A loan supported by an agreement to transfer ownership of assets if the loan is not...
A loan supported by an agreement to transfer ownership of assets if the loan is not repaid is called a:
1- Private placement of debt
2- Publicly traded debt
3- Secured debt
4- Capital lease
Homework Answers
Answer. 3- Secured debt.
Explanation : Under secured debt , if the borrower fails to repay the installation than the ownership of assets secured are transfer to lenders & lenders have right to sell the assets to recover their proceeds.
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A loan supported by an agreement to transfer ownership of assets
if the loan is not...
if a lease agreement specifies that ownership will transfer at the end of the lease should i depreciate by the economic life of the asset since the lessor wont be receiving the asset back?
if a lease agreement specifies that ownership will transfer at the end of the lease should i depreciate by the economic life of the asset since the lessor wont be receiving the asset back?
CH9 Coney Island enters into a lease agreement for a new ride valued at $3.3 million....
CH9
Coney Island enters into a lease agreement for a new ride valued at $3.3 million. Prior to this agreement, their total assets are $28.9 million and their total liabilities are $16.3 million. Required: 1. Calculate total stockholders' equity prior to the lease agreement. (Enter your answer in millions, not in dollars rounded to 2 decimal places. (i.e.$5,500,000 million should be entered as 5.50)) Stockholders' equity million 2.&3. Calculate the debt to equity ratio assuming that it is an operating...
Exercise 9-3 Compare operating and capital leases (LO9-3, 9-8) Coney Island enters into a lease agreement...
Exercise 9-3 Compare operating and capital leases (LO9-3, 9-8) Coney Island enters into a lease agreement for a new ride valued at $3.7 million. Prior to this agreement, the company's total assets are $30.1 million and its total liabilities are $16.7 million Required 1. Calculate total stockholders' equity prior to the lease agreement. (Enter your answer in millions not in dollars, rounded to 2 decimal places. (i.e. $5,500,000 should be entered as 5.5).) Stockholders' equitymillion 2. & 3. Calculate the...
Exercise 9-3 Compare operating and capital leases (LO9-3, 9-8) Coney Island enters into a lease agreement...
Exercise 9-3 Compare operating and capital leases (LO9-3, 9-8) Coney Island enters into a lease agreement for a new ride valued at $3.2 million. Prior to this agreement, the company's total assets are $28.6 million and its total liabilities are $16.2 million Required: 1. Calculate total stockholders' equity prior to the lease agreement. (Enter your answer in millions not in dollars, rounded to 2 decimal places. (i.e. $5,500,000 should be entered as 5.5).) Stockholders' equi million 2. & 3. Calculate...
Blue Corporation entered into a lease agreement on January 1,2020,
Blue Corporation entered into a lease agreement on January 1,2020, to provide Crane Company with a piece of machinery. The terms of the lease agreement were as follows.1. The lease is to be for 3 years with rental payments of \(\$ 15,990\) to be made at the beginning of each year.2. The machinery has a fair value of \(\$ 63,000\), a book value of \(\$ 40,000\), and an economic life of 8 years.At the end of the lease term, both...
1. Zhang Company has a loan agreement that provides it with cash today, and the company...
1. Zhang Company has a loan agreement that provides it with cash today, and the company must pay $25,000 4 years from today. Zhang agrees to a 6% interest rate. The present value of 1 (single sum) for 4 periods at 6% is 0.7921. What is the amount of cash that Zhang Company receives today? 2. The current year-end balance sheet data for a company are shown below. Assets: Cash $ 38,000 Marketable securities 45,000 Accounts receivable (net) 127,500 Merchandise...
5. Accounting for Lease Agreement - Lessee (18 points) Gopher Sales and Service entered into a...
5. Accounting for Lease Agreement - Lessee (18 points) Gopher Sales and Service entered into a lease agreement to lease a fleet of five vehicles from Hawkeye Motors. The term of the lease is five years and Gopher makes annual payments of $21,000 per year beginning on January 1, 2017 (and then every December 31 through December 31, 2020). January 1, 2017 is also the lease commencement date. Gopher does not guarantee any residual value in the lease agreement. Gopher...
33. A call provision in a bond agreement grants the issuer the right to: A. call...
33. A call provision in a bond agreement grants the issuer the right to: A. call the bondholder to determine if he or she would like to extend the term of the bond agreement. B. change the coupon rate provided the bondholders are notified in advance. C. replace the bonds with equity securities. D. repurchase the bonds prior to maturity at a pre-specified price. E. buy back the bonds on the open market prior to maturity. Part 2 A note...
The Bensington Glass Company entered into a loan agreement with the firm's bank to finance the...
The Bensington Glass Company entered into a loan agreement with the firm's bank to finance the firm's working capital. The loan called for a floating rate that was 28 basis points (0.28 percent) over an index based on LIBOR. In addition, the loan adjusted weekly based on the closing value of the index for the previous week and had a maximum annual rate of 2.25 percent and a minimum of 1.75 percent. Calculate the rate of interest for weeks 2...
The Bensington Glass Company entered into a loan agreement with the firm's bank to finance the...
The Bensington Glass Company entered into a loan agreement with the firm's bank to finance the firm's working capital. The loan called for a floating rate that was 26 basis points (0.26 percent) over an index based on LIBOR. In addition, the loan adjusted weekly based on the closing value of the index for the previous week and had a maximum annual rate of 2.242.24 percent and a minimum of 1.75 percent. Calculate the rate of interest for weeks 2...
CH9
Coney Island enters into a lease agreement for a new ride valued at $3.3 million. Prior to this agreement, their total assets are $28.9 million and their total liabilities are $16.3 million. Required: 1. Calculate total stockholders' equity prior to the lease agreement. (Enter your answer in millions, not in dollars rounded to 2 decimal places. (i.e.$5,500,000 million should be entered as 5.50)) Stockholders' equity million 2.&3. Calculate the debt to equity ratio assuming that it is an operating...
Exercise 9-3 Compare operating and capital leases (LO9-3, 9-8) Coney Island enters into a lease agreement for a new ride valued at $3.7 million. Prior to this agreement, the company's total assets are $30.1 million and its total liabilities are $16.7 million Required 1. Calculate total stockholders' equity prior to the lease agreement. (Enter your answer in millions not in dollars, rounded to 2 decimal places. (i.e. $5,500,000 should be entered as 5.5).) Stockholders' equitymillion 2. & 3. Calculate the...
Exercise 9-3 Compare operating and capital leases (LO9-3, 9-8) Coney Island enters into a lease agreement for a new ride valued at $3.2 million. Prior to this agreement, the company's total assets are $28.6 million and its total liabilities are $16.2 million Required: 1. Calculate total stockholders' equity prior to the lease agreement. (Enter your answer in millions not in dollars, rounded to 2 decimal places. (i.e. $5,500,000 should be entered as 5.5).) Stockholders' equi million 2. & 3. Calculate...
5. Accounting for Lease Agreement - Lessee (18 points) Gopher Sales and Service entered into a lease agreement to lease a fleet of five vehicles from Hawkeye Motors. The term of the lease is five years and Gopher makes annual payments of $21,000 per year beginning on January 1, 2017 (and then every December 31 through December 31, 2020). January 1, 2017 is also the lease commencement date. Gopher does not guarantee any residual value in the lease agreement. Gopher...
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