On December 31, 2019, Sheridan Company leased machinery from Terminator Corporation for an agreed upon lease term of 3 years. Sheridan agreed to make annual lease payments of $16,000, beginning on December 31, 2019. The expected residual value of the machinery at the end of the lease term is $8,000. Sheridan guarantees a residual value of $8,000 at the end of the lease term, which equals the expected residual value of the machinery. What amount will Sheridan record as its lease liability if the expected residual value at the end of the lease term is $5,000 and Sheridan guarantees a residual of $8,000. Its incremental borrowing rate is 4% and the implicit rate of the lease is unk

The monthly demand equation for an electric utility company is estimated to be p equals 60 minus left parenthesis 10 superscript negative 5 baseline right parenthesis x, where p is measured in dollars and x is measured in thousands of killowatt-hours. the utility has fixed costs of $3 comma 000 comma 000 per month and variable costs of $32 per 1000 kilowatt-hours of electricity generated, so the cost function is upper c left parenthesis x right parenthesis equals 3 times 10 superscript 6 baseline plus 32 x. (a) find the value of x and the corresponding price for 1000 kilowatt-hours that maximize the utility's profit. (b) suppose that the rising fuel costs increase the utility's variable costs from $32 to $38, so its new cost function is upper c 1 left parenthesis x right parenthesis equals 3 times 10 superscript 6 baseline plus 38 x. should the utility pass all this increase of $6 per thousand kilowatt-hours on to the consumers?