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
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.
- What type of lease is this and why?
- Prepare a lease amortization schedule for NextCar for the 5-year term.
- Prepare the journal entries on the lessee’s book to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2017 and 2018. NextCar has an April 30th year end.
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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. ...
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. ...
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 ...
What type of lease is this and why? Prepare a lease amortization schedule for NextCar for the 5-year term.
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 ...
Prepare a lease amortization schedule for NextCar for the 5-year term.
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 ...
What type of lease is this and why?.Prepare the journal entries on the lessee’s book to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2017 and 2018
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...
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,...
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...
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...
(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...
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...
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...
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...
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