![Brief Exercise 15-9 (Algo) Operating lease (LO15-4] At the beginning of its fiscal year, Lakeside Inc. leased office space to](http://img.homeworklib.com/questions/45a9e5e0-14e2-11eb-bbd8-87159e439a0c.png?x-oss-process=image/resize,w_560)
Homework Answers
Answer:-
| Quarterly rent payments received | 168000 | =42000*4 |
| Less: Depreciation expense | 148000 | =3700000/25 |
| Lakeside increases its earnings by | 316000 |
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Brief Exercise 15-9 (Algo) Operating lease (LO15-4] At the beginning of its fiscal year, Lakeside Inc....
At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under...
At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under a twelve-year operating lease agreement. The contract calls for quarterly rent payments of $34,000 each. The office building was acquired by Lakeside at a cost of $2.9 million and was expected to have a useful life of 25 years with no residual value. What will be the effect of the lease on Lakeside's earnings for the first year (ignore taxes)? (Enter your answer in...
At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under...
At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under a ten-year operating lease agreement. The contract calls for quarterly rent payments of $40,000 each. The office building was acquired by Lakeside at a cost of $3.5 million and was expected to have a useful life of 35 years with no residual value. What will be the effect of the lease on Lakeside's earnings for the first year (ignore taxes)? (Enter your answer in...
At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under...
At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under a ten-year operating lease agreement. The contract calls for quarterly rent payments of $43,000 each. The office building was acquired by Lakeside at a cost of $3.8 million and was expected to have a useful life of 25 years with no residual value. What will be the effect of the lease on LTT's earnings for the first year (ignore taxes)? (Enter your answer in...
At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under...
At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under a nine-year operating lease agreement. The contract calls for quarterly rent payments of $45,000 each. The office building was acquired by Lakeside at a cost of $4.0 million and was expected to have a useful life of 25 years with no residual value. What will be the effect of the lease on LTT's earnings for the first year (ignore taxes)? (Enter your answer in...
Exercise 15-14 (Algo) Lessor; operating lease; effect on financial statements [LO 15-4) At January 1, 2021,...
Exercise 15-14 (Algo) Lessor; operating lease; effect on financial statements [LO 15-4) At January 1, 2021, Café Med leased restaurant equipment from Crescent Corporation under a nine-year lease agreement. The lease agreement specifies annual payments of $33,000 beginning January 1, 2021, the beginning of the lease, and at each December 31 thereafter through 2028. The equipment was acquired recently by Crescent at a cost of $252,000 (its fair value) and was expected to have a useful life of 13 years...
Chapter 15 Homework i Saved Help Save & Exit Submit Brief Exercise 15-5 (Algo) Finance lease...
Chapter 15 Homework i Saved Help Save & Exit Submit Brief Exercise 15-5 (Algo) Finance lease lessee income statement effects (LO15-2] 2 A lease agreement that qualifies as a finance lease calls for annual lease payments of $20,000 over a five-year lease term (also the asset's useful life), with the first payment at January 1, 2021, the beginning of the lease. The interest rate is 5%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of...
Exercise 15-14 (Algo) Lessor; operating lease; effect on financial statements [LO 15-4] At January 1, 2021,...
Exercise 15-14 (Algo) Lessor; operating lease; effect on financial statements [LO 15-4] At January 1, 2021, Café Med leased restaurant equipment from Crescent Corporation under a nine-year lease agreement. The lease agreement specifies annual payments of $33,000 beginning January 1, 2021, the beginning of the lease, and at each December 31 thereafter through 2028. The equipment was acquired recently by Crescent at a cost of $252,000 (its fair value) and was expected to have a useful life of 13 years...
Exercise 15-35 (Algo) Lessor's initial direct costs; sales-type lease (LO15-3, 15-7) The lease agreement and related...
Exercise 15-35 (Algo) Lessor's initial direct costs; sales-type lease (LO15-3, 15-7) The lease agreement and related facts indicate the following: a. Leased equipment had a retail cash selling price of $400,000. Its useful life was six years with no residual value. b. The lease term was six years and the lessor paid $315,000 to acquire the equipment (thus, selling profit). c. Lessor's implicit rate when calculating annual lease payments was 8%. d. Annual lease payments beginning January 1, 2021, the...
Brief Exercise 15-6 Sales-type lease; lessor, income statement effects [LO15-3) A lease agreement that qualifies as...
Brief Exercise 15-6 Sales-type lease; lessor, income statement effects [LO15-3) A lease agreement that qualifies as a finance lease calls for annual lease payments of $20,000 over a five-year lease term (also the asset's useful life), with the first payment at January 1, 2016, the beginning of the lease. The interest rate is 4%. The lessor's fiscal year is the calendar year. The lessor manufactured this asset at a cost of $80,000. (FV of $1. PV of $1 EVA of...
Brief Exercise 15-3 (Algo) Lessee and lessor; calculate interest; finance/sales-type lease (LO15-2] A finance lease agreement...
Brief Exercise 15-3 (Algo) Lessee and lessor; calculate interest; finance/sales-type lease (LO15-2] A finance lease agreement calls for quarterly lease payments of $6,809 over a 10-year lease term, with the first payment on July 1, the beginning of the lease. The annual interest rate is 8%. Both the present value of the lease payments and the cost of the asset to the lessor are $190,000. Required: a. Prepare a partial amortization table up to the October 1 payment. b. What...
At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under a twelve-year operating lease agreement. The contract calls for quarterly rent payments of $34,000 each. The office building was acquired by Lakeside at a cost of $2.9 million and was expected to have a useful life of 25 years with no residual value. What will be the effect of the lease on Lakeside's earnings for the first year (ignore taxes)? (Enter your answer in...
At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under a ten-year operating lease agreement. The contract calls for quarterly rent payments of $40,000 each. The office building was acquired by Lakeside at a cost of $3.5 million and was expected to have a useful life of 35 years with no residual value. What will be the effect of the lease on Lakeside's earnings for the first year (ignore taxes)? (Enter your answer in...
At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under a ten-year operating lease agreement. The contract calls for quarterly rent payments of $43,000 each. The office building was acquired by Lakeside at a cost of $3.8 million and was expected to have a useful life of 25 years with no residual value. What will be the effect of the lease on LTT's earnings for the first year (ignore taxes)? (Enter your answer in...
At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under a nine-year operating lease agreement. The contract calls for quarterly rent payments of $45,000 each. The office building was acquired by Lakeside at a cost of $4.0 million and was expected to have a useful life of 25 years with no residual value. What will be the effect of the lease on LTT's earnings for the first year (ignore taxes)? (Enter your answer in...
Exercise 15-14 (Algo) Lessor; operating lease; effect on financial statements [LO 15-4) At January 1, 2021, Café Med leased restaurant equipment from Crescent Corporation under a nine-year lease agreement. The lease agreement specifies annual payments of $33,000 beginning January 1, 2021, the beginning of the lease, and at each December 31 thereafter through 2028. The equipment was acquired recently by Crescent at a cost of $252,000 (its fair value) and was expected to have a useful life of 13 years...
Chapter 15 Homework i Saved Help Save & Exit Submit Brief Exercise 15-5 (Algo) Finance lease lessee income statement effects (LO15-2] 2 A lease agreement that qualifies as a finance lease calls for annual lease payments of $20,000 over a five-year lease term (also the asset's useful life), with the first payment at January 1, 2021, the beginning of the lease. The interest rate is 5%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of...
Exercise 15-35 (Algo) Lessor's initial direct costs; sales-type lease (LO15-3, 15-7) The lease agreement and related facts indicate the following: a. Leased equipment had a retail cash selling price of $400,000. Its useful life was six years with no residual value. b. The lease term was six years and the lessor paid $315,000 to acquire the equipment (thus, selling profit). c. Lessor's implicit rate when calculating annual lease payments was 8%. d. Annual lease payments beginning January 1, 2021, the...
Brief Exercise 15-6 Sales-type lease; lessor, income statement effects [LO15-3) A lease agreement that qualifies as a finance lease calls for annual lease payments of $20,000 over a five-year lease term (also the asset's useful life), with the first payment at January 1, 2016, the beginning of the lease. The interest rate is 4%. The lessor's fiscal year is the calendar year. The lessor manufactured this asset at a cost of $80,000. (FV of $1. PV of $1 EVA of...
Brief Exercise 15-3 (Algo) Lessee and lessor; calculate interest; finance/sales-type lease (LO15-2] A finance lease agreement calls for quarterly lease payments of $6,809 over a 10-year lease term, with the first payment on July 1, the beginning of the lease. The annual interest rate is 8%. Both the present value of the lease payments and the cost of the asset to the lessor are $190,000. Required: a. Prepare a partial amortization table up to the October 1 payment. b. What...
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