On December 31, 2018, Carla Vista Corporation leased a ship from Fort Company for an 8-year...
On December 31, 2018, Carla Vista Corporation leased a ship from Fort Company for an 8-year period expiring December 30, 2026. Equal annual payments of $570000 are due on December 31 of each year, beginning with December 31, 2018. The lease is properly classified as a finance lease on Carla Vista‘s books. The present value at December 31, 2018 of the eight lease payments over the lease term discounted at 11% is $2933290. Assuming all payments are made on time, the amount that should be reported by Carla Vista Corporation as the total obligation under financel leases on its December 31, 2019 balance sheet is Answer:
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On December 31, 2018, Carla Vista Corporation leased a ship from Fort Company for an 8-year...
On December 31, 2021, Lang Corporation leased a ship from Fort Company for an eight-year period...
On December 31, 2021, Lang Corporation leased a ship from Fort Company for an eight-year period expiring December 30, 2029. Equal annual payments of $500,000 are due on December 31 of each year, beginning with December 31, 2021. The lease is properly classified as a finance lease on Lang ‘s books. The present value at December 31, 2021 of the eight lease payments over the lease term discounted at 10% is $2,934,213. Assuming all payments are made on time, the...
cuate Accounting, 16e INTERMEDIATE ACCOUNTING (ACC301/3 • Assignment Gradebook ORION Downloadable eTextbook CALCULATOR FULL SCREEN PRINTER...
cuate Accounting, 16e INTERMEDIATE ACCOUNTING (ACC301/3 • Assignment Gradebook ORION Downloadable eTextbook CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Multiple Choice Question 62 Your answer is incorrect. Try again. On January 1, 2018, Carla Vista Corporation signed a 5-year noncancelable lease for equipment. The terms of the lease called for Carla Vista to make annual payments of $195000 at the beginning of each year for 5 years beginning on January 1, 2016 with the title passing to Carla Vista at...
Help On December 31, 2017, Ball Company leased a machine from Cook for a 10-year period, expiring December 30, 2027. Ann...
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On December 31, 2017, Ball Company leased a machine from Cook for a 10-year period, expiring December 30, 2027. Annual payments of $100,000 are due on December 31. The first payment was made on December 31, 2017, and the second payment was made on December 31, 2018. The present value at the inception of the lease for the 10 lease payments discounted at 10% was $676,000. The lease is appropriately accounted for as a capital lease by Ball Required:...
On December 31, 2017, Ball Company leased a machine from Cook for a 10-year period, expiring...
On December 31, 2017, Ball Company leased a machine from Cook for a 10-year period, expiring December 30, 2027. Annual payments of $100,000 are due on December 31. The first payment was made on December 31, 2017, and the second payment was made on December 31, 2018. The present value at the inception of the lease for the 10 lease payments discounted at 10% was $676,000. The lease is appropriately accounted for as a capital lease by Ball. Required: Compute...
Carla Vista, Inc. leased equipment from Tower Company under a 4-year lease requiring equal annual payments...
Carla Vista, Inc. leased equipment from Tower Company under a
4-year lease requiring equal annual payments of $414152, with the
first payment due at lease inception. The lease does not transfer
ownership, nor is there a bargain purchase option. The equipment
has a 4 year useful life and no salvage value. Carla Vista, Inc.’s
incremental borrowing rate is 11% and the rate implicit in the
lease (which is known by Carla Vista, Inc.) is 9%. Assuming that
this lease is...
Carla Vista Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020....
Carla Vista Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020. The lease is for an 8-year period and requires equal annual payments of $30,080 at the beginning of each year. The first payment is received on January 1, 2020. Carla Vista had purchased the machine during 2016 for $116,000. Collectibility of lease payments by Carla Vista is probable. Carla Vista set the annual rental to ensure a 6% rate of return. The machine has...
On January 1, 2017, Carla Vista Company leased equipment to Flynn Corporation. The following information pertains...
On January 1, 2017, Carla Vista Company leased equipment to Flynn Corporation. The following information pertains to this lease: 1. The term of the non-cancelable lease is 6 years. At the end of the lease term, Flynn has the option to purchase the equipment for $3,000, while the expected residual value at the end of the lease is $8,000. 2 Equal rental payments are due on January 1 of each year, beginning in 2017 3. The fair value of the...
Francisco leased equipment from Julio on December 31, 2018. The lease is a 10-year lease with...
Francisco leased equipment from Julio on December 31, 2018. The lease is a 10-year lease with annual payments of $158,000 due on December 31 of each year beginning December 31, 2018. The present value of the lease payments is $1,030,000. Francisco's incremental borrowing rate is 12% for this type of lease. The implicit rate of 11% is known by the lessee. What should be the balance in Francisco lease liability at December 31, 2019?
On January 1, 2018, NRC Credit Corporation leased equipment to Brand Services under a finance/sales-type lease...
On January 1, 2018, NRC Credit Corporation leased equipment to Brand Services under a finance/sales-type lease designed to earn NRC a 12% rate of return for providing long-term financing. The lease agreement specified: Ten annual payments of $75,000 beginning January 1, 2018, the beginning of the lease and each December 31 thereafter through 2026. The estimated useful life of the leased equipment is 10 years with no residual value. Its cost to NRC was $414,500. The lease qualifies as a...
On January 1, 2018, NRC Credit Corporation leased equipment to Brand Services under a finance/sales-type lease...
On January 1, 2018, NRC Credit Corporation leased equipment to Brand Services under a finance/sales-type lease designed to earn NRC a 11% rate of return for providing long-term financing. The lease agreement specified: Ten annual payments of $74,000 beginning January 1, 2018, the beginning of the lease and each December 31 thereafter through 2026. The estimated useful life of the leased equipment is 10 years with no residual value. Its cost to NRC was $424,908. The lease qualifies as a...
cuate Accounting, 16e INTERMEDIATE ACCOUNTING (ACC301/3 • Assignment Gradebook ORION Downloadable eTextbook CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Multiple Choice Question 62 Your answer is incorrect. Try again. On January 1, 2018, Carla Vista Corporation signed a 5-year noncancelable lease for equipment. The terms of the lease called for Carla Vista to make annual payments of $195000 at the beginning of each year for 5 years beginning on January 1, 2016 with the title passing to Carla Vista at...
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On December 31, 2017, Ball Company leased a machine from Cook for a 10-year period, expiring December 30, 2027. Annual payments of $100,000 are due on December 31. The first payment was made on December 31, 2017, and the second payment was made on December 31, 2018. The present value at the inception of the lease for the 10 lease payments discounted at 10% was $676,000. The lease is appropriately accounted for as a capital lease by Ball Required:...
Carla Vista, Inc. leased equipment from Tower Company under a
4-year lease requiring equal annual payments of $414152, with the
first payment due at lease inception. The lease does not transfer
ownership, nor is there a bargain purchase option. The equipment
has a 4 year useful life and no salvage value. Carla Vista, Inc.’s
incremental borrowing rate is 11% and the rate implicit in the
lease (which is known by Carla Vista, Inc.) is 9%. Assuming that
this lease is...
On January 1, 2017, Carla Vista Company leased equipment to Flynn Corporation. The following information pertains to this lease: 1. The term of the non-cancelable lease is 6 years. At the end of the lease term, Flynn has the option to purchase the equipment for $3,000, while the expected residual value at the end of the lease is $8,000. 2 Equal rental payments are due on January 1 of each year, beginning in 2017 3. The fair value of the...
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