Payment Schedule | |||||
Event | Lease | Payment | Interest | Principal | Balance |
Lease 1 | $485,000.00 | $0.00 | $0.00 | $485,000.00 | |
Year 1 | $80,312.07 | $0.00 | $80,312.07 | $404,687.93 | |
Year 2 | $80,312.07 | $40,468.79 | $39,843.28 | $364,844.65 | |
Year 3 | $80,312.07 | $36,484.47 | $43,827.60 | $321,017.05 | |
Year 4 | $80,312.07 | $32,101.71 | $48,210.36 | $272,806.69 | |
Year 5 | $80,312.07 | $27,280.67 | $53,031.40 | $219,775.29 | |
Year 6 | $80,312.07 | $21,977.53 | $58,334.54 | $161,440.75 | |
Year 7 | $80,312.07 | $16,144.08 | $64,167.99 | $97,272.76 | |
Lease Residual | $107,000.00 | $9,727.24 | $97,272.76 | $0.00 | |
Grand Total | $485,000.00 | $669,184.49 | $184,184.49 | $485,000.00 | $0.00 |
NPV = $94007.21 |
*Problem 21-1 information relates to the lease agreement. 1. The term of the lease is 7...
Bramble Leasing Company signs an agreement on January 1, 2017, to lease equipment to Cole Company. The following information relates to this agreement. 1. The term of the noncancelable lease is 6 years with no renewal option. The equipment has an estimated economic life of 6 years. 2. The cost of the asset to the lessor is $268,000. The fair value of the asset at January 1, 2017, is $268,000. 3. The asset will revert to the lessor at the...
Morgan Leasing Company signs an agreement on January 1, 2014, to lease equipment to Cole Company. The following information relates to this agreement. 1. The term of the noncancelable lease is 6 years with no renewal option. The equipment has an estimated economic life of 6 years. 2. The cost of the asset to the lessor is $245,000. The fair value of the asset on January 1, 2014, is $245,000. 3. The asset will revert to the lessor at the...
Bramble Leasing Company signs an agreement on January 1, 2017, to lease equipment to Cole Company. The following information relates to this agreement. 1. The term of the noncancelable lease is 6 years with no renewal option. The equipment has an estimated economic life of 6 years. 2. The cost of the asset to the lessor is $268,000. The fair value of the asset at January 1, 2017, is $268,000. 3. The asset will revert to the lessor at the...
PROBLEMS 8 P21-1 (Lessee- Lessor Entries, Sales-Type Lease) Glaus Leasing Company agrees to lease ma Jensen Corporation on January 1, 2014. The following information relates to the lease agreement. 1. The term of the lease is 7 years with no renenval option, and the machinery has an estimated eco 2. The cost of the machinery is $525,000, and the fair value of the asset on January 1, 2014, is $700,000 of nomic life of 9 years. 3. At the end...
On January 1, 2017, Grouper Company leased equipment to Monty Corporation. The following information pertains to this lease. 1. The term of the noncancelable lease is 6 years, with no renewal option. The equipment reverts to the lessor at the termination of the lease. 2. Equal rental payments are due on January 1 of each year, beginning in 2017. 3. The fair value of the equipment on January 1, 2017, is $184,000, and its cost is $147,200. 4. The equipment...
Exercise 21-10 Sage Leasing Company signs an agreement on January 1, 2017, to lease equipment to Cole Company. The following information relates to this agreement. 1. The term of the noncancelable lease is 6 years with no renewal option. The equipment has an estimated economic life of 6 years. 2. The cost of the asset to the lessor is $277,000. The fair value of the asset at January 1, 2017, is $277,000. 3. The asset will revert to the lessor...
Exercise 21-4 Your answer is partially correct. Try again. Vaughn Leasing Company signs a lease agreement on January 1, 2017, to lease electronic equipment to Bramble Company. The term of the noncancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement: 1. Bramble Company has the option to purchase the equipment for $14,900 upon termination of the lease. 2. The equipment has a cost and fair value of...
Exercise 21-9 (Part Level Submission) The following facts pertain to a noncancelable lease agreement between Swifty Leasing Company and Nash Company, a lessee May 1, 2017 Inception date Annual lease payment due at the beginning of each year, beginning with May 1, 2017 Bargain-purchase option price at end of lease $18,758.38 $3,800 term Lease term Economic life of leased equipment Lessor's cost Fair value of asset at May 1, 2017 Lessor's implicit rate Lessee's incremental borrowing rate 5 years 10...
CALCULATOR Exercise 21-4 Vaughn Leasing Company signs a lease agreement on January 1, 2017, to lease electronic equipment to Bramble Company. The term of the noncancelable case is 2 years, and payments are required at the end of each year. The following information relates to this agreement: 1. Bramble Company has the option to purchase the equipment for $17300 upon termination of the lease 2. The equipment has a cost and fair value of $170,000 to Vaughn Leasing Company. The...
Pearl Leasing Company signs an agreement on January 1, 2017, to lease equipment to Cole Company. The following information relates to this agreement. 1. The term of the noncancelable lease is 6 years with no renewal option. The equipment has an estimated economic life of 6 years. 2. The cost of the asset to the lessor is $311,000. The fair value of the asset at January 1, 2017, is $311,000. 3. The asset will revert to the lessor at the...