Homework Answers
The answer is D. In the 10 year period, the lease will be considered as a fixed cost for the 10 year period, and further more it will be a variable cost assuming you renew the lease. Therefore all the costs for the business are all long run cost decisions.
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Suppose a business signs a 10-year lease to rent office space in a city for a...
Suppose you want to rent office space for your new business. You write a check for $3,000...
Suppose you want to rent office space for your new business. You write a check for $3,000 on January 2, 2018 to lease the office space for the month of January. How would you account for this transaction?
Example Suppose you are a small business and you currently rent 1200 sq ft. of office...
Example Suppose you are a small business and you currently rent 1200 sq ft. of office space at $22.50 a sq ft per year. In this cost, office cleaning is included. You are now looking at moving to a bigger office space of 2500 sq ft, and the utilities of water and electric are included in addition to the office cleaning. Three years ago when you signed the lease, the inflation rate was 105. The current inflation rate is 120....
A business owner is trying to decide whether to buy, rent, or lease office space and...
A business owner is trying to decide whether to buy, rent, or lease office space and has constructed the following payoff (profit in thousands of dollars) table based on whether a business will be brisk, medium, or slow. Business Level Decision Brisk Medium Slow ──────────────────────────────────────── Buy 90 50 30 Rent 50 60 45 Lease 40 55 50 Assume that the probability of a brisk business level is 0.4, the probability of a medium business level is 0.4 and...
A commercial real estate agent claims that office in a particular city is available for lease...
A commercial real estate agent claims that office in a
particular city is available for lease rate of 100$ per square
foot. A sample of 30 properties available for lease provides an
average of $107.81 and a standard deviation of $33.47. The
researchers is intent in finding evidence at the .10 level that the
average lease rate is not $100 per square foot. Which of the
following pairs of hypotheses correctly expresses the question of
interest?
Questions 1 through 5...
QS 10-18C Recording capital leases LO C3 Algoma, Inc., signs a five-year lease for office equipment...
QS 10-18C Recording capital leases LO C3 Algoma, Inc., signs a five-year lease for office equipment with Office Solutions. The present value of the lease payments is $10.720. Prepare the journal entry that Algoma records at the inception of this capital lease. View transaction list Journal entry worksheet Record the capital lease of office equipment of $10,720. Note: Enter debits before credits. General Journal Debit Transaction Credit < Prev 13 of 14 ! Next > O EL
You are running a business that sells office supplies. Your monthly lease on the space is...
You are running a business that sells office supplies. Your monthly lease on the space is $3600. This past week, you sold 820 rulers for $1.25 each (they cost you $0.25 each), 900 reams of paper at for $7.99 per ream (they cost you $4 each), 172 computers at an average price of $674.99 (your cost: $497), and 86 printers at an average price of $109.95 (your cost: $89). Over the course of this week, you paid 4 part-time employees...
3) There are 1,000 identical perfectly competitive real-estate firms selling office space in Syracuse, NY. The Marginal...
3) There are 1,000 identical perfectly competitive real-estate firms selling office space in Syracuse, NY. The Marginal Cost of producing each square foot of space is constant and equal to $20. There are no fixed costs of production. So the firm’s short-run and long-run cost function is c(q) = 20q. The market demand is Q = 10,000 - 250p. a) What is the equilibrium price and quantity of office space in the real-estate market in the short-run? How much does...
3) There are 1,000 identical perfectly competitive real-estate firms selling office space in Syracuse, NY. The Marginal...
3) There are 1,000 identical perfectly competitive real-estate firms selling office space in Syracuse, NY. The Marginal Cost of producing each square foot of space is constant and equal to $20. There are no fixed costs of production. So the firm’s short-run and long-run cost function is c(q) = 20q. The market demand is Q = 10,000 - 250p. Suppose a monopolist decides to buy out all 1,000 firms at once and monopolize the real estate market in Syracuse. Assume...
Please show all calculations. Lessee enters into a five-year lease of office space on January 1,...
Please show all calculations. Lessee enters into a five-year lease of office space on January 1, and concludes that the agreement is an operating lease. Lessee pays initial direct costs of $5,000. The agreement provides the following: Lease term Five years, with the first payment due at lease commencement and the remainder annually at the lease anniversary date thereafter Annual payments, beginning at lease commencement and annually thereafter Commencement – $25,000 Year 2 – $26,000 Year 3 – $27,000 Year...
A law firm is expanding rapidly and must move to new office space. Business is good,...
A law firm is expanding rapidly and must move to new office space. Business is good, and the firm is encouraged to purchase an entire building for £10 million. The building offers first-class office space, is conveniently located near their most important corporate clients, and provides space for future expansion. The firm is considering how to pay for it. David Rooney, a consultant, encourages the firm not to buy the building but to sign a long- term lease instead. With...
Example Suppose you are a small business and you currently rent 1200 sq ft. of office space at $22.50 a sq ft per year. In this cost, office cleaning is included. You are now looking at moving to a bigger office space of 2500 sq ft, and the utilities of water and electric are included in addition to the office cleaning. Three years ago when you signed the lease, the inflation rate was 105. The current inflation rate is 120....
A commercial real estate agent claims that office in a
particular city is available for lease rate of 100$ per square
foot. A sample of 30 properties available for lease provides an
average of $107.81 and a standard deviation of $33.47. The
researchers is intent in finding evidence at the .10 level that the
average lease rate is not $100 per square foot. Which of the
following pairs of hypotheses correctly expresses the question of
interest?
Questions 1 through 5...
QS 10-18C Recording capital leases LO C3 Algoma, Inc., signs a five-year lease for office equipment with Office Solutions. The present value of the lease payments is $10.720. Prepare the journal entry that Algoma records at the inception of this capital lease. View transaction list Journal entry worksheet Record the capital lease of office equipment of $10,720. Note: Enter debits before credits. General Journal Debit Transaction Credit < Prev 13 of 14 ! Next > O EL
You are running a business that sells office supplies. Your monthly lease on the space is $3600. This past week, you sold 820 rulers for $1.25 each (they cost you $0.25 each), 900 reams of paper at for $7.99 per ream (they cost you $4 each), 172 computers at an average price of $674.99 (your cost: $497), and 86 printers at an average price of $109.95 (your cost: $89). Over the course of this week, you paid 4 part-time employees...
A law firm is expanding rapidly and must move to new office space. Business is good, and the firm is encouraged to purchase an entire building for £10 million. The building offers first-class office space, is conveniently located near their most important corporate clients, and provides space for future expansion. The firm is considering how to pay for it. David Rooney, a consultant, encourages the firm not to buy the building but to sign a long- term lease instead. With...
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