Presented below are four independent situations.
(Round answers to 0 decimal places, e.g. 125. If answer
is 0, please enter 0. Do not leave any fields
blank.)
(a) On December 31, 2017, Sarasota Inc. sold
computer equipment to Daniell Co. and immediately leased it back
for 10 years. The sales price of the equipment was $517,100, its
carrying amount is $398,400, and its estimated remaining economic
life is 12 years. Determine the amount of deferred revenue to be
reported from the sale of the computer equipment on December 31,
2017.
The amount of deferred revenue to be reported | $enter the amount of deferred
revenue to be reported rounded to 0 decimal places
|
(b) On December 31, 2017, Ivanhoe Co. sold a
machine to Cross Co. and simultaneously leased it back for one
year. The sales price of the machine was $478,700, the carrying
amount is $420,600, and it had an estimated remaining useful life
of 14 years. The present value of the rental payments for the one
year is $34,800. At December 31, 2017, how much should Ivanhoe
report as deferred revenue from the sale of the machine?
The amount of deferred revenue to be reported | $enter the amount of deferred
revenue to be reported rounded to 0 decimal places
|
(c) On January 1, 2017, Shamrock Corp. sold an
airplane with an estimated useful life of 10 years. At the same
time, Shamrock leased back the plane for 10 years. The sales price
of the airplane was $498,300, the carrying amount $376,200, and the
annual rental $74,583. Shamrock Corp. intends to depreciate the
leased asset using the sum-of-the-years’-digits depreciation
method. How much gain on the sale should be reported at the end of
2017 in the financial statements?
The gain on the sale should be reported | $enter the amount of the gain
on the sale that should be reported rounded to 0 decimal places
|
(d) On January 1, 2017, Bridgeport Co. sold
equipment with an estimated useful life of 5 years. At the same
time, Bridgeport leased back the equipment for 2 years under a
lease classified as an operating lease. The sales price (fair
value) of the equipment was $212,400, the carrying amount is
$302,200, the monthly rental under the lease is $6,000, and the
present value of the rental payments is $116,706. For the year
ended December 31, 2017, determine which items would be reported on
its income statement for the sale-leaseback transaction.
$enter a dollar amount of
gain or loss
|
select between Gain and Loss
|
|
---|---|---|
$enter a dollar amount
|
select an expense type
|
Answer to Q-(a) | |||||||
Answer | |||||||
The amount of deferred revenue to be reported | $118700 | ||||||
Answer to Q-(b) | |||||||
The amount of deferred revenue to be reported | $0 | ||||||
Answer to Q-(c) | |||||||
The gain on the sale should be reported | $12210 | ||||||
Answer to Q-(d) | |||||||
$89800 | Loss | ||||||
|
|||||||
$6000 | Rent Expense | ||||||
|
|||||||
Main calculation for Answer to Q-(a) | |||||||
Answer in US$ | |||||||
Sale Price |
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|
||||||
Carrying amount | 398400 | ||||||
Deferred Revenue | 118700 | ||||||
Main calculation for Answer to Q-(c) | |||||||
Sale price | 498300 | ||||||
Carrying amt | 376200 | ||||||
122100 | |||||||
Lease period | 10 years | ||||||
Answer | 12210 | ||||||
Main calculation for Answer to Q-(d) | |||||||
Sale price/FV | 212400 | ||||||
Carrying amt | 302200 | ||||||
Loss | -89800 | ||||||
Monthly rent | 6000 |
Presented below are four independent situations. (Round answers to 0 decimal places, e.g. 125. If answer...
Presented below are four independent situations.
(Round answers to 0 decimal places, e.g. 125. If answer
is 0, please enter 0. Do not leave any fields
blank.)
(a) On December 31, 2017, Concord Inc. sold
computer equipment to Daniell Co. and immediately leased it back
for 10 years. The sales price of the equipment was $521,500, its
carrying amount is $403,700, and its estimated remaining economic
life is 12 years. Determine the amount of deferred revenue to be
reported from...
*E 21-16 (L05) (Lessee-Lessor, Sale-Leaseback) The following are four independent situations. (a) On December 31, 2017, Zarle Inc. sold computer equipment to Daniell Co. and immediately leased it back for 10 years. The sales price of the equipment was $520,000, its carrying amount is $400,000, and its estimated remaining economic life is 12 years. Determine the amount of deferred revenue to be reported from the sale of the computer equipment on December 31, 2017. (b) On December 31, 2017, Wasicsko...
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Presented below are five independent situations. All the companies involved use ASPE, unless otherwise noted.1. On December 31, 2020, Zarle Inc. sold equipment to Orfanakos Corp. and immediately leased it back for 10 years. The equipment’s selling price was $520,000, its carrying amount was $400,000, and its estimated remaining economic life was 12 years.2. On December 31, 2020, Tessier Corp. sold a machine to Cross Ltd. and simultaneously leased it back for one year. The machine’s selling price was $480,000, its carrying amount was...
Shamrock Steel Company, as lessee, signed a lease agreement for equipment for 5 years, beginning December 31, 2017. Annual rental payments of $56,000 are to be made at the beginning of each lease year (December 31). The interest rate used by the lessor in setting the payment schedule is 6%; Shamrock’s incremental borrowing rate is 8%. Shamrock is unaware of the rate being used by the lessor. At the end of the lease, Shamrock has the option to buy the...
On December 31, 2021, Company A sold equipment to Company B and simultaneously leased it back for one year. The sales price for the equipment was $476. The carrying amount of the equipment was $439. The present value of the lease payments ($4,000 for 12 months at 6%) is $46,708. The equipment has an estimated remaining useful life of ten years. In Company A's December 31, 2021, income statement, the gain from the sale of this machine should be?
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On December 31, 2021, Company A sold equipment to Company B and simultaneously leased it back for one year. The sales price for the equipment was $484. The carrying amount of the equipment was $428. The present value of the lease payments ($4,000 for 12 months at 6%) is $46,708. The equipment has an estimated remaining useful life of ten years. In Company A's December 31, 2021, income statement, the gain from the sale of this machine should be?
Please assist with answering the correct Account titles and
figures in red! Please show all work! Thank you!
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Please help with finding the right account titles!
Brief Exercise 21A-7 Your answer is partially correct. Try again. Windsor Corporation recorded a right-of-use asset for S240 300 as a result of a finance lease on December 31, 2016. Windsor's incremental borrowing rate is 13%, and the implicit rate of the lessor was not known at the commencement of the lease. Windsor made the first lease payment of $41,440 on on December 31, 2016. The lease requires 9 annual payments. The...
On January 1, 2017, Sheffield Company contracts to lease
equipment for 5 years, agreeing to make a payment of $109,913 at
the beginning of each year, starting January 1, 2017. The leased
equipment is to be capitalized at $466,000. The asset is to be
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