Expected future warranty claims, Managerial Accounting

Assignment Help:

1. Paid $350,000 to purchase furniture and leased it to DEF Corp. for 5 years. DEF agreed to pay $89,955 on July 1 for each of the next 5 years.  At the end of the lease term we expect the furniture to have a value of $60,000 and one year of useful life remaining.  We expect to earn a return of 8% on the lease.

2. Paid $120,000 to purchase 10,000 shares of our (XYZ) common stock. 

3. Issued 25,000 stock options to our employees with the strike price equal to the current price of $12 per share.  Each option has a fair value of $4.We expect none of our employees will forfeit their options. The options carry a one-year vesting period and mature in 5 years.


Related Discussions:- Expected future warranty claims

State material price variance, State Material price variance Difference...

State Material price variance Difference among standard price and the actual price of the material is the material price variance. This variance arises because of various facto

Extra cost decision, Discuss arguably how management accountants should dec...

Discuss arguably how management accountants should decide when are faced with the extra shift decision

Financial perspective, Financial Perspective How do we produce value fo...

Financial Perspective How do we produce value for our shareholders? This perspective covers traditional measures e.g. growth, liability, shareholder value. But these are set on

Cost advantage and value chain , Cost Advantage and Value Chain Cost a...

Cost Advantage and Value Chain Cost advantage is one of the two types of competitive advantage a firm may possess. Cost is also of vital significance to differentiation strate

State the capital turnover ratio, Capital turnover ratio  Meaning: th...

Capital turnover ratio  Meaning: this ratio establishes a relationship among net sales and capital employed. Objective: the objective of computing this ratio is to verif

State the steps for standard costing system, State the steps for Standard c...

State the steps for Standard costing system standard costing system involves the following steps 1) Setting-up of standards for each element of cost: standards should be s

Budget and Budgetary Control, I am to write thesis on Budget and Budgetary ...

I am to write thesis on Budget and Budgetary Contro. Can you please help me with contents and notes?

Choosing relationship predicts best variable-cost estimating, Choose the re...

Choose the relationship which best predicts the dependent variable After exploring a diversity of relationships, you should select the one that can best be employed in predicti

Motives for holding cash, The firm's require holding cash may be attributed...

The firm's require holding cash may be attributed to the three motives specified below: The transaction motive The precautionary motive The speculative motive.

Write Your Message!

Captcha
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!

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