation method for all equipment.


Click here to view factor tables.

Prepare all of the journal entries for the lessee for 2020 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee’s annual accounting period ends on December 31. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round answers to 2 decimal places, e.g. 5,265.25. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date

Account Titles and Explanation

Debit

Credit

1/1/2012/31/20

enter an account title To record the lease on January 1 2020

enter a debit amount

enter a credit amount

enter an account title To record the lease on January 1 2020

enter a debit amount

enter a credit amount

(To record the lease)

1/1/2012/31/20

enter an account title To record lease liability on January 1 2020

enter a debit amount

enter a credit amount

enter an account title To record lease liability on January 1 2020

enter a debit amount

enter a credit amount

(To record lease liability)

1/1/2012/31/20

enter an account title for the journal entry on December 31 2020

enter a debit amount

enter a credit amount

enter an account title for the journal entry on December 31 2020

enter a debit amount

enter a credit amount

enter an account title for the journal entry on December 31 2020

enter a debit amount

enter a credit amount

In: Accounting

1. Offer some reasons that a company might choose to merge with or acquire another company....

1. Offer some reasons that a company might choose to merge with or acquire another company.

2. Discuss some of the implications of overpaying for an acquired company?

In: Finance

What is the difference between the physician assistant and the medical assistant? List three types of...

What is the difference between the physician assistant and the medical assistant? List three types of technologists and technician who provide diagnostic testing. What types of services are provided by physical, occupational, and respiratory therapists? What professionals provide care in emergency situations? What services are provided by dentists, optometrists, chiropractors, podiatrists, and dietitians/nutritionists? What activities are performed by the health information manager? List three activities performed by billing and coding specialists. Define health administration. Differentiate among a general practitioner, a nurse practitioner, and a physician assistant. What accounts for the difference in their compensation? Do you believe the use of assistants and aides impacts the quality of care? Differentiate among the MBA, MPH, and MHA. What accounts for the differences in these degrees? Should clinical and non-clinical professionals be cross trained? Would this improve either the level of patient care of the efficiency of the business?

In: Nursing

Suppose marijuana has just been legalized in your state. Nobody in your home town wants to...

Suppose marijuana has just been legalized in your state. Nobody in your home town wants to start a marijuana business, as this would be too much of a stigma. But being an MBA student, you know a good business opportunity when you see one and decide to take a stab. Shortly after starting up your business, you gain a loyal following of customers and start raking in some steep profits. However, the local government decides that they want a cut of your profits and starts charging a 20% sales tax on marijuana. Do you think this would lead to a 20% or greater loss in sales? Do you think marijuana in this situation would be facing inelastic or elastic demand? Explain your reasoning, and make sure to cite at least one of the required readings regarding elasticity.

In: Economics

Topic: Productivity cost and contingent market valuation. Suppose the faith-based organization has three leaders: - a...

Topic: Productivity cost and contingent market valuation.

Suppose the faith-based organization has three leaders:

- a 52 year old, African American male physician in private practice who also holds a PhD;

- a 29 year old Native American female lawyer also holds and MBA and who works for a large firm that specializes in medical malpractice claims; and

- a 38 year old, Caucasian male with an MA in art history who works as cook at a local restaurant. Suppose that each of them uses their free time to be a group leader at the faith- based organization. Each person spends three hours a week as a group leader.

Question: ​​​How would the Panel on Cost-Effectiveness in Health and Medicine put a value on each person’s time? Note that this is the inputs taken into consideration rather than actual amounts.

In: Economics

Maureen owns all of the stock in Green Corporation. Green owns 10,000 shares of Micro Corporation,...

Maureen owns all of the stock in Green Corporation. Green owns 10,000 shares of Micro Corporation, whose value has increased by 1000% since they were purchased eight years ago. Maureen would like to have the shares distributed to her, but she wants to avoid the tax bill that would result if they were distributed as a dividend from Green Corporation. Her son, who is taking classes for his MBA, has suggested that she create Brown Corporation with herself as the sole shareholder, and have Green transfer the stock to Brown. Following this, Brown could be liquidated, and she would receive the Micro stock in return for her shares of Brown. This would achieve capital gains treatment for Maureen. Maureen is your client. What advice would you give her about this proposed transaction, and what authorities would you cite?

In: Accounting

Discussion Question 9-8 (LO. 5, 10) Jamie has an undergraduate degree in finance and is employed...

Discussion Question 9-8 (LO. 5, 10)

Jamie has an undergraduate degree in finance and is employed full-time by a bank. She is taking courses at a local university leading to an MBA degree.

a. Based on the reasons for the taking courses listed below, identify for Jamie whether the associated costs are "Deductible" or "Nondeductible".

It is to maintain or improve existing skills required in her present job.
It is to meet the minimum educational standards for qualification in her existing job.
It is to qualify her for a new trade or business.
It is to meet the express requirements of her employer or the requirements imposed by law to retain her employment status.

b. Complete the statement below outlining the limitations imposed on the deduction.

Assume that Jamie is a single filer with an MAGI of $64,000.

Click here to view § 222 Deduction Amounts.

deductible for AGI and deducted from AGI as an itemized deduction which subject to the 2%-of-AGI limitation.

In: Accounting

Social media is considered an important marketing communication channel. and it's a crucial element of a...

Social media is considered an important marketing communication channel. and it's a crucial element of a company's branding strategy. In the past few years, there has been a shift from text-centric to visually-oriented experiences in social media platforms. Business-to-consumer, or B2C, companies like CompanyOne leverage social media platforms—mostly Facebook, Twitter, Instagram, YouTube, and Pinterest—to target and engage their customers. I also want you to recommend two social media platforms, including those listed here,

discuss how CompanyOne can leverage them to enhance its branding strategy.”

Contribute your thoughts in the Slate, Inc.’s project team discussion area, and discuss your ideas with your team members.

Include 2 references one is a scholar and one nonscholary.

Class MBA 640. University of Maryland Global Campus.

Business Admistration.

In: Operations Management

Shrieves Casting Company is considering adding a new line to its product mix, and the capital...

Shrieves Casting Company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by Sidney Johnson, a recently graduated MBA. The cost of new machinery for the new product line would be $644,000. The machinery has economic life of eight years, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the machine. The new line would generate incremental sales of 70,000 units per year at variable cost per unit of $21 and fixed cost of $725,000 per year. Each unit can be sold for $37 in the first year. The sale price and cost are both expected to remain the same. The firm’s tax rate is 35 percent, and the rate of return required for this type of investment is 15 percent. Calculate the base-case cash flow and NPV.

In: Finance

F owned 51% of the voting common stock of S. the parent’s interest was acquired several...

F owned 51% of the voting common stock of S. the parent’s interest was acquired several years ago on the date that the subsidiary was formed. Consequently, no goodwill or other allocation was recorded in connection with the acquisition price. On January 1, 2017 S sold $1,400,000 in ten-year bonds to the public at 106. The bonds pay a 10% interest rate every December 31. F acquired 40% of these bonds on the open January 1, 2018, for 96% of the face value. Both companies utilize the straight-line method of amortization. Prepare the consolidation entry in connection with these intra-entity bonds on December 31, 2018.

In: Accounting