amity leases
On January 1, 2019, Amity Company leases a crane to Baltimore Company. The lease contains the following terms and provisions:
• The lease is noncancelable and has a term of 10 years.
• The lease does not contain a renewal or bargain purchase option.
• The annual rentals are $4,050, payable at the beginning of each year.
• Baltimore agrees to pay all executory costs directly to a third party.
• The cost of the equipment to the lessor is $25,173.36. The fair value of the equipment is $26,700.
• Amity incurs initial direct costs of $1,370.46.
• The interest rate implicit in the lease is 12%.
• Amity expects to collect all lease payments from Baltimore.
• Amity estimates that the fair value at the end of the lease term will be $2,840 and that the economic life of the crane is 12 years. This value is not guaranteed by Baltimore.
Prepare the journal entries for Amity for 2019.
Homework Answers
Request Answer!
We need at least 10 more requests to produce the answer.
0 / 10 have requested this problem solution
The more requests, the faster the answer.
On January 1, 2016, Ballieu Company leases specialty equipment with an economic life of 8 years...
On January 1, 2016, Ballieu Company leases specialty equipment with an economic life of 8 years to Anderson Company. The lease contains the following terms and provisions: • The lease is noncancelable and has a term of 8 years. • The annual rentals are $31,000, payable at the beginning of each year. • The interest rate implicit in the lease is 12%. • Anderson agrees to pay all executory costs and is given an option to buy the equipment for...
Lessee Company leases heavy equipment on January 1, 2016, under a capital lease from Lessor Company...
Lessee Company leases heavy equipment on January 1, 2016, under a capital lease from Lessor Company with the following lease provisions: 1. The lease is non-cancelable and has a term of 10 years 2. The lease does not contain a renewal or bargain purchase option 3. The annual rentals are 27,653.77, payable at the beginning of each year. 4. Lessee agrees to pay all executory costs 5. The interest rate implicit in the lease is 12%, which is known by...
On January 1, 2019, Ballieu Company leases specialty equipment with an economic life of 8 years...
On January 1, 2019, Ballieu Company leases specialty equipment with an economic life of 8 years to Anderson Company. The lease contains the following terms and provisions: • The lease is noncancelable and has a term of 8 years. • The annual rentals are $30,400, payable at the beginning of each year. • The interest rate implicit in the lease is 12%. • Anderson agrees to pay all executory costs directly to a third party and is given an option...
Rexon Company leases equipment to Ten-Care Company beginning January 1, 2016. The lease terms, provisions, and...
Rexon Company leases equipment to Ten-Care Company beginning January 1, 2016. The lease terms, provisions, and related events are as follows: 1. The lease term is 8 years. The lease is noncancelable and requires equal rental payments to be made at the end of each year. 2. The cost, and also fair value, of the equipment is $500,000. The equipment has an estimated life of 8 years and has a zero estimated value at the end of that time. 3....
Berne Company (lessor) enters into a lease with Fox Company to lease equipment to Fox beginning...
Berne Company (lessor) enters into a lease with Fox Company to lease equipment to Fox beginning January 1, 2016. The lease terms, provisions, and related events are as follows: 1. The lease term is 4 years. The lease is noncancelable and requires annual rental payments of $50,000 to be made at the end of each year. 2. The equipment costs $130,000. The equipment has an estimated life of 4 years and an estimated residual value at the end of the...
Please help me how to get this answer X 18.7-11a Question Help On January 1, 2019, Precision Pumps leases nonspecialize...
Please help me how to get this answer
X 18.7-11a Question Help On January 1, 2019, Precision Pumps leases nonspecialized pumping equipment to Mega Construction. The equipment is delivered on January 1. The lease term is 4 years with no renewal or purchase options, and title to the leased asset is retained by the lessor at the end of the lease term. The lease requires annual fixed rental payments of $7,000 per year beginning on January 1, 2019, and then...
Executory costs include a) maintenance, interest and property taxes. b) interest, property taxes and depreciation. c)...
Executory costs include a) maintenance, interest and property taxes. b) interest, property taxes and depreciation. c) insurance, maintenance and property taxes. d) maintenance, insurance and income taxes. Which of the following is a correct statement regarding one of the ASPE capitalization criteria? a) The lease transfers ownership of the property to the lessor. b) The lease must contain a bargain purchase option. c) The lease term is 75% or more of the leased property’s estimated economic life. d) The fair...
Timmer Company signs a lease agreement dated January 1, 2019, that provides for it to lease...
Timmer Company signs a lease agreement dated January 1, 2019, that provides for it to lease equipment from Landau Company beginning January 1, 2019. The lease terms, provisions, and related events are as follows: • The lease is noncancelable and has a term of 5 years. • The annual rentals are $83,222.92, payable at the end of each year, and provide Landau with a 12% annual rate of return on its net investment. • Timmer agrees to pay all executory...
PLEASE SHOW THE STEPS Part VI: Lessee and Lessor on January 1, 2019 enter into a...
PLEASE SHOW THE STEPS
Part VI: Lessee and Lessor on January 1, 2019 enter into a 4-year non-cancelable lease, with two renewal options of one year each, for equipment having a useful life of 12 years. Lessee's incremental borrowing rate is 8% while Lessor's implicit rate is 5% and known to Lessee. The Lessee uses the straight-line method of depreciation. The lease contains the following provisions: 1. Annual rental payments of $20,000 payable at the beginning of each year, starting...
Part VI: Lessee and Lessor on January 1, 2019 enter into a 4-year non-cancelable lease, with...
Part VI: Lessee and Lessor on January 1, 2019 enter into a 4-year non-cancelable lease, with two renewal options of one year each, for equipment having a useful life of 12 years. Lessee's incremental borrowing rate is 8% while Lessor's implicit rate is 5% and known to Lessee. The Lessee uses the straight-line method of depreciation. The lease contains the following provisions: 1. Annual rental payments of $20,000 payable at the beginning of each year, starting January 1, 2019. 2....
Please help me how to get this answer
X 18.7-11a Question Help On January 1, 2019, Precision Pumps leases nonspecialized pumping equipment to Mega Construction. The equipment is delivered on January 1. The lease term is 4 years with no renewal or purchase options, and title to the leased asset is retained by the lessor at the end of the lease term. The lease requires annual fixed rental payments of $7,000 per year beginning on January 1, 2019, and then...
PLEASE SHOW THE STEPS
Part VI: Lessee and Lessor on January 1, 2019 enter into a 4-year non-cancelable lease, with two renewal options of one year each, for equipment having a useful life of 12 years. Lessee's incremental borrowing rate is 8% while Lessor's implicit rate is 5% and known to Lessee. The Lessee uses the straight-line method of depreciation. The lease contains the following provisions: 1. Annual rental payments of $20,000 payable at the beginning of each year, starting...
Part VI: Lessee and Lessor on January 1, 2019 enter into a 4-year non-cancelable lease, with two renewal options of one year each, for equipment having a useful life of 12 years. Lessee's incremental borrowing rate is 8% while Lessor's implicit rate is 5% and known to Lessee. The Lessee uses the straight-line method of depreciation. The lease contains the following provisions: 1. Annual rental payments of $20,000 payable at the beginning of each year, starting January 1, 2019. 2....
Most questions answered within 3 hours.
-
A gun with inertia 5.5 kg fires a 13-g bullet at a stationary
target located 1.0...
asked 1 minute from now -
A box contains twenty-five screws which are identical in size,
but 13 of which are copper...
asked 1 minute ago -
“Is it possible that objectively
a product is high quality but subjectively low
quality?”
Please support...
asked 2 minutes ago -
OCHEM LAB
Why does hydration of 2-methyl-3-butyn-2-ol give the ketone,
3-hydroxy-3-methyl-2-butanone (4), rather than the aldehyde,...
asked 12 minutes ago -
A sample of gas at 15 ⁰C and 0.988 atm has a volume of 2.58
liters....
asked 19 minutes ago -
Enzymes are required in retroviruses because the genome
is not used directly as mRNA (T/F)
Please...
asked 17 minutes ago -
An AC generator supplies an rms voltage of 240 V at 50.0 Hz. It
is connected...
asked 30 minutes ago -
Raising taxes on wealthy Americans won’t be enough to deal with the
nation’s budget deficit. Some...
asked 14 minutes ago -
A bacterium (mass = 2.27 x 10−15 kg) in the blood is moving at
0.306 m/s....
asked 16 minutes ago -
look at the Fourth Lateran Council's Canon 18, and argue why a
defendant should not be...
asked 17 minutes ago -
An electron moves at 2.60×106 m/s through a region in
which there is a magnetic field...
asked 28 minutes ago -
Learning aquatic zumba is an example of tacit knowledge. true or
false
asked 48 minutes ago