Annual Lease payment = Fair value of asset /PVAIF for 3 years | ||||
=$85500/2.57710 | ||||
=$33177 | ||||
Amortization schedule | ||||
Date | Receipt / Payment | Interest Revenue / Expenses | Reduction Of Principal | Recoverable / Liability |
01-01-2020 | $ - | $ - | $ - | $ 85,500 |
12/31/2020 | $ 33,177 | $ 6,840 | $ 26,337 | $ 59,163 |
12/31/2021 | $ 33,177 | $ 4,733 | $ 28,444 | $ 30,719 |
12/31/2022 | $ 33,177 | $ 2,458 | $ 30,719 | $ -0 |
Crane Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of...
Crane Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65,000 and fair value of $91,000. Under the 3-year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1 2017, Crane expects to eam an 8% return on its investment, and this ımplicit rate is known by Sharrer. The annual rentals...
Carla Vista Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65,000 and fair value of $89,000. Under the 3-year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2020. Carla Vista expects to earn an 8% return on its investment, and this implicit rate is known by Sharrer. The...
Blossom Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65,000 and fair value of $90,500. Under the 3-year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2020. Blossom expects to earn an 8% return on its investment, and this implicit rate is known by Sharrer. The annual rentals...
Exercise 21-07 b-e Carla Vista Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65,000 and fair value of $94,500. Under the 3-year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2020. Carla Vista expects to earn an 8% return on its investment, and this implicit rate is known...
Exercise 21A-7 b-e Carla Vista Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65,000 and fair value of $94,500. Under the 3-year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2017. Carla Vista expects to earn an 8% return on its investment, and this implicit rate is known...
Sheridan Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65,000 and fair value of $88,000. Under the 3-year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2017. Sheridan expects to earn an 8% return on its investment, and this implicit rate is known by Sharrer. The annual rentals...
Wildhorse Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65,000 and fair value of $95,500. Under the 3-year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2020. Wildhorse expects to earn an 8% return on its investment, and this implicit rate is known by Sharrer. The annual rentals...
Exercise 21-5 Waterway Leasing Company leases a new machine that has a cost and fair value of $87,000 to Sharrer Corporation on a 3-year noncancelable contract. Sharrer Corporation agrees to assume all risks of normal ownership including such costs as insurance, taxes, and maintenance. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2017. Waterway Leasing Company expects to earn a 10% return on its investment. The annual rentals are payable...
Exercise 21-5 Waterway Leasing Company leases a new machine that has a cost and fair value of $87,000 to Sharrer Corporation on a 3-year noncancelable contract. Sharrer Corporation agrees to assume all risks of normal ownership including such costs as insurance, taxes, and maintenance. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2017. Waterway Leasing Company expects to earn a 10% return on its investment. The annual rentals are payable...
Exercise 21-5 Your answer is partially correct. Try again. Coronado Leasing Company leases a new machine that has a cost and fair value of $72,000 to Sharrer Corporation on a 3-year noncancelable contract. Sharrer Corporation agrees to assume all risks of normal ownership including such costs as insurance, taxes, and maintenance. The machine has a 3-year useful life and no residual value. The lease was signed on January 1, 2017. Coronado Leasing Company expects to earn a 9% return on...