A six-year operating lease requires annual rent payments of $15,000 for years 1, 2, and 3, and annual rent payments of $10,000 for years 4, 5, and 6. The agreement also requires the lessor to pay a $2,800 annual insurance premium for the leased property. Which of the following amounts should be recognized as the rental revenue in year 1 by the lessor?
A) $10,000
B) $13,500
C) $15,000
D) $16,800
C
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If a profitable company has both fixed and variable costs, its operating leverage will always be greater than 1.
Answer the following statement true (T) or false (F)
A variable ratio plan adjusts a portfolio by
A) holding asset weights constant. B) increasing or decreasing all asset weights in response to income changes. C) increasing the weight of assets that have performed well in the recent past. D) increasing the weight of assets that have performed poorly in the recent past. c
A closing argument is a statement by a party that results in a summary judgment in that party's favor
a. True b. False Indicate whether the statement is true or false
Which of the following cost items is not allocable as joint costs when a single manufacturing process produces several main products and several by-products?
A. Direct materials. B. Freight-out. C. Variable overhead. D. Direct labor.