On january 1, espinoza moving and storage leased a truck for a four-year period, at which time possession of the truck will revert back to the lessor. annual lease payments are $10,000 due on december 31 of each year, calculated by the lessor using a 5% discount rate. if espinoza's revenues exceed a specified amount during the lease term, espinoza will pay an additional $4,000 lease payment at the end of the lease. espinoza estimates a 60% probability of meeting the target revenue amount. what amount should be added to the right-of-use asset and lease liability under the contingent rent agreement?

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Ardmore farm and seed has an inventory dilemma. they have been selling a brand of very popular insect spray for the past year. they have never really analyzed the costs incurred from ordering and holding the inventory and currently fave a large stock of the insecticide in the warehouse. they estimate that it costs $25 to place an order, and it costs $0.25 per gallon to hold the spray. the annual requirements total 80,000 gallons for a 365 day year.a. assuming that 10,000 gallons are ordered each time an order is placed, estimate the annual inventory costs.b. calculate the eoq.c. given the eoq calculated in part b., how many orders should be placed and what is the average inventory balance? d. if it takes seven days to receive an order from suppliers, at what inventory level should ardmore place another order?

Selected transactions of the carolina company are listed below. classify each transaction as either an operating activity, an investing activity, a financing activity, or a noncash activity. 1. common stock is sold for cash above par value. 2. bonds payable are issued for cash at a discount