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NEW QUESTION: 1
In TurboIntegrator, what is used to pull data from a relational database (e.g., Oracle)?
A. ODBC
B. ODBO
C. IBM Cognos TM1 View
D. Text
Answer: A
Explanation:
Explanation/Reference:
Explanation:
NEW QUESTION: 2
ABC entities, a manufacturer lesser, leased a chine to XYZ on January 1. The lease meets the criteria for a finance lease. Title to the asset will automatically pass to the lessee at the end of the lease term. Other details are as follow:
Assuming the fair value of the asset is at least equal to the present value of the minimum lease payments, the journal entry to record the inception of this lease on the laser's books at January 1 is:
A. Option C
B. Option B
C. Option D
D. Option A
Answer: C
Explanation:
For this finance lease, the manufacturer-lesser should record
1.As gross investment, the minimum lease payments because there
2.As net investment, the difference between the gross investment in the lease and unearned finance income a credit to a liability
3.As unearned finance income the difference between the gross investment gross investment discounted at the interest rate implicit in the lease)
4.As sales revenue the fair value of the asset o if lower, the present value payments computed at the interest rate implicit in the lease
5.As cost of goods sold, the cost of the leased asset Because the first payment is made at the inception of the lease. the payment structure is that of annuity due. Sales revenue is therefore equal to the US $10.000 periodic payment times the present value of an annuity due of I discounted for 10 years at 10%US $10,000 6.7590 = US $67,590). Given that cash is paid at the beginning of the year, the initial 10.000 cash debit immediately decreases the gross investment in the lease payments receivable) from US $100,000 to US $90,000. The cost of the leased asset US $55,000) must also be charged to cost of sales and credited to inventory. Finally, at the inception of the lease, unearned finance income equals the difference between the gross investment and the sales price US $100,000 ax$67,590 = US 632,410).
NEW QUESTION: 3
A. Option D
B. Option B
C. Option C
D. Option A
Answer: C
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