CHAPTER 21 Accounting for Leases SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE 21-1 The lease does not meet the transfer of ownership test‚ the bargain purchase test‚ or the economic life test [(5 years ÷ 8 years) < 75%]. However‚ it does pass the recovery of investment test. The present value of the minimum lease payments ($31‚000 X 4.16986 = $129‚266) is greater than 90% of the FV of the asset (90% X $138‚000 = $124‚200). Therefore‚ Callaway should classify the lease as a capital lease.
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Many people believe sweatshops are a thing of the past‚ but the sad reality is they are still prominent‚ not only in foreign countries but also right here in the United States. Sweatshops violate human rights‚ and many big companies we are familiar with are at fault. The term “sweating system” or “sweatshop” first originated in the 1840’s. The earliest definitions of the term did not relate to the actual conditions of the workshops‚ instead it referred to the relationship between the workers‚ producers
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The United States populates over 325 million people. Of these 325 million‚ 13.5 percent of them are under the poverty threshold‚ which is about 42.3 million people. These people are lacking of basic requirements for living such as money‚ clothes‚ a home‚ food‚ and even education. Without their basic requirements for living it makes it harder for them to get out of their current situation. Even though the government have tried to step in and solve this problem‚ the government programs that are set
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Economic affect of flooding on the Pakistan economy The floods in Pakistan have amounted to an economic disaster for the country. The scale of the human tragedy is enormous. To put it in some perspective‚ the flood waters have submerged one-fifth of Pakistan; roughly an area the size of Florida culminating in 1600 dead‚ about 20 million people displaced and 17 million acres of farmland destroyed. Pakistan’s towns‚ villages‚ crops‚ livestock‚ personal possessions and infrastructure have been completely
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Diversity In The United States Sandra Scott ETH/125 October 14‚ 2012 Rodney Cullifer Diversity in the United States We are brought up to believe that America is and has always been a nation of opportunity‚ home of the brave‚ and the land of the free. But anyone with a basic understanding of American history is aware that this is not the case. The first settlers had to fight be gain a foothold in this country and then their freedom from Britain. African Americans then had to fight
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capitalism continue to operate in the United States‚ moreover; they waste away the world’s natural resources which they put towards creating profitable devices and sell to the public. Capitalism is a serious subject in our particular era; the kind of products which manufactures produce‚ are being sold throughout America‚ which specifically aim towards the wealthy. Also‚ capitalism uses advertising as a main source of selling their devices to the general public‚ furthermore; these advertisements
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Another key that prevents the poor from raising capital is that they are often forced to purchase public goods and services at a much higher cost that are readily available to other groups in society at market or below market
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Citizenship in the United States has been a sought-after dream by many people in the World. It is the reason we are the “great melting pot”‚ and the reason for the many mass immigrations that have taken place to the United States. Over the course of two centuries‚ there has been much turmoil in United States politics about giving citizenship status to immigrants. Most of the latter reasoning for not wanting to grant citizenship has been blamed justly on the prejudice of American Society. The Supreme
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POVERTY IN THE UNITED STATES Poverty in the United States today has many faces. There’s the pleading face of a middle-aged man on a city street holding up a sign that says “Hungry‚ Need Help.” There’s the anxious face of a young child in a schoolroom somewhere‚ whose only real meal today will be a free school lunch. There’s the sad face of a single mother who doesn’t have enough money to buy clothes for her children. And there’s the frustrated face of a young man working at a minimum-wage job
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Although the United States have made great strides toward cultural diversity and the equality of all people‚ discrimination has still managed to destroy lives in modern society. This country was founded by immigrants‚ yet the majority of society still looks upon immigration with hatred. The attitude of the general public was heavily influenced in the aftermath of the September 11th attacks‚ causing innocent citizens to be labeled as terrorists. More than a decade later‚ Presidential candidate Donald
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