You can lease a car for 5 years by paying $5,000 today and then making lease payments of $350 per month

You can lease a car for 5 years by paying $5,000 today and then making lease payments of $350 per month (starting next month) for 5 years. Or you can buy the car now for $30,000 and then in 5 years sell the car for $18,000 Either way you have use of the car for 5 years. If your investments earn 5.00% APR (compounded monthly) which alternative is cheaper and by how much in present value terms?

You can purchase an appliance (refrigerator, furnaces, A/C, etc.) maintenance contract. You can pay $1,000 today for a year

You can purchase an appliance (refrigerator, furnaces, A/C, etc.) maintenance contract. You can pay $1,000 today for a year's maintenance coverage or pay $90 per month, each month, starting today, for 12 months. If your investments earn 5.00% APR (compounded monthly), how much would you save or would it cost you (in present value terms) to pay on a monthly basis?

Abbott Landscaping purchased a tractor at a cost of $42,000 and sold it three years later for $21,600

Abbott Landscaping purchased a tractor at a cost of $42,000 and sold it three years later for $21,600. Abbott recorded depreciation using the straight-line method, a five-year service life, and a $3,000 residual value. Tractors are included in the Equipment account.

Required:

1. Record the sale.

2. Assume the tractor was sold for $13,600 instead of $21,600. Record the sale.

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Russell Retail Group begins the year with inventory of $55,000 and ends the year with inventory of

Russell Retail Group begins the year with inventory of $55,000 and ends the year with inventory of $45,000. During the year, the company has four purchases for the following amounts.   

  Purchase on February 17            $ 210,000 

  Purchase on May 6        130,000 

  Purchase on September 8          160,000 

  Purchase on December 4           410,000

Required:

Calculate cost of goods sold for the year.

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