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Problem 1: Kennon Technologies, a dealer of machinery and equipment, leased equipment to Marcos Co. on July 1, 2017. This lease was accounted for as a sale by Kennon and as a purchase by Marcos. The lease is for a ten-year period equal to the useful life of the asset ending June 30, 2027, with payment of ?250,000 beginning July 1, 2017. Kennon purchased the equipment for ?1,337,500 on January 1, 2017 and established a list selling price of ?1,687,500 on the equipment. The present value on July 1, 2017 of the rent payments over the lease term discounted at 12% is ?1,582,500.5. What amount of profit on sale should be recognized for the year ended December 31, 2017?
The following information is available regarding X Company' utility cost in 2019: What was the flexible budget variance for total utility costs in 2019
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