Canarsie Company leased equipment to Fulton Inc on January 1 . 2014 . The lease is for an eight-year period expiring December 31 . 2021 . The first of eight equal annual payments of $900,000 was made on January 1 . 2014 . Canarsie had purchased the equipment on December 29, 2013 . for $4,800,000 . The lease is appropriately accounted for as a sales-type lease by Canarsie. Assume that the present
value at January 1 . 2014, of all rent payments over the lease term discounted at a 1 . percent interest rate was $5,280,000 . What amount of interest revenue should Canarsie record in 2015 (the second year of the lease period) as a result of the lease?
a. $490,000
b. $480,000
c. $438,000
d. $391,800
D
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Stanfield Equipment sells new tractors and pays each salesperson a commission of $1,000 for each tractor sold. During the month of August, a salesperson, Jason, sold 3 new tractors. Stanfield pays Jason on the 10th day of the month following the sale. Jason operates on the cash basis; the tractor dealer operates on the accrual basis. Which of the following statements is true?
a. Jason will recognize commission revenue earned in the amount of $3,000 in August. b. Stanfield will recognize commission expense in the amount of $3,000 in August. c. Jason will recognize commission expense in the amount of $3,000 in September. d. Jason will recognize revenue in the same month that the tractor dealer recognizes expense.
________ is a promise to refrain from doing an unlawful act, and therefore is a promise that will not support a contract
A) Preexisting duty B) Illusory promise C) Illegal consideration D) Gift promise
Employees of private (nongovernment) employers have some privacy protection under the U.S. Constitution
Indicate whether the statement is true or false
In a ______________________________ all the partners have unlimited liability.
Fill in the blank(s) with the appropriate word(s).