What is the difference between a sales-type lease and a direct-financing lease?
A) The lessor uses a longer amortization period on a sales-type lease.
B) The lessor receives less interest on a sales-type lease.
C) The lessor receives more interest on a sales-type lease.
D) The lessor receives a manufacturer's or dealers profit.
Answer: D
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At the beginning of the year, Elwood Company had 100 units in its inventory at $50 each. On January 17, the company purchased 100 units for $60 each and at the end of the month sold 150 units for $95 each. During March, the company made two purchases of 200 units and 300 units for $70 and $80 each respectively. In the month of April, the company sold 450 units for $105 each. If the company is applying averaging, what would be the amount of gross profit?
a. $20,500 b. $18,500 c. $17,500 d. $19,000 e. $19,500
When comparing mutually exclusive projects which have different scales, you must know the dollar impact of each investment rather than percentage returns
Indicate whether this statement is true or false.