Computation of Annual Rental Payment | |
Fair Value | $648,000 |
Less:
Residual Value ( 103000X Pvif @ 11% at 7 yea) (10300X 0.481658) |
-$49,611 |
Amount to be recovered a) | $598,389 |
CUMM PVF @ 11% for 0-6 (b) | 5.23054 |
Annual Rental Payment (a/b) | $114,403 |
Problem 21A-6 b-f (Part Level Submission) Pina Leasing Company agrees to lease equipment to Grouper Corporation...
Question 4 Glaus Leasing Company agrees to lease equipment to Jensen Corporation on January 1, 2020. The following information relates to the lease agreement. 1. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years. 2. The cost of the machinery is $525,000, and the fair value of the asset on January 1, 2020, is $700,000. 3. At the end of the lease term, the asset reverts...
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Sage Leasing Company agrees to lease equipment to Pronghorn Corporation on January 1, 2020. The following information relates to the lease agreement 1. 2. 3 The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years. The cost of the machinery is $518,000, and the fair value of the asset on January 1, 2020, is $648,000. At the end of the lease term, the...
Pharoah Leasing Company agrees to lease equipment to Novak
Corporation on January 1, 2020. The following information relates
to the lease agreement.
1.
The term of the lease is 7 years with no renewal option, and
the machinery has an estimated economic life of 9 years.
2.
The cost of the machinery is $525,000, and the fair value of
the asset on January 1, 2020, is $713,000.
3.
At the end of the lease term, the asset reverts to the...
Buffalo Leasing Company agrees to lease equipment to Carla Corporation on January 1, 2017. The following information relates to the lease agreement. 1. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years. 2. The cost of the machinery is $525,000, and the fair value of the asset on January 1, 2017, is $713,000. 3. At the end of the lease term, the asset reverts to the...
Carla Leasing Company agrees to lease equipment to Sarasota
Corporation on January 1, 2020.
The term of the lease is 7 years with no renewal option, and the
machinery has an estimated economic life of 9 years. The cost of
the machinery is $541,000, and the fair value of the asset on
January 1, 2020, is $760,000. At the end of the lease term, the
asset reverts to the lessor and has a guaranteed residual value of
$45,000. Sarasota estimates...
Cullumber Leasing Company agrees to lease equipment to Riverbed Corporation on January 1, 2020. The following information relates to the lease agreement. 1. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years. 2. The cost of the machinery is $523,000, and the fair value of the asset on January 1, 2020, is $758,000. 3. At the end of the lease term, the asset reverts to the...
Sheridan Leasing Company agrees to lease equipment to Skysong Corporation on January 1, 2020. The following information relates to the lease agreement. 1. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years. 2. The cost of the machinery is $489,000, and the fair value of the asset on January 1, 2020, is $699,000. 3. At the end of the lease term, the asset reverts to the...
Cullumber Leasing Company agrees to lease equipment to Riverbed Corporation on January 1, 2020. The following information relates to the lease agreement. 1. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years. 2. The cost of the machinery is $523,000, and the fair value of the asset on January 1, 2020, is $758,000. 3. At the end of the lease term, the asset reverts to the...
Tamarisk Leasing Company agrees to lease equipment to Vaughn Corporation on January 1, 2020. The following information relates to the lease agreement. 1. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years. 2. The cost of the machinery is $541,000, and the fair value of the asset on January 1, 2020, is $760,000. 3. At the end of the lease term, the asset reverts to the...