Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2013....
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Technoid Inc. sells computer systems. Technoid leases computers to Lone Star Company on January 1, 2013. The manufacturing cost of the computers was $19 million. |
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This non-cancelable lease had the following terms: |
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Lease payments: $2,617,769 semiannually; first payment at January 1, 2013; remaining payments at June 30 and December 31 each year through June 30, 2017. |
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Lease term: 5 years (10 semi-annual payments) |
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No residual value; no bargain purchase option |
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Economic life of equipment: 5 years |
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Implicit interest rate and lessee's incremental borrowing rate: 3% semi-annually |
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Fair value of the computers at January 1, 2013: $23 million |
| Collectibility of the rental payments is reasonably assured, and there are no lessor costs yet to be incurred. |
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What is the net carrying value of the lease liability in Lone Star's June 30, 2013 balance sheet? (Round your answer to the nearest dollar.) |
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Technoid Inc. sells computer systems. Technoid leases computers
to Lone Star Company on January 1, 2013....
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