Business, 26.03.2020 17:36, aricketts3901

Cullumber Co. processes jam and sells it to the public. Cullumber leases equipment used in its production processes from Marin, Inc. This year, Cullumber leases a new piece of equipment from Marin. The lease term is 5 years and requires equal rental payments of $15,000 at the beginning of each year. In addition, there is a renewal option to allow Cullumber to keep the equipment one extra year for payment at the end of the fifth year of $13,000 (which Cullumber is reasonably certain it will exercise). The equipment has a fair value at the commencement of the lease of $78,375 and an estimated useful life of 7 years. Marin set the annual rental to earn a rate of return of 5%, and this fact is known to Cullumber. The lease does not transfer title, does not contain a bargain purchase option, and the equipment is not of a specialized nature. How should Cullumber Co. classily this lease?

Answers: 2

Show answers

Other questions on the subject: Business

Business, 22.06.2019 05:00, grangian06

Personal financial planning is the process of creating and achieving financial goals? true or false

Answers: 1

continue

Business, 22.06.2019 15:10, emilee30

You want to have $80,000 in your savings account 11 years from now, and you’re prepared to make equal annual deposits into the account at the end of each year. if the account pays 6.30 percent interest, what amount must you deposit each year? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

Answers: 1

continue

Business, 22.06.2019 16:20, valdezavery1373

The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 10 and the daily production rate is 100. the production order quantity for this problem is approximately:

Answers: 1

continue

Business, 22.06.2019 16:40, krystalsozaa

Determining effects of stock splits oracle corp has had the following stock splits since its inception. effective date split amount october 12, 2000 2 for 1 january 18, 2000 2 for 1 february 26, 1999 3 for 2 august 15, 1997 3 for 2 april 16, 1996 3 for 2 february 22, 1995 3 for 2 november 8, 1993 2 for 1 june 16,1989 2 for 1 december 21, 1987 2 for 1 march 9, 1987 2 for 1 a. if the par value of oracle shares was originally $2, what would oracle corp. report as par value per share on its 2015 balance sheet? compute the revised par value after each stock split. round answers to three decimal places.

Answers: 1

continue

Do you know the correct answer?

Cullumber Co. processes jam and sells it to the public. Cullumber leases equipment used in its produ...