please show all work Slow Mo Consulting leased machinery from Red Inc. on January 1, 2018....
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Slow Mo Consulting leased machinery from Red Inc. on January 1, 2018. The lease was recorded as a finance lease. The present value of the lease payments discounted at 12% was $649,000. Ten annual lease payments of $102,556 are due each Jan 1 beginning January 1, 2018.
On December 31, 2018 the amount reported as Right of Use Asset on the Balance Statement will be $_____
Homework Answers
| right of use asset recorded on Jan 1 2018 | 649000 | |
| Annual depreciation | 649000/10 | 64900 |
| right of use asset on Dec 31 2018 | 584100 |
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Slow Mo Consulting leased machinery from Red Inc. on January 1,
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please answer
14. On January 1, 2018 Balsam Inc. leased an asset that had a useful life of 8 years. The lease requires Balsam make five annual payments of $13,000 beginning January 1, 2018. At the end of the lease term, December 31, 2022, Balsam has the option to purchase the asset at a bargain price of $10,000. The interest rate implicit in the lease is 9%. Present value factors for the 9% rate implicit in the lease are as...
Cullumber Co. leased machinery from Young, Inc. on January 1,
2017. The lease term was for 8 years, with equal annual rental
payments of $5,500 at the beginning of each year. In addition, the
lease provides an option to purchase the machinery at the end of
the lease term for $3,000, which Cullumber is reasonably certain it
will exercise as it believes the fair value of the machinery will
be at least $6,000. The machinery has a useful life of...
On January 1, 2018, Majestic Mantles leased a lathe from
Equipment Leasing under a finance lease. Lease payments are made
annually. Title does not transfer to the lessee and there is no
purchase option or guarantee of a residual value by Majestic.
Portions of the Equipment Leasing’s lease amortization schedule
appear below:
Effective Decrease in Outstanding Balance Jan. 1 Payments Interest Balance 257,535 230,035 225,538 220,592 215,152 209,167 202,583 2018 27,500 2018 27,500 27,500 27,500 27,500 27,500 27,500 27,500 2019...
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