User Account

All Pages

What expense should rudy company record

Assignment Help Accounting Basics
Reference no: EM132040685

Question - On February 20, 2014, Barbara Brent Inc., purchased a machine for $1,543,200 for the purpose of leasing it. The machine is expected to have a 10-year life, no residual value, and will be depreciated on the straight-line basis. The machine was leased to Rudy Company on March 1, 2014, for a 4-year period at a monthly rental of $18,500. There is no provision for the renewal of the lease or purchase of the machine by the lessee at the expiration of the lease term. Brent paid $26,688 of commissions associated with negotiating the lease in February 2014.

(a) What expense should Rudy Company record as a result of the facts above for the year ended December 31, 2014?

(b) What income or loss before income taxes should Brent record as a result of the facts above for the year ended December 31, 2014? (Hint: Amortize commissions over the life of the lease.)

Reference no: EM132040685

Questions Cloud

Common types of attacks and threats : Why is it important to understand most common types of attacks and threats?
Internal corporate investigations : You are investigation an e-mail harassment case. Would you suggest collecting evidence for the case be handled by internal corporate investigations
Define diversity and terms related to diversity : You are designing a diversity awareness training session. You have created four learning objectives. Upon completion of the training session.
Securing the cloud for the enterprise : Based on the the article titled "Securing the Cloud for the Enterprise". What do YOU believe to be the two (2) most important security considerations
What expense should rudy company record : What expense should Rudy Company record as a result of the facts above for the year ended December 31, 2014
Intrinsic value of the stock and pv of growing opportunity : assume that roe is 9.5% same as the required return rate.calculate the intrinsic value of the stock and the PV of the growing opportunity.
Lottery number generator : Design a program that generates a 7-digit lottery number. The program should have an Integer array with 7 elements. Should have a loop that steps
Prepare the journal entries for plano for the years : Assume that Plano uses a weighted average costing system. Prepare the journal entries for Plano for the years of 2013 through 2016
Determine financial strategies to sustain investor relation : Develop alternative tax strategies that support shareholder interests for the executive team to consider.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Appropriate month-end adjusting entry

At the beginning of December, Global Corporation had $2,100 in supplies on hand. During the month, supplies purchased amounted to $3,800, but by the end of the month the supplies balance was only $1,300. What is the appropriate month-end adjusting..

  State the type of auditors report that should be issued

state the alternative reports you are considering and the additional information you need to make the decision

  Different contractual provision of foxtrot trade receivables

Foxtrot Co. (Foxtrot) plans to sell its trade receivables to Hotel Bank to raise immediate cash for operating purposes. Hotel Bank has proposed several.

  Apollo company manufactures a single product that sells for

apollo company manufactures a single product that sells for 160 per unit and whose total variable costs are 120 per

  If investors have become more risk-averse due to recent

calculate the required rate of return for an asset that has a beta of 1.8 given a risk-free rate of 5 and a market

  Calculate the cost per patient day

The nursing supervisor has a salary of $80,000. Calculate the cost per patient day by using a functional-based approach

  Predetermined overhead rate to apply overhead cost to jobs

The company uses a predetermined overhead rate to apply overhead cost to jobs

  Using the high-low method estimate a cost formula for

amfac company manufactures a single product. the company keeps careful records of manufacturing activities from which

  John annualized holding period return

John purchased 100 shares of Black Forest Inc. stock at a price of $153.96 three months ago. He sold all stocks today for $157.67. During this period the stock paid dividends of $5.04 per share. What is John's annualized holding period return (ann..

  Prepare a cash budget for the months of july and august

the gannon company has budgeted sales revenues as followsjunejulyaugustcredit sales270002900018000cash

  If abc uses uses the direct method of cost allocation and

abc company has two service departments a amp b and two production departments x amp y. the number of employees in each

  Compute the basic earnings per share

Required: Compute the basic earnings per share and the diluted earnings per share. The tax rate is 30%

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd