On January 2, 2014, Commack Corporation entered into a 10-year noncancelable lease requiring year-end payments of $60,000 . The incremental borrowing rate for Commack is 10%. The lessor's implicit rate (which is known by Commack) is 12%. The lease contains no transfer of title or bargain purchase option provisions. The leased property has an estimated economic life of 1 . years. At what amount
should the lease be capitalized by Commack?
a. $0
b. $339,012
c. $368,676
d. $600,000
C
You might also like to view...
A patent is a grant by the federal government to an inventor giving the exclusive right to produce, to use, and to sell an invention for a period of seventeen years
a. True b. False Indicate whether the statement is true or false
Commercial bribery is similar to the traditional definition of bribery except that in commercial bribery:
a. something of value is offered to influence a business decision b. payment is received by an employee with the employer's consent. c. the employee extorts money from a potential purchaser or supplier. d. something of value is offered to influence an official act of government.
TomSauce, a brand of tomato sauce, advertises that the tomatoes it uses are processed within 24 hours of being picked to ensure product freshness. In this scenario, the fresh tomatoes are examples of _____
a. raw materials b. component parts c. MRO items d. supplies
The use of dual facilities to manage capacity may be hard to sustain if the labor market is tight
Indicate whether the statement is true or false.