Hook Company leased equipment to Emley Company on July 1, 2014, for a one-year period expiring June 30, 2015, for $60,000 a month. On July 1, 2015, Hook leased this piece of equipment to Terry Company for a three-year period expiring June 30, 2018, for $75,000 a month. The original cost of the equipment was $4,800,000. The equipment, which has been continually on lease since July 1, 2010, is being depreciated on a straight-line basis over an eight-year period with no salvage value. Assuming that both the lease to Emley and the lease to Terry are appropriately recorded as operating leases for accounting purposes, what is the amount of income (expense) before income taxes that each would record as a result of the above facts for the year ended December 31, 2015? Hook Emley Terry a. $210,000 $(360,000) $(450,000) b. $210,000 $(360,000) $(750,000) c. $810,000 $(60,000) $(150,000) d. $810,000 $(660,000) $(450,000)

why A

The following information was taken from the 2015 financial statements of Dunlop Corporation: Bonds payable, January 1, 2015 $ 600,000 Bonds payable, December 31, 2015 3,600,000 During 2015 A $540,000 payment was made to retire bonds payable with a face amount of $600,000. Bonds payable with a face amount of $240,000 were issued in exchange for equipment. In its statement of cash flows for the year ended December 31, 2015, what amount should Dunlop report as proceeds from issuance of bonds payable? a. $3,000,000 b. $3,300,000 c. $3,360,000

d. $3,840,000

why C

Minear Company reported net income of $450,000 for the year ended 12/31/15. Included in the computation of net income were: depreciation expense, $60,000; amortization of a patent, $32,000; income from an investment in common stock of Brett Inc., accounted for under the equity method, $48,000; and amortization of a bond discount, $12,000. Minear also paid an $80,000 dividend during the year. The net cash provided by operating activities would be reported at a. $506,000. b. $426,000. c. $394,000. d. $314,000.

why A