Which of the following is true regarding cause-related marketing?
A) The positive impact of cause-related marketing can be increased through sporadic involvement with numerous causes.
B) Many companies focus on multiple causes to simplify execution and maximize impact.
C) Limiting support to a single cause increases the pool of stakeholders who can transfer positive feelings from the cause to the firm.
D) Most firms choose causes that fit their corporate or brand image and matter to their employees and shareholders.
E) In order to avoid public backlash, firms are advised to adopt a hard-sell approach to their cause efforts.
D
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Avionics Inc, a dealer in machinery and equipment, leased equipment to Benchmark Products on July 1 . 2014 . The lease is appropriately accounted for as a sale by Avionics and as a purchase by Benchmark. The lease is for a ten-year period (the useful life of the asset) expiring June 30, 2021 . The first of ten equal annual payments of $250,000 was made on July 1 . 2014 . Avionics had purchased
the equipment for $1,337,500 on January 1 . 2014, and established a list selling price of $1,687,500 on the equipment. Assume that the present value at July 1 . 2014, of the rent payments over the lease term discounted at 1 . percent (the appropriate interest rate) was $1,582,500 . What is the amount of profit on the sale and the amount of interest income that Avionics should record for the year ended December 31 . 2014? a. $245,000 and $94,950 b. $245,000 and $79,950 c. $350,000 and $79,950 d. $350,000 and $94,950
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Intended beneficiaries and creditor beneficiaries can be the same person
Indicate whether the statement is true or false