why aren't executory costs included as part of minimum lease payments?
why aren't executory costs included as part of minimum lease payments?
Homework Answers
Executory costs are not included in minimum lease payments because these are the costs incurred by the lesdor.
Executory costs includes insurance, maintenance, taxes etc.
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why aren't executory costs included as part of minimum lease payments?
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1. LULU MICUSU UCUUULI Y3 JUVN63uLL M I N ORIMIT 2. Why aren't transfer payments included as part of government spending?
A 12-year capital lease specifies equal minimum annual lease payments. Part of this payment represents interest...
A 12-year capital lease specifies equal minimum annual lease payments. Part of this payment represents interest and part represents a reduction in the net lease liability. The portion of the minimum lease payment applicable to interest expense should: Select one: a. Increase each year b. Decrease each year c. Be the same each year d. Fluctuate each year depending on market interest rates
Which of the following would be included in the Lease Receivable account? I. Guaranteed residual value. II. Unguaranteed...
Which of the following would be included in the Lease Receivable account? I. Guaranteed residual value. II. Unguaranteed residual value. III. Executory costs IV. Rental payments. Select one: a. I, II and IV b. II, III, and IV c. I and II only d. I and III only
Part 1) Amortization schedule Part 2) Prepare all of the journal entries for the lessee for 2017 and 2018 to record the lease agreement, the lease payments, and all expenses related to this lease. A...
Part 1) Amortization schedule
Part 2) Prepare all of the journal entries for the lessee for
2017 and 2018 to record the lease agreement, the lease payments,
and all expenses related to this lease. Assume the lessee’s annual
accounting period ends on December 31 and reversing entries are
used when appropriate. All executory costs are paid as incurred.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually. If no entry is required,
select "No Entry"...
Question 5 Which of the following would be included in the computation of the minimum lease...
Question 5 Which of the following would be included in the computation of the minimum lease payment/Lease Receivable? Guaranteed residual value. Penalty for failure to renew. A bargain purchase option. All of these answers are correct.
Identifying Lease Payments For each of the following three separate finance lease scenarios, determine the lease...
Identifying Lease Payments For each of the following three separate finance lease scenarios, determine the lease payment that the lessee should use to determine the appropriate lease classification a. An annual lease payment for equipment was $50,000 and included a fee of $5,000 for maintenance of the equipment. b. An annual lease payment for equipment was $55,000 and included both a fee of $4,000 for maintenance and $5,000 for insurance on the equipment. C. An annual lease for a building...
Direct Financing Lease (Lessor) • Caterpillar signed a lease arrangement for an equipment with Sterling Corporation...
Direct Financing Lease (Lessor) • Caterpillar signed a lease arrangement for an equipment with Sterling Corporation on 1/1/17 on the following terms: • Lease term is 5 years, non-cancellable, requiring annual payments of 25,981.62 at the beginning of each year (annuity due). • The equipment has a fair value of 100,000 on 1/1/17, useful life of 5 years, and no residual value • Sterling pays all executory costs to third parties except for 2,000 in property taxes that is included...
Part V: Lessee and Lessor enter into a lease agreement on January 1, 2019, for equipment....
Part V: Lessee and Lessor enter into a lease agreement on January 1, 2019, for equipment. The following data are relevant to the lease agreement: 1. The term of the non-cancelable lease is 5 years. Payments of $13,000 including executory costs of $3,000 are due at the end each year. 2. The equipment has an economic life of 10 years with a residual value of $15,000 at the end of the lease, but not guaranteed. The equipment's fair value equals...
Concord Leasing Company signs a lease agreement on January 1, 2017, to lease electronic equipment to...
Concord Leasing Company signs a lease agreement on January 1,
2017, to lease electronic equipment to Marigold 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.
Marigold Company has the option to purchase the equipment for
$16,000 upon termination of the lease.
2.
The equipment has a cost and fair value of $157,000 to Concord
Leasing Company. The useful economic life...
Bristol Company leased a machine from Harvard Leasing Company on January 1, 2017. The non-cancellable lease...
Bristol Company leased a machine from Harvard Leasing Company on January 1, 2017. The non-cancellable lease term is 4 years. The following data relate to this lease: 1. Harvard purchased the machine for $363,950 at a cost equal to its fair market value. 2. The economic life of the machine is 6 years with no salvage value at the end of 6 years. 3. Payments are on January 1 of each year starting in 2017 (an annuity due). 4. The...
1. LULU MICUSU UCUUULI Y3 JUVN63uLL M I N ORIMIT 2. Why aren't transfer payments included as part of government spending?
A 12-year capital lease specifies equal minimum annual lease payments. Part of this payment represents interest and part represents a reduction in the net lease liability. The portion of the minimum lease payment applicable to interest expense should: Select one: a. Increase each year b. Decrease each year c. Be the same each year d. Fluctuate each year depending on market interest rates
Part 1) Amortization schedule
Part 2) Prepare all of the journal entries for the lessee for
2017 and 2018 to record the lease agreement, the lease payments,
and all expenses related to this lease. Assume the lessee’s annual
accounting period ends on December 31 and reversing entries are
used when appropriate. All executory costs are paid as incurred.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually. If no entry is required,
select "No Entry"...
Identifying Lease Payments For each of the following three separate finance lease scenarios, determine the lease payment that the lessee should use to determine the appropriate lease classification a. An annual lease payment for equipment was $50,000 and included a fee of $5,000 for maintenance of the equipment. b. An annual lease payment for equipment was $55,000 and included both a fee of $4,000 for maintenance and $5,000 for insurance on the equipment. C. An annual lease for a building...
Part V: Lessee and Lessor enter into a lease agreement on January 1, 2019, for equipment. The following data are relevant to the lease agreement: 1. The term of the non-cancelable lease is 5 years. Payments of $13,000 including executory costs of $3,000 are due at the end each year. 2. The equipment has an economic life of 10 years with a residual value of $15,000 at the end of the lease, but not guaranteed. The equipment's fair value equals...
Concord Leasing Company signs a lease agreement on January 1,
2017, to lease electronic equipment to Marigold 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.
Marigold Company has the option to purchase the equipment for
$16,000 upon termination of the lease.
2.
The equipment has a cost and fair value of $157,000 to Concord
Leasing Company. The useful economic life...
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