the answer is regressive income tax.
b.the retained earnings beginning balance is usually the retained earnings ending balance from the previous period.
c.the first item normally presented on the statement of stockholders' equity is the balance of retained earnings at the end of the period.
d.the amount of dividends is deducted from net income to arrive at the retained earnings ending balance.
Answer:
The correct answer is option c.
Explanation:
Retained earnings are the part of the revenue which is left after making payments to investors. In other words, it is the part of net income which is left after paying dividends.
It is calculated by adding net income to or subtracting net losses from the previous term's retained earnings and then subtracting net dividend paid to the shareholders.
It is calculated at the end of each accounting period and the retained earnings beginning balance is usually the retained earnings ending balance from the previous period.
B. Increases the expected present value of lease cash flows to the owner
C. Does not impact the expected present value of lease cash flows to the owner
D. Causes the expected present value of lease cash flows to equal zero
Answer:
B. Increases the expected present value of lease cash flows to the owner
Explanation:
A lease option gives a right but not the obligation to the renter of the property to buy the said property at today's current market price upon the expiry of lease term.
Lease option is similar to an option contract, the difference being, here instead of securities, leased property serves as the underlying asset and instead of option premium, the renter pays a premium each year in addition to the rental charges.
Lease cash flows refer to the present value of future cash flows which the lessor/owner receives in the form of lease rentals plus the added premium each year.
The more the benefits under lease option clause, the higher the premium charged and thus, more would be the future receipts of owner which would increase the expected present value of lease cash flows to the owner.