Historical cost of the generators

Assignment Help Accounting Basics
Reference no: EM13127190

Finance Here Sales & Service provides leased-based financing for its full line of commercial generators. Sales of the generators are properly accounted for as operating sales-type leases. Terms of the leases include return of the generators to Finance Here Sales & Service for resale in secondary markets. The company estimates that the non-guaranteed residual values on generators are equal to an average of 10 percent of the historical cost of the generators. Finance Here Sales & Service can expect that:

A) Cost of goods sold will be equal to the historical cost of the generators sold.

B) Cost of goods sold will be greater than the historical cost of the generators sold.

C) Cost of goods sold will be less than the historical cost of the generators sold.

D) The relationship of cost of goods sold and the historical cost of the generators cannot be determined.

Reference no: EM13127190

Questions Cloud

Minimum sample size analysis : One researcher wishes to estimate the mean number of hours that high school students spend watching TV on a weekday. A margin of error of 0.25 hour is desired. Past studies suggest that a population standard deviation of 1.7 hours is reasonable.
How many grams of sucrose (c12h22o11) must be added : How many grams of sucrose (C12H22O11) must be added to 509 g of water to give a solution with a vapor pressure 0.723 mmHg less than that of pure water at 20 degrees C.
Find the likelihood to get wish : Sue and Jim approached the machine first. They both said they wanted red gum balls. What is the likelihood they will get their wish?
Statistical analysis in random sample : You select a random sample of n=14 families in your neighborhood and find the following family size (number of people in the family).
Historical cost of the generators : The company estimates that the non-guaranteed residual values on generators are equal to an average of 10 percent of the historical cost of the generators. Finance Here Sales & Service can expect that:
Calculate the partial pressure of the gases : A mixture of gases contains 0.290 mol CH4, 0.240 mol C2H6, and 0.300 mol C3H8. The total pressure is 1.40 atm. Calculate the partial pressure of the gases.
What are the advantages to normalization : What is data redundancy? We know that the normalization breaks up large tables into smaller more manageable tables.
Find range-mean price and standard deviation of gasoline : The prices recorded were $1.36, $1.37, $1.38, $1.39, and $1.40. What is the range, mean price, and the standard deviation of the gasoline?
What is the consolidated net income for 2013 : Slaughter earned $220,000 in net income in 2013 (not including any investment income) while Bennett reported $90,000. Slaughter attributed any excess acquisition-date fair value to Bennett's unpatented technology, which was amortized at a rate of ..

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Contango market and backwardation market

Write down the difference between a contango market and a backwardation market. What exactly is meant by a basis?

  Construction contracted to build a bridge

Dalton construction contracted to build a bridge for $5,000,000. Construction began in 2010 and was completed in 2011. Data relating to construction are:

  Techniques in business and economics

A rug manufacturer has decided to use 7 compatible colors in her rugs. However, in weaving a rug, only 5 spindles can be used. In advertising, the rug manufacturer wants to indicate the number of different color groupings for sale.

  Direct labor efficiency variance problem

Yola Company manufactures a product with standards for direct labor of 4 direct labor-hours per unit at a cost of $12.00 per direct labor-hour. During June, 1,000 units were produced using 4,100 hours at $12.20 per hour. The direct labor efficienc..

  Discusses debits and credits

Define the terms debit and credit. Explain how debits and credits affect the following: assets, liabilities, owner's capital account, revenues and expenses.

  Stocks-equity and journal entries

The Cosmo Company was started by issuing 800 shares of $10 par value stock at an average market price of $20 per share. Prepare journal entries to record the treasury stock transactions. Prepare the equity section of the balance sheet for Cosmo Compa..

  Direct materials cost and direct labor cost

What term is commonly used to describe the concept whereby the cost of manufactured products is composed of direct materials cost, direct labor cost, and factory overhead cost?

  Revamping standard setting for accounting

Is there a need for revamping the standard setting for (GAAP) accounting and should the federal government be involved?

  How will any marital deduction be determined

Bernice dies and, under a will, passes real estate to her surviving husband. The real estate is subject to a mortgage. For estate tax purposes, how will any marital deduction be determined? Can Bernice's estate deduct the mortgage under § 2053? Ex..

  Discuss applicable sales, licensing

Makes recommendations for the company to minimize the threat of lawsuits relating to privacy protection, product liability, or intellectual property rights.

  Which type of business organization will meet desean

Which type of business organization will meet Desean's needs best and why? Discuss possible issues and/or limitations Desean may encounter as a result of choosing this business organization compared with others.

  What amount of cash should be reported

Modern Mother Magazine has received cash subscriptions on April 1, 2009 in the amount of $3,600,000 for the next three years. Their year-end is December 31, 2009.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd