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20 days ago

On January 1, Year 1, the Timble Corporation (Timble) leases a piece of typical equipment to use for eight years. The equipment

has an expected life of ten years and no anticipated salvage value. Timble has an incremental borrowing rate of 5%. Annual payments for this asset are $9,000 with the first payment to be made immediately. At the end of the eight years, Timble has the right to buy the asset for $10,000 in cash. This amount is expected to be significantly below the expected fair value of the equipment on that date so it is reasonable to expect Timble to pay this amount. Timble records depreciation based on the straight-line method and interest based on the effective rate method. The present value of an annuity due of $1 at 5% for eight years is assumed to be 6.80. The present value of an ordinary annuity of $1 at 5% for eight years is assumed to be 6.50. The present value of a single amount of $1 at 5% in eight years is assumed to be 0.66. What amount of depreciation expense should Timble record for Year 1

Business

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Carrying and using a high-end credit card like an American Express Centurion Card would satisfy needs at what level in the Maslo

Scilla [3833]

Answer:

Using and carrying a premium credit card like the American Express Centurion Card fulfills needs at which tier of the Maslow hierarchy?

Esteem level.

Explanation:

The Maslow hierarchy of needs is a psychological model comprising five levels arranged in a pyramid format. The lower tiers consist of basic needs that must be addressed before tackling those higher up. These foundational needs typically include physical requirements such as food, shelter, and security, whereas the higher tiers aim to enhance a person's overall quality of life. They encompass aspects like safety, love, basic needs, and self-actualization.

The hierarchy can be divided into two categories: deficiency needs and growth needs. The initial four levels correspond to deficiency needs, while the top level is characterized as a growth need. Deficiency needs stem from a lack or deprivation, while growth needs originate from a potent desire to improve and excel. The five levels are physiological, safety, love and belonging, esteem, and self-actualization.

In this scenario, an individual possessing a high-end credit card is likely motivated by status, placing them firmly within the esteem level of Maslow's hierarchy.

5 0

3 months ago

Malkin corp. has no debt but can borrow at 8.75 percent. the firm’s wacc is currently 16 percent, and there is no corporate tax.

Scilla [3833]

Response:

16%

17.3%

23.25%

16%

Clarification:

WACC represents the average cost of capital for a firm, based on the proportions of debt and equity multiplied by their respective costs.

Having the capital cost, the next step is to compute the equity cost.

Cost of Capital = (Cost of Equity x Proportion of equity) + (Cost of Debt x Proportion of Debt)

No Debt

16% = (Cost of Equity x 1 ) + (8.75% x 0)

16% = Cost of Equity + 0

Cost of Equity = 16%

15% Debt and 85% for Equity (100%-15%)

16% = (Cost of Equity x 85% ) + (8.75% x 15%)

0.16 = (Cost of Equity x 0.85) + 0.013125

0.16 - 0.013125 = Cost of Equity x 0.85

0.146875 = Cost of Equity x 0.85

Cost of Equity = 0.146875 / 0.85 = 0.17279

Cost of Equity = 17.3%

50% Debt and 50% for Equity (100%-50%)

16% = (Cost of Equity x 50% ) + (8.75% x 50%)

0.16 = (Cost of Equity x 0.50) + 0.04375

0.16 - 0.04375 = Cost of Equity x 0.50

0.11625 = Cost of Equity x 0.50

Cost of Equity = 0.11625 / 0.50 = 0.2325

Cost of Equity = 23.25%

WACC in b and c remains at 16%

7 0

2 months ago

Read 2 more answers

Schrand Aerobics, Inc., rents studio space (including a sound system) and specializes in offering aerobics classes. On January 1

arsen [3447]

Answer:

Schrand Aerobics, Inc.

a. Journal Entries:

Debit Accounts Payable $600

Credit Cash $600

To document the cash payment.

Debit Rent $3,600

Credit Cash $3,600

To document the cash payment.

Debit Accounts Receivable $11,500

Credit Service Revenue $11,500

To record the client billing.

Debit Advertising $500

Credit Accounts Payable $500

To document promotional expenses.

Debit Cash $10,000

Credit Accounts Receivable $10,000

To register the cash received.

Debit Wages $2,400

Credit Cash $2,400

To register the cash paid.

Debit Utilities $680

Credit Accounts Payable $680

To document utility costs.

Debit Interest $20

Credit Cash $20

To register interest payment on notes payable.

Debit Retained Earnings $900

Credit Cash $900

To document dividend payment.

Debit Equipment $4,000

Credit Cash $4,000

To document cash used for purchasing sound equipment.

b. T-Accounts:

Cash

Description Debit Credit Balance

Balance $5,000

Accounts payable $600 4,400

Rent 3,600 800

Accounts receivable 10,000 10,800

Wages 2,400 8,400

Interest 20 8,380

Dividend 900 7,480

Equipment 4,000 3,480

Accounts Receivable

Description Debit Credit Balance

Balance $5,200

Service Revenue 11,500 16,700

Cash 10,000 6,700

Equipment

Description Debit Credit Balance

Cash $4,000 $4,000

Notes Payable

Description Debit Credit Balance

Balance $2,500

Accounts Payable

Description Debit Credit Balance

Balance $1,000

Cash $600 400

Advertising $500 900

Utilities 680 1,580

Common Stock

Description Debit Credit Balance

Balance $5,500

Retained Earnings

Description Debit Credit Balance

Balance $1,200

Dividends $900 300

Services Revenue

Description Debit Credit Balance

Accounts receivable $11,500 $11,500

Rent Expense

Description Debit Credit Balance

Cash $3,600 $3,600

Advertising Expense

Description Debit Credit Balance

Accounts payable $500 $500

Wages Expense

Description Debit Credit Balance

Cash $2,400 $2,400

Utilities Expense

Description Debit Credit Balance

Utilities payable $680 $680

Interest Expense

Description Debit Credit Balance

Cash $20 $20

Explanation:

Journal entries provide the initial record of transactions using debits and credits to the relevant accounts.

T-accounts serve as general ledger accounts that summarize transactions and compute the balance for each account.

4 0

3 months ago

Greg Downs recently has noticed that the plant he is managing is delivering only 30 percent of its products on time. To determin

Katen [3525]

Answer:

A democratic leader

Explanation:

A democratic leader is characterized by a participative approach to leadership, representing a shared form of leadership where decisions are made collectively by all leaders.

In this scenario, everyone within the organization or company has the right to contribute and share new ideas or perspectives.

Therefore, in the context of the question, Grey is depicted as a democratic leader since he gathers all department heads to engage in the decision-making process.

6 0

3 months ago