Assume Sunny Corp

question 55

Multiple Choice

Assume Sunny Corp.(a company reporting under IFRS) wants to earn an 8% return on its investment of $1,200,000 in an asset that is to be leased to Cloudy Corp.for ten years with an annual rental due in advance each year.How much should Sunny charge for annual rental assuming there is no purchase option that is reasonably certain to be exercised by Cloudy Corp.?

• A)$120,000
• B)$165,588
• C)$178,835
• D)$216,000

Comprehend internal and external auditing as mechanisms for organizational control.

Understand the principles of Total Quality Management (TQM) and its application in organizational contexts.

Recognize the importance of crisis management in organizations.

Learn about service quality dimensions and their significance in customer satisfaction.

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Definitions:

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue; a key indicator of financial health.

Dividends

Profits distributed by a corporation to its share owners, regularly as a monetary payment.

Equity Method

An accounting technique used to assess the profits earned by investments in other companies, recognizing income based on the investor's share of the earnings.

Amortizations

The act of spreading out loan payments over a period of time, including both the principal and the interest.