Homework Answers
| Amortization of right-of-use asset | 750000*10% | 75,000 |
| 75000*2 | 150,000 | |
| Balance in the right-of-use asset after 2 years = | 750000-150000 | |
| 600,000 | ||
| Ans Option C | $600,000 |
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$750,000 in a 10-year finance lease. The interest rate charged by the lessor was 10 The...
Red Co. recorded a right-of-use asset of P100,000 in a ten-year finance lease. Payments of P16,275 are made annually at the end of each year. The interest rate charged by the lessor was 10%. The balance in the lease payable after two years will be ______.
Red Co. recorded a right-of-use asset of P100,000 in a ten-year finance lease. Payments of P16,275 are made annually at the end of each year. The interest rate charged by the lessor was 10%. The balance in the lease payable after two years will be ______.
Red Co. recorded a right-of-use asset of $125,000 in a 10-year finance lease. Payments of $20,343...
Red Co. recorded a right-of-use asset of $125,000 in a 10-year finance lease. Payments of $20,343 are made annually at the end of each year. The interest rate charged by the lessor and known by Red was 10%. The balance in the lease payable after two years will be: (Round your final answer to the nearest whole dollar.) Multiple Choice $151,250. $145,377. $100,000. $108,530.
I. Lasch Co. recorded a right-of-use asset of $220,000 in a 10-year operating lease. Payments of...
I. Lasch Co. recorded a right-of-use asset of $220,000 in a 10-year operating lease. Payments of $37,356 are made annually at the end of each year. The interest rate charged by the lessor was 11%. The balance in the right-of-use asset after the first year will be: Multiple Choice 0 $195,800 0 $206,844 0 $142,514 C ......$220.000.
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...
A finance lease agreement calls for quarterly lease payments of $7,392 over a 10-year lease term,...
A finance lease agreement calls for quarterly lease payments of $7,392 over a 10-year lease term, with the first payment on July 1, the beginning of the lease. The annual interest rate is 12%. Both the present value of the lease payments and the cost of the asset to the lessor are $176,000. Required: a. Prepare a partial amortization table up to the October 1 payment. b. What would be the amount of interest expense (revenue) the lessee (lessor) would...
9 leased equipment under a finance lease designed to eam the lessor a 9% rate of...
9 leased equipment under a finance lease designed to eam the lessor a 9% rate of return for providing long-term financing. The lease agreement specified ten annual payments of $85,000 beginning January 1, and each 31 th er through 2026. A 10-year service agreement was to provide maintenance of the equipment as for a fee of $7000 per year Both amounts were to be reflect both expenditures. (FV of S1. PV of $1 FVA of $1. PVA of $1. EVAD...
A finance lease agreement calls for quarterly lease payments of $5,519 over a 10-year lease term,...
A finance lease agreement calls for quarterly lease payments of $5,519 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 $154,000. Required: a. Prepare a partial amortization table up to the October 1 payment. b. What would be the amount of interest expense (revenue) the lessee (lessor) would...
A finance lease agreement calls for quarterly lease payments of $6,720 over a 10-year lease term,...
A finance lease agreement calls for quarterly lease payments of $6,720 over a 10-year lease term, with the first payment on July 1, the beginning of the lease. The annual interest rate is 12%. Both the present value of the lease payments and the cost of the asset to the lessor are $160,000. Required: a. Prepare a partial amortization table up to the October 1 payment. b. What would be the amount of interest expense (revenue) the lessee (lessor) would...
On January 1, 2018, Diana Corporation (a lessor) signed to lease a machinery for eight-year. The...
On January 1, 2018, Diana Corporation (a lessor) signed to lease a machinery for eight-year. The lease was noncancellable. The terms of the lease called for Diane to make annual payments of $220,000 starting January 1, 2019 for eight years with the title reverting to the Diana at the end of the lease term. The contract stated that Diane guaranteed the residual value of the machine is $10,000 upon end of lease term. The machinery originally costed Diana $750,000, has...
Problem 4: Assume the same facts as for Problem 3. A. For the lessor, is the lease a finance lease (sales-type) or...
Problem 4: Assume the same facts as for Problem 3. A. For the lessor, is the lease a finance lease (sales-type) or an operating lease? Explain why or why not. B. Prepare the lessor's journal entries through 12/31/Yr1. 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...
I. Lasch Co. recorded a right-of-use asset of $220,000 in a 10-year operating lease. Payments of $37,356 are made annually at the end of each year. The interest rate charged by the lessor was 11%. The balance in the right-of-use asset after the first year will be: Multiple Choice 0 $195,800 0 $206,844 0 $142,514 C ......$220.000.
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...
9 leased equipment under a finance lease designed to eam the lessor a 9% rate of return for providing long-term financing. The lease agreement specified ten annual payments of $85,000 beginning January 1, and each 31 th er through 2026. A 10-year service agreement was to provide maintenance of the equipment as for a fee of $7000 per year Both amounts were to be reflect both expenditures. (FV of S1. PV of $1 FVA of $1. PVA of $1. EVAD...
A finance lease agreement calls for quarterly lease payments of $5,519 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 $154,000. Required: a. Prepare a partial amortization table up to the October 1 payment. b. What would be the amount of interest expense (revenue) the lessee (lessor) would...
A finance lease agreement calls for quarterly lease payments of $6,720 over a 10-year lease term, with the first payment on July 1, the beginning of the lease. The annual interest rate is 12%. Both the present value of the lease payments and the cost of the asset to the lessor are $160,000. Required: a. Prepare a partial amortization table up to the October 1 payment. b. What would be the amount of interest expense (revenue) the lessee (lessor) would...
Problem 4: Assume the same facts as for Problem 3. A. For the lessor, is the lease a finance lease (sales-type) or an operating lease? Explain why or why not. B. Prepare the lessor's journal entries through 12/31/Yr1. 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...
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