The following facts pertain to a non-cancelable lease agreement between Ford and NextCar, a lessee.
Lease Origination Date May 1, 2017
Annual lease payments due at the beginning of each lease year $20.471.94
Bargain purchase option price at the end of lease term $4,000
Lease term 5 years
Economic life of leased equipment 10 years
Lessor’s cost $65,000
Fair value of asset on May 1, 2017 $91,000
Fair value of asset on May 1, 2022 $15,000
Lessor implicit rate 8%
Lessee’s incremental borrowing rate 8%
The collectability of the lease payments is probable.
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The following facts pertain to a non-cancelable lease agreement between Ford and NextCar, a lessee. ...
The following facts pertain to a non-cancelable lease agreement between Ford and NextCar, a lessee. Lease Origination Date May 1, 2017 Annual lease payments due at the beginning of each lease year $20.471.94 Bargain purchase option price at the end of lease term $4,000 Lease term 5 years Economic life of leased equipment 10 years Lessor’s cost $65,000 Fair value of asset on May 1, 2017 $91,000 ...
The following facts pertain to a non-cancelable lease agreement between Ford and NextCar, a lessee. Lease Origination Date May 1, 2017 Annual lease payments due at the beginning of each lease year $20.471.94 Bargain purchase option price at the end of lease term $4,000 Lease term 5 years Economic life of leased equipment 10 years Lessor’s cost $65,000 Fair value of asset on May 1, 2017 $91,000 ...
The following facts pertain to a non-cancelable lease agreement between Ford and NextCar, a lessee. Lease Origination Date May 1, 2017 Annual lease payments due at the beginning of each lease year $20.471.94 Bargain purchase option price at the end of lease term $4,000 Lease term 5 years Economic life of leased equipment 10 years Lessor’s cost $65,000 Fair value of asset on May 1, 2017 $91,000 Fair value of asset on May 1, 2022 ...
The following facts pertain to a non-cancelable lease agreement between Ford and NextCar, a lessee. Lease Origination Date May 1, 2017 Annual lease payments due at the beginning of each lease year $20.471.94 Bargain purchase option price at the end of lease term $4,000 Lease term 5 years Economic life of leased equipment 10 years Lessor’s cost $65,000 Fair value of asset on May 1, 2017 $91,000 Fair value of asset on May 1, 2022 ...
The following facts pertain to a non-cancelable lease agreement between Ford and NextCar, a lessee. Lease Origination Date May 1, 2017 Annual lease payments due at the beginning of each lease year $20.471.94 Bargain purchase option price at the end of lease term $4,000 Lease term 5 years Economic life of leased equipment 10 years Lessor’s cost $65,000 Fair value of asset on May 1, 2017 $91,000 Fair value of asset on May 1, 2022 ...
Problem 3: The following facts pertain to a non-cancelable lease agreement between Lessee and Lessor: Date of the lease 12/31/YO Annual lease payment Payment 1 due immediately) $20,472 Bargain Purchase Option (lessee expects to exercise) $4,000 Lease Term 5 years Economic Life of Leased Asset 10 years Lessor's Cost of the asset $65,000 Fair Value of the asset $91.000 Lessor's Implicit Rate & Lessee's Incremental Borrowing Rate The collectability of the lease payments by Lessor is probable. A. For the...
The following facts pertain to a non-cancelable lease agreement between Sheridan Leasing Company and Skysong Company, a lessee. Commencement date May 1, 2020 Annual lease payment due at the beginning of each year, beginning with May 1, 2020 $15,349.90 Bargain purchase option price at end of lease term $6,000 Lease term 5 years Economic life of leased equipment 10 years Lessor’s cost $65,000 Fair value of asset at May 1, 2020 $76,000 Lessor’s implicit rate 4 % Lessee’s incremental borrowing...
Assume that the following facts pertain to a non-cancelable lease agreement between Coco Inc. and Bubs Corp, a Lessee. Inception date January 1, 2018 Residual value of equipment at end of lease term, unguaranteed $100,000 Lease term 6 years Economic life of leased equipment 8 years Fair value of asset at January 1, 2017 $800,000 Lessor’s implicit rate 12% Lessee’s incremental borrowing rate 10% The lessee assumes responsibility for all executory costs, which are expected to amount to $4,000 per...
(LESSEE ENTRIES FOR FINANCING LEASE). The following facts pertain to a non-cancelable lease agreement between Ace Leasing Company and King Company, a lessee. Commencement of Lease Date January 1, 2020 Annual lease payment due at the beginning of the year beginning with January 1, 2020 $137,171 Residual value of equipment at end of lease term, guaranteed by lessee $54,000 Expected residual of equipment that will need to be paid in cash at end of lease term $49,000 Lease term 6...
Problem 1: The following facts pertain to a non-cancelable lease agreement between Lessee and Lessor: Date of the Lease 12/31/Yro Annual lease payment (Payment 1 due immediately) (Present Value =$6,684) $2,338 Guaranteed Residual Value (Lessee expects to meet) (Present Value $1,316) $1,523 Lease Term 3 years Economic Life of Leased Asset 5 years Lessor's Cost of the asset $6,000 Fair Value of the asset $8,000 Lessor's Implicit Rate & Lessee's Incremental Borrowing Rate The collectability of the lease payments by...