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Homework Answers
| Annual payments | 304152 |
| X PV annuity due 8%, 4 periods | 3.57710 |
| Lease liability to be recorded | 1087982 |
| Lease liability to be recorded | 1087982 |
| Less: Lease payment made at inception | 304152 |
| Lease liability at the end of first year | 783830 |
| X Interest rate | 8% |
| Interest expense in the first year | 62706 |
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Blossom, Inc. leased equipment from Tower Company under a 4-year...
Blossom, Inc. leased equipment from Tower Company under a 4-year lease requiring equal annual payments of...
Blossom, Inc. leased equipment from Tower Company under a 4-year lease requiring equal annual payments of $324152, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4-year useful life and no salvage value. Blossom, Inc.'s incremental borrowing rate is 11% and the rate implicit in the lease (which is known by Blossom, Inc.) is 8%. Assuming that this lease is properly classified as a...
Cullumber, Inc. leased equipment from Tower Company under a 4-year lease requiring equal annual payments of...
Cullumber, Inc. leased equipment from Tower Company under a 4-year lease requiring equal annual payments of $354152, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4 year useful life and no salvage value. Cullumber, Inc.’s incremental borrowing rate is 11% and the rate implicit in the lease (which is known by Cullumber, Inc.) is 9%. Assuming that this lease is properly classified as...
Carla Vista, Inc. leased equipment from Tower Company under a 4-year lease requiring equal annual payments...
Carla Vista, Inc. leased equipment from Tower Company under a
4-year lease requiring equal annual payments of $414152, with the
first payment due at lease inception. The lease does not transfer
ownership, nor is there a bargain purchase option. The equipment
has a 4 year useful life and no salvage value. Carla Vista, Inc.’s
incremental borrowing rate is 11% and the rate implicit in the
lease (which is known by Carla Vista, Inc.) is 9%. Assuming that
this lease is...
Sandhill, Inc. leased equipment from Tower Company under a 4-year lease requiring equal annual payments of...
Sandhill, Inc. leased equipment from Tower Company under a 4-year lease requiring equal annual payments of $304152, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4-year useful life and no salvage value. Sandhill, Inc.’s incremental borrowing rate is 10% and the rate implicit in the lease (which is known by Sandhill, Inc.) is 7%. Assuming that this lease is properly classified as a...
es Lase 4.0373 sor- S C Study Guide Problems dot, face Peray leas- teras GELMthod Chapter...
es Lase 4.0373 sor- S C Study Guide Problems dot, face Peray leas- teras GELMthod Chapter 21 Problem treet Figkas Johnson, Inc. leased equipment from Broadway Company under a five-year vees les requiring equal annual payments of $360,000 with the first payment due at easeless inception. The lease does not transfer ownership nor is there a bargain purname option. The equipment has a 5-year useful life and no salvage value. Johnson.no . incremental borrowing rate is 12% and the rate...
Diablo Company leased a machine from Juniper Corporation on January 1, 2018. The machine has a...
Diablo Company leased a machine from Juniper Corporation on January 1, 2018. The machine has a fair value of $21,900,000. The lease agreement calls for four equal payments at the end of each year. The useful life of the machine was expected to be four years with no residual value. The appropriate interest rate for this lease is 8%. Other information: PV of an ordinary annuity @8% for 4 periods: 3.31213 PV of an annuity due @ 8% for 4...
please show all work Derozan Corp. manufactured equipment at a cost of $313,790 and leased it...
please show all work Derozan Corp. manufactured equipment at a cost of $313,790 and leased it to B Corp. on January 1, 2019 for an eight-year period expiring December 31, 2026. The asset’s economic life is 10 years. Equal payments under the lease are $58,090 and are due on January 1 of each year. The first payment was made on January 1, 2019. The implicit rate used by Derozan is 8%. Additional information: Present value of an annuity due of...
please answer 14. On January 1, 2018 Balsam Inc. leased an asset that had a useful...
please answer
14. On January 1, 2018 Balsam Inc. leased an asset that had a useful life of 8 years. The lease requires Balsam make five annual payments of $13,000 beginning January 1, 2018. At the end of the lease term, December 31, 2022, Balsam has the option to purchase the asset at a bargain price of $10,000. The interest rate implicit in the lease is 9%. Present value factors for the 9% rate implicit in the lease are as...
. Northwestern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2020. Hi-Tech manufactured the...
. Northwestern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2020. Hi-Tech manufactured the equipment at a cost of $110,000. Other information: Lease term 3 years Annual payments $50,000 on January 1 each year Life of asset 3 years Implicit interest rate 8% Incremental rate 8% PV, annuity due, 3 periods, 8% 2.7833 PV, ordinary annuity, 3 periods, 8% 2.5771 There is no expected residual value. Required: Prepare appropriate journal entries for Hi-Tech Leasing for 2020 and 2021....
On January 1, 2017, Sunland Company leased equipment to Flynn Corporation. The following information pertains to...
On January 1, 2017, Sunland Company leased equipment to Flynn
Corporation. The following information pertains to this
lease:
1.
The term of the non-cancelable lease is 6 years. At the end of
the lease term, Flynn has the option to purchase the equipment for
$2,000, while the expected residual value at the end of the lease
is $5,000.
2.
Equal rental payments are due on January 1 of each year,
beginning in 2017.
3.
The fair value of the equipment...
Blossom, Inc. leased equipment from Tower Company under a 4-year lease requiring equal annual payments of $324152, with the first payment due at lease inception. The lease does not transfer ownership, nor is there a bargain purchase option. The equipment has a 4-year useful life and no salvage value. Blossom, Inc.'s incremental borrowing rate is 11% and the rate implicit in the lease (which is known by Blossom, Inc.) is 8%. Assuming that this lease is properly classified as a...
Carla Vista, Inc. leased equipment from Tower Company under a
4-year lease requiring equal annual payments of $414152, with the
first payment due at lease inception. The lease does not transfer
ownership, nor is there a bargain purchase option. The equipment
has a 4 year useful life and no salvage value. Carla Vista, Inc.’s
incremental borrowing rate is 11% and the rate implicit in the
lease (which is known by Carla Vista, Inc.) is 9%. Assuming that
this lease is...
es Lase 4.0373 sor- S C Study Guide Problems dot, face Peray leas- teras GELMthod Chapter 21 Problem treet Figkas Johnson, Inc. leased equipment from Broadway Company under a five-year vees les requiring equal annual payments of $360,000 with the first payment due at easeless inception. The lease does not transfer ownership nor is there a bargain purname option. The equipment has a 5-year useful life and no salvage value. Johnson.no . incremental borrowing rate is 12% and the rate...
please answer
14. On January 1, 2018 Balsam Inc. leased an asset that had a useful life of 8 years. The lease requires Balsam make five annual payments of $13,000 beginning January 1, 2018. At the end of the lease term, December 31, 2022, Balsam has the option to purchase the asset at a bargain price of $10,000. The interest rate implicit in the lease is 9%. Present value factors for the 9% rate implicit in the lease are as...
On January 1, 2017, Sunland Company leased equipment to Flynn
Corporation. The following information pertains to this
lease:
1.
The term of the non-cancelable lease is 6 years. At the end of
the lease term, Flynn has the option to purchase the equipment for
$2,000, while the expected residual value at the end of the lease
is $5,000.
2.
Equal rental payments are due on January 1 of each year,
beginning in 2017.
3.
The fair value of the equipment...
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