Answer:
Debit Interest Expense $17,304.80; credit discount on bonds payable $1,104.8; credit cash $16,200
Interest Expense A/c......................Dr $17,304.80
Discount on bonds payable A/c....Cr $1104.8
To Cash A/c............................Cr $16,200
Explanation:
Given the following :
Bond value = $346,096
Market rate = 10% = 0.1
Contract rate = 9% = 0.09
Par value = $360,000
Note : Semiannual payment = rate / 2
Calculating the cash value and interest expense:
Cash value :
Par value × contract rate
$360,000 × (0.09/2)
$360,000 × 0.045
= $16,200
Interest expense :
Bond value × market rate
$346,096 × (0.1/2)
$346,096 × 0.05
= $17,304.8
Match each concept in Column A with an example in Column B. Column A Column B a. Substitute goods 1. Price and quantity along the supply curve b. A nonprice determinant of demand 2. Tea and coffee c. A nonprice determinant of supply 3. A change in technology d. Mark-up pricing 4. Hunger e. Positive relationship 5. Shoes and shoelaces f. Negative relationship 6. Consumer income g. Inadequacy 7. Price and quantity along the demand curve 24 h. Complementary goods 8. Setting price equal to cost plus 20 percent
Answer:
a. Substitute goods - Tea and coffee
b. A nonprice determinant of demand - Consumer income
C. A nonprice determinant of supply - A change in technology
D. Mark-up pricing - Setting price equal to cost plus 20 percent
E. Positive relationship - Price and quantity along the supply curve
F. Negative relationship - Price and quantity along the demand curve
G. Inadequacy - Hunger
H Complementary goods - Shoes and shoelaces
Explanation:
Substitute goods are goods that can be used in place of another good.
if the price of a good increases, the demand for the substitute increases and if the price of the good reduces, the demand for the substitute increases.
Complementary goods are goods that are consumed together
The demand curve is a curve that shows the relationship between price and quantity demanded. The demand curve is negatively sloped because the higher the price, the lower the quantity demanded. This is in line with the law of demand.
Only a change in the price of a good leads to a movement along the demand curve of that good. Also, only a change in the price of the good would lead to an increase or decrease in the quantity demanded of that good.
Other factors other than the change in the price of the good would lead to a shift of the demand curve. Some of those factors include :
1. a change in consumers' expectation
2. a change in the taste of consumers
3. a change in income
There is a positive relationship between price and the quantity supplied. This accounts for why the supply curve is positively sloped.
A change in price of a good leads to a movement along the supply curve and not a shift of the supply curve.
Other factors other than a change in the price of the good would lead to a shift of the supply curve. Such factors include :
1. A change in the price of input
2. A change in the number of suppliers
3. Government regulations
4. Technological changes
1) help tom to explain to the shareholders of the company the meaning of "free cash flow", its usage and how to use its value to assess a company’s performance.
Free cash flow" refers to the amount of cash a company generates from its operations that is available for distribution to shareholders, debt repayment, or reinvestment in the business.
It is a crucial financial metric used to assess a company's performance and financial health. When explaining to shareholders, Tom can emphasize that free cash flow represents the company's ability to generate cash beyond its necessary expenses and capital investments. It serves as an indicator of financial strength and flexibility. Shareholders can use free cash flow to evaluate the company's ability to pay dividends, reduce debt, invest in growth opportunities, or withstand economic downturns. By analyzing trends in free cash flow over time.
learn more about amount here:
https://brainly.com/question/30270450
#SPJ11
What does GOP mean in America?
A large party One of the two major political parties in the United States, together with the Democratic Party, is the Republican Party, also known as the Grand Old Party (GOP).
The Republican Party opposed the expansion of slavery into the nation's new territories during the 19th century and finally advocated for the outright abolition of slavery. The party became known for its laissez-faire capitalism, low taxation, and conservative social programs during the 20th and 21st centuries. In the 1870s, the party adopted the acronym GOP, which is frequently pronounced "Grand Old Party." The elephant that serves as the party's official symbol was taken from a Thomas Nast cartoon that was created in the 1870s.
Learn more about Grand Old Party here:
https://brainly.com/question/12917446
#SPJ4
Describe the stage of product design
Answer:
Stage 1: hear from others and listen to feedback
Stage 2: Create new ideas based on that feedback
Stage 3: Create several prototypes and choose one. Then test the prototype
Stage 4: Manufacture the prototype you chose
Explanation:
Answer:
~Senpi boi here!~
I would describe the stage of product design as to create an idea to determine product's feasibility to test the product, and then launch the product for customers to buy.
(Hope this helps!)
On January 1, a machine with a useful life of four years and a salvage value of $21000 was purchased for $176000. What is the depreciation expense for year 2 under straight-line depreciation
Depreciation expense for year 2 under straight-line depreciation is $39,250.
Straight-line depreciation is a method of allocating the cost of an asset evenly over its useful life. To calculate the annual depreciation expense, we subtract the salvage value from the purchase price and then divide the result by the useful life. In this case, the annual depreciation expense would be ($176,000 - $21,000) / 4 = $38,750. This means that for year 2, the depreciation expense would be $38,750 since the machine has a total useful life of four years. However, since straight-line depreciation assumes an even depreciation expense each year, we add half of the annual depreciation expense to the first year's expense to calculate the expense for year 2. Therefore, the depreciation expense for year 2 under straight-line depreciation is $38,750 / 2 + $38,750 = $39,250.
To know more about depreciation visit:
https://brainly.com/question/30887659
#SPJ11
Suppose the city of Austin, TX chooses to regulate the number of street vendors operating near the University of Texas by requiring each vendor to own a permit in order to operate. The city gives free permits to all existing vendors and announces that no new permits will ever be issued. Prior to regulation, the costs (including implicit costs) of operating were $85,000 and revenues were $150,000. The city ordinance allows the permits to be bought and sold without restriction. The permits have no expiration date. The interest rate is 10 percent. After regulation, existing street vendors earn an
A. accounting profit of zero.
B. economic profit of $130,000.
C. economic rent of $65,000
D. economic loss.
Answer:
economic rent of $65,000
Explanation:
Economic rent is the amount of money paid in excess to a factor of production in excess of what is socially optimum
Economic rent = $150,000 - $85,000 = $65,000
Accounting profit= total revenue - explicit cost
Total revenue =price x quantity sold
Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials
Economic profit = accounting profit - implicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
Without the regulation, economic profit would be driven to zero.
Which best describes the role of a consumer?
A) buying goods
B) making products
C) providing products
D) supplying services
how are trade and business related?
Answer:
The key difference between trade and business is that trade involves buying and selling of goods, whereas business involves all activities performed by a business entity including, buying and selling, advertising, marketing, etc.
The lending of deposits to others causes the deposit to be spent and income to increase.
What is this phenomena known as?
A. Multiple Deposit Expansion Multiplier
B. Circular Flow of Deposits
C. Exponential Deposit Multiplier
Answer:
the answer is aaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
Sarah has an apple and Ava has a bag of chips. Sarah would rather consume the bag of chips, and Ava would prefer to consume the apple. Which of the following is an example of bartering?(1 point)
Sarah pays Ava $1 for her bag of chips.
Ava pays Sarah $1 for her apple.
Sarah trades her apple for Ava's bag of chips.
Sarah and Ava consume the goods they currently possess.
Sarah would rather consume the bag of chips, and Ava would prefer to consume the apple. The option that is an example of bartering is: Sarah trades her apple for Ava's bag of chips. The correct option is C.
A barter system is a trading method in which goods and services are traded directly for other goods and services without the use of money. In a barter system, goods are exchanged for other goods. A barter economy is one in which money is not used for transactions, and instead, individuals exchange goods and services to meet their needs.
In a barter system, the exchange can be direct or indirect, depending on the nature of the items being traded. It entails two or more parties exchanging goods or services for mutual benefit without using money as a medium of exchange. For instance, Sarah trades her apple for Ava's bag of chips.
Bartering has a long history, dating back to ancient civilizations when people exchanged goods and services. It became more widespread in the Middle Ages when money was scarce. Bartering has been utilized by individuals, corporations, and even governments throughout history.
The correct option is C.
Learn more about the barter system at https://brainly.com/question/28287900
#SPJ11
It's your lucky day at napili ka sa special promo na ito! Meron kaming handog na FREE 150MB pang-internet, valid for 2 days kapag nag-load ka ng total of P10 bago mag 09/01/2021. Share-A-Load not included. REF#: DTR73
3 Select the correct answer. Tracy applied for a home loan from her bank. The bank is willing to give her the loan but at a very high interest rate. Why do you think the bank is charging her a high interest rate? A low amount of credit left B. good payment history OC. bad payment history OD. high number of bank accounts
Answer:
C. bad payment history
Explanation:
Creditworthiness is the term banks, and other lenders use to determine the risk associated with each customer. Credit score ratings place customers into different risk categories. A low credit score signifies a high-risk customer or low creditworthiness. Banks will extend credit facilities to a high-risk customer at a high-interest rate.
A customer with a poor loan repayment history has a low credit score. Tracy is being offered the loan at a high-interest rate due to her low creditworthiness. Her case would be different if she had a better credit score associated with a good loan repayment history.
Sensitivity analysis: Group of answer choices is affected primarily by the interrelationships between project variables. indicates which variable(s) need to be most closely monitored. is more difficult to conduct than simulation analysis. provides its user with the rate of return that corresponds to the project's IRR. provides limited information and therefore is rarely used in practice.
The sensitivity analysis process indicates which variable(s) need to be most closely monitored.
What is sensitivity analysis?This is a form of financial analysis where various variables are tested for change in the event that market conditions change.
This allows analysts to see which variables should be paid attention to in case of market change so that they can take corrective steps.
Find out more on sensitivity analysis at https://brainly.com/question/13266122
#SPJ1
with a negative amortizing loan, the borrower will end up with a loan balance at the end of the loan that is greater than the original loan balance. group startstrue or false true, unselected false, unselected group ends
The given statement "with a negative amortizing loan, the borrower will end up with a loan balance at the end of the loan that is greater than the original loan balance. " is true .
Amortization is an accounting method used for a certain period of time to gradually reduce the book value of a loan or other intangible asset. Amortization of a loan focuses on deferring loan payments over a period of time.
Amortization is comparable to depreciation in terms of how it affects an asset. Depreciation represents the estimated reduction in the amount or value of a fixed assets within a fiscal year.
Hence the statement is true.
To know more about amortization here
https://brainly.com/question/29643279
#SPJ4
identify ten entrepreneur and classify them under the types of entrepreneur
Answer: There are only five types of entrepenuer...
1. Skeptical entreprenuer: Sees the success of others and questions it.
2. Copycat entreprenuer: Sees the success of others and copys them exactly.
3. Research entrepreneur: They research every possible scenario and outcome for strategies to start or grow a business...
4. The determined entrepreneur: - hasn't made it yet- but will.
5. The accolmplished entrepreneur: Has gone through all types of entrepreneur and has built success from it.
Explanation: Hope this helps!
Which one of the four factors of copyright is MOST important?
Answer:
the purpose and character of the use i think
Explanation:
Which statement best explains why the SEC has concerns about the independence of a CPA firm that has a business relationship with its audit client?O The firm may have a conflicting interest with the audit client. O The firm may depend too heavily on audt fees generated by the clent O The firm may be overy, skeptical about the clientrs financial position. O The frim may have a muluality of interesso with the audit clinent.
The correct option is a. The SEC has concerns about the independence of a CPA firm that has a business relationship with its audit client because the firm may have a conflicting interest with the audit client. This relationship can cause issues with the independence and objectivity of the CPA firm.
Audit client: An audit client is an individual or entity that has been engaged by a certified public accountant (CPA) or accounting firm to perform an audit of their financial statements. The CPA firm is expected to adhere to ethical principles and standards that are necessary for them to perform its audit responsibilities competently and objectively.
Importance of independence in an audit: Independence is critical to the credibility and objectivity of an audit. The purpose of an audit is to provide an independent, objective opinion on an organization's financial statements. If the CPA firm has a business relationship with its audit client, the independence and objectivity of the audit could be in question. The Securities and Exchange Commission (SEC) is concerned about the independence of the CPA firm because of this.
To learn more about Securities and Exchange Commission (SEC): https://brainly.com/question/9089676
#SPJ11
Cain Company reports net cash provided by operating activities of $35,000. It also reports the following information under “Adjustments to reconcile net income to net cash provided by operating activities” on its statement of cash flows (using the indirect method).
It can be seen from the solutions given that Cain's net income is $24,000.
Here is the solution:Net income = Net cash provided by operating activities - Adjustments
= $35,000 - $6,000 - $10,000 + $4,000 + $7,000 + $4,000
= $24,000
Therefore, Cain's net income is $24,000.
Here is a breakdown of the adjustments:
To determine cash flow from operations, it is necessary to include the gain on equipment sales in the net income as it is a non-cash entry.
A rise in accounts receivable implies that customers are prolonging payment of their invoices, resulting in decreased cash flow from the company's activities.
The depreciation expense is classified as a non-cash expense, hence it must be included in the calculation of cash from operations by adding it back to the net income.
A decrease in inventory indicates that the company is experiencing faster turnover of its inventory, leading to increased cash flow generated by its operations.
A rise in prepaid expenses denotes that the company is channeling more funds towards prepaid expenditures like insurance and rent, implying a reduced cash inflow from its operational activities.
A decline in the amount of wages that the company owes indicates that it is not promptly compensating its workforce. Consequently, this implies that the company's operational cash flow is reduced.
Read more about net income here:
https://brainly.com/question/28390284
#SPJ1
What is one typical effect of growth for a business?
Answer: The advantages would be efficiency and accountability; the disadvantages would be resource hoarding and low quality.
Explanation: There will be more trust between workers and indivuals, more accountability as well.
nternet can contain viruses. Unless you need to edit it's safer to stay in Protected View. Enable Editing Case 6.2: The Complaint Letter 1. Briefly summarize the complaints and compliments in Dr. Loflin's letter. 2. Critique the letter of Gail Pearson in reply to Dr. Loflin. What are the strengths and weaknesses of the letter? 3. Prepare an "improved" response letter from Gail Pearson. 4. What further action should Gail Pearson take in view of this incident?
Gail Pearson's response letter to Dr. Loflin was criticized for lacking follow-up on correcting the errors. An improved response letter should emphasize the promised actions to correct the errors.
1. In Dr. Loflin's letter, she compliments Gail Pearson for her effective and efficient manner in handling their project, but complains about the report that was submitted to her as the report was filled with grammatical errors and inaccuracies.
2. Gail Pearson's response letter showed strength in its apologies and sincere acknowledgments of the errors made, as well as the promise to remedy the mistakes in future reports. However, it also showed a lack of follow-up regarding how the report would be corrected, and it included the note about Dr. Loflin's writing that was not necessary to the matter.
3. The improved response letter from Gail Pearson should emphasize the promised actions to correct the errors in the report, along with the details of how the corrections would be made. This letter should apologize to Dr. Loflin again for the inconvenience that was caused and should show empathy towards her, expressing an understanding of her frustration.
4. In view of this incident, Gail Pearson should take further action to ensure that the report is completely corrected and free of errors, and to ensure that a similar situation will not happen again. Gail should provide a plan or a detailed procedure on how they will review and correct the work, and they should include the steps that will be taken to avoid a similar mistake.
To know more about Gail Pearson, visit:-
brainly.com/question/12038804
#SPJ11
Which is a step of closed-loop communication?
a. Confirming task completion before assigning another task
b. Encouraging all team members to speak clearly
c. Abandoning ego
d. Using distinctive speech and a controlled voice
A step of closed-loop communication is confirming task completion before assigning another task.
Closed-loop communication is a process of effective communication that involves feedback and confirmation to ensure that messages are correctly received and understood. It is particularly important in high-stress or high-risk environments, such as healthcare or aviation, where miscommunication or errors can have serious consequences.
Confirming task completion before assigning another task is an important step in closed-loop communication because it ensures that the task has been successfully completed and any issues or concerns have been addressed before moving on to the next task. This step helps to prevent misunderstandings, errors, and miscommunications that can lead to delays, rework, or even accidents.
Other steps in closed-loop communication may include using clear and concise language, repeating or summarizing messages, verifying understanding, and providing feedback to the sender.
Learn more about communication here:
https://brainly.com/question/14665538
#SPJ11
Write about the ways to maintain a positive body
image.
What I Should Do to Maintain a Positive Body Image
Answer:
Eat Healthy
Maintain a good diet
Meditate
Practice self confidence
Work out
Stay positive
Have a healthy mental state
What happens to the economy during a depression? Why does innovation play an important role in the recovery stage of the business cycle? Justify your answers.
Must be written in complete high school level sentences in at least 2 paragraphs (at least 7 sentences EACH)
Answer:
Hope this helps!
Explanation:
Economic depression is a difficult time for any society. It's characterized by a decline in economic activity, high unemployment rates, and reduced consumer spending. During these times, it's important to find ways to stimulate the economy and create new opportunities for growth and job creation. Innovation can play a critical role in the recovery stage of economic depression by creating new solutions and pathways to success. In this essay, we will explore the dynamics of economic depression and the significance of innovation in the recovery stage.
Economic depression is characterized by a decline in economic activity, high unemployment rates, and reduced consumer spending. This can be a result of a variety of factors, including a decrease in demand for goods and services, a decline in business investment, and a decrease in government spending. During these times, it's important to find ways to stimulate the economy and create new opportunities for growth and job creation. One way to do this is through innovation. By creating new products, services, and technologies, businesses can find new markets, create new jobs, and stimulate economic growth.
Innovation can play a critical role in the recovery stage of economic depression by creating new opportunities for growth and job creation. Examples of innovative solutions during economic depressions include new technologies, changes in business models, and government policies that promote investment and entrepreneurship. For example, during the Great Depression, the United States government created the Works Progress Administration (WPA) to employ millions of workers and stimulate economic growth. The WPA built roads, bridges, schools, and other public works projects, creating jobs and stimulating the economy. Similarly, during the recent economic recession, many businesses found new ways to innovate by creating new products and services, such as ride-sharing apps like Uber and Lyft. Innovation can help businesses adapt to changing market conditions and consumer demands, which is crucial during an economic depression. Companies that are able to innovate and create new products or services can gain a competitive advantage and attract new customers, which can help stimulate economic growth. In addition, innovation can also lead to the creation of new industries and job opportunities. For example, the rise of the tech industry in the 1990s created a whole new sector of jobs in areas such as software development, web design, and digital marketing. Furthermore, innovation can also help address societal challenges that may have contributed to the economic depression in the first place. For instance, innovations in renewable energy could help reduce dependence on fossil fuels and mitigate climate change, which could have positive economic impacts in the long run. Overall, innovation is a powerful tool for driving economic growth and creating new opportunities during times of economic depression. By fostering a culture of innovation and investing in research and development, societies can emerge stronger from periods of economic hardship.
Innovation is not just important during the recovery stage of an economic depression, but also in preventing future depressions. By investing in new technologies and promoting entrepreneurship, we can create new opportunities for growth and job creation. For example, investing in green technologies and renewable energy can create new jobs and stimulate economic growth while also reducing our carbon footprint. Additionally, promoting entrepreneurship and small business development can create new opportunities for growth and innovation, helping to prevent future economic downturns. Furthermore, innovation can also lead to increased productivity and efficiency in various industries, which can help to lower costs and increase competitiveness. This can lead to more stable economic growth and less vulnerability to economic downturns. In addition, promoting entrepreneurship and innovation can also help to diversify the economy, reducing reliance on a single industry or sector. This can make the economy more resilient to external shocks and fluctuations.
In conclusion, economic depression is a difficult time for any society. It's characterized by a decline in economic activity, high unemployment rates, and reduced consumer spending. However, by investing in innovation, we can create new opportunities for growth and job creation, both during the recovery stage and in preventing future depressions. Examples of innovative solutions include new technologies, changes in business models, and government policies that promote investment and entrepreneurship. By working together to find new solutions, we can overcome the challenges of economic depression and build a stronger, more resilient economy.
the nominal interest rate currently offered by the bank of allieville is 10 % 10%. if the price level rose by 3 % 3% this year, what is the real interest rate?
The real interest rate is 7%.
Real interest rate= Nominal interest rate- Inflation rate
Here, nominal rate = 10%
Inflation rate= 3%
Real interest rate = 10-3
= 7%
So real interest rate is 7%
Nominal interest rate= The nominal interest rate is the rate that banks, debt issuers, and investment firms advertise for loans and other investments. It is the stated interest rate paid or earned by the lender or investor to the lender. So, if you borrow $100 at a 6% interest rate, you can expect to pay $6 in interest.
Real interest rate= A real interest rate is one that has been adjusted to account for the effects of inflation. It reflects the true cost of funds to a borrower and the true yield to a lender or investor once.
For more information on Real and nominal inflation rate visit:
https://brainly.com/question/25816355
#SPJ4
display ads lets advertisers upload their own ads to the system, allowing advertisers greater control over the look and feel of their messaging. what are the two types of uploaded ads?
Advertisers upload their own ads to the system, allowing advertisers greater control over the look and feel of their messaging these are AMPHTML ads and image ads type of ads.
image adsThere are several examples of image advertising that we see in our daily lives. Many may be seen on large billboards placed near roads. Some examples include Honda, Mac, Bacardi, and Adidas, as well as Quit Smoking.
To know more about ads visit the link
https://brainly.com/question/13917681
#SPJ1
the inflation rates in the u.s. economy for 2009 through 2012 are 2.7%, 1.5%, 3.0%, and 1.7%, respectively. what was the purchasing power of a dollar at the beginning of 2013 compared to that at the beginning of 2009?
At the beginning of 2013, the purchasing power of a dollar was $0.9278 compared to that at the beginning of 2009.
How to calculate purchasing PowerThe purchasing power of a dollar at the beginning of 2013 compared to that at the beginning of 2009 can be calculated by considering the cumulative effect of inflation rates from 2009 through 2012.
The formula for this calculation is:
Purchasing Power = Initial Value / (1 + Inflation Rate)ⁿ Where
n is the number of years.
For 2009 through 2012, the inflation rates are 2.7%, 1.5%, 3.0%, and 1.7%, respectively.
To calculate the cumulative effect, we will apply the formula:
Purchasing Power = $1 / ((1 + 0.027) * (1 + 0.015) * (1 + 0.03) * (1 + 0.017))
Purchasing Power = $1 / (1.027 * 1.015 * 1.03 * 1.017)
Purchasing Power = $0.9278 (rounded to four decimal places)
Learn more about purchasing power at
https://brainly.com/question/14892961
#SPJ11
A tax that takes a higher percentage of income from people with lower
incomes is a
A. progressive tax
B. deductive tax
C. dependent tax
D. regressive tax
A regressive tax is a tax that takes a higher percentage of income from people with lower incomes. Hence, option D is correct.
What is regressive tax?When the overall tax burden drops as income increases, the tax is said to be regressive. While middle- and high-income taxpayers suffer a proportionally smaller part of the tax burden, low-income taxpayers bear a disproportionately large share.
Every taxpayer, regardless of economic level, pays the same amount of money, a regressive tax may initially seem to be a fair method of taxing residents. A closer analysis reveals that such a tax results in lower-income persons paying a bigger percentage of their income than do wealthy ones.
Thus, option D is correct.
For more details about regressive tax, click here:
https://brainly.com/question/9373731
#SPJ2
1. Which of the following are tasks associated with business administration positions? (2 poi
Select the two that apply.
answering phones
designing goods for production
delivering goods to market
maintaining records
repairing computers
Answer:It's A
Explanation: Took the test
Lexi transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $27,500
On November 1, 2019, Lexi Martin established an interior decorating business, Heritage Designs.
To begin the business, Lexi transferred $50,000 in cash from her personal bank account to a new account established for the business in exchange for common stock.
This transaction would be recorded in the accounting records of Heritage Designs as a capital contribution. Specifically, the $50,000 cash received would be debited to the Cash account, while the Common Stock account would be credited for the same amount. This transaction would increase both the assets and equity of the business by $50,000.
It's important for Lexi to establish separate accounts for the business to keep her personal finances separate from the finances of the business. This will help her keep accurate financial records, and ensure that she can track the performance of the business and make informed decisions about its future.
Learn more about finances here
https://brainly.com/question/10024737
#SPJ4
The complete question is
On November 1, 2019, Lexi Martin established an interior decorating business, Heritage Designs. During the month, Lexi completed the following transactions related to the business:
Nov.1 Lexi transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $50,000.
For each lease below identify whether the short-term lease recognition exemption would be available. Fill in the columns by dragging and dropping the options from below, and then select Submit.
Here is the analysis of whether the short-term lease recognition exemption would be available for each lease:
How to explain the leaseLease 1: Lease term: 11 months
Option to purchase: No
The short-term lease recognition exemption would be available for this lease because the lease term is 12 months or less and there is no option to purchase the underlying asset.
Lease 2:Lease term: 10 months
Option to purchase: Yes, but the lessee is not reasonably certain to exercise the option.
The short-term lease recognition exemption would be available for this lease because the lease term is 12 months or less and the lessee is not reasonably certain to exercise the option to purchase the underlying asset.
Lease 3: Lease term: 11 months
Option to purchase: Yes, and the lessee is reasonably certain to exercise the option.
The short-term lease recognition exemption would not be available for this lease because the lease term is 12 months or less, but the lessee is reasonably certain to exercise the option to purchase the underlying asset.
Learn more about lease on
https://brainly.com/question/30237244
#SPJ4