Maxwell Company has just signed a capitalizable lease contract for equipment that requires rental payments of $6,000 each, to be paid at the end of each of the next 6 years. The company's discount rate is 9%. What is the amount used to capitalize the leased equipment (i.e. the present value of the lease payments)?
Amount used to capitalize the leased Equipment = $26,915.40
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Maxwell Company has just signed a capitalizable lease contract for equipment that requires rental payments of...
Silverberg Company has just signed a capitalizable lease contract for equipment that requires rental payments of $12,000 each, to be paid at the end of each of the next 4 years. The company's discount rate is 10%. What is the amount used to capitalize the leased equipment (i.e. the present value of the lease payments)?
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Pharoah Company has purchased equipment that requires annual payments of $85000 to be paid at the end of each of the next 5 years. The appropriate discount rate is 6%. What amount will be used to record the equipment? • $425000 O $358051 $410772 $360650
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Question 6 Ludwick Steel Company, as lessee, signed a lease agreement for equipment for 5 years, beginning December 31, 2020. Annual rental payments of $40,000 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%; Ludwick's incremental borrowing rate is 8%. Ludwick is unaware of the rate being used by the lessor. At the end of the lease, Ludwick has the option to...
Question 2 of 5 A contract requires lease payments of $800 at the beginning of every month for 10 years. a. What is the present value of the contract if the lease rate is 5.94% compounded annually? $0.00 Round to the nearest cent b. What is the present value of the contract if the lease rate is 5.94% compounded daily? Round to the nearest cent Submit Question Next Question
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...
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