Exercise 21-15 Assume that on January 1, 2017, Elmer's Restaurants sells a computer system to Liquidity...
Exercise 21-15 Assume that on January 1, 2017, Elmer's Restaurants sells a computer system to Liquidity Finance Co. for $709,000 and immediately leases the computer system back. The relevant information is as follows. 1. The computer was carried on Elmer's books at a value of $636,000. 2. The term of the noncancelable lease is 10 years; title will transfer to Elmer 3. The lease agreement requires equal rental payments of $115,386 at the end of each year 4. The incremental...
Assume that on January 1, 2017, Elmer’s
Restaurants sells a computer system to Liquidity Finance
Co. for $733,000 and immediately leases the computer system back.
The relevant information is as follows.
1.
The computer was carried on
Elmer’s books at a value of $657,000.
2.
The term of the noncancelable
lease is 10 years; title will transfer to Elmer.
3.
The lease agreement requires
equal rental payments of $119,292 at the end of each year.
4.
The incremental borrowing
rate...
Assume that on January 1, 2017, Elmer’s Restaurants sells a computer system to Liquidity Finance Co. for $683,000 and immediately leases the computer system back. The relevant information is as follows. 1. The computer was carried on Elmer’s books at a value of $600,000. 2. The term of the noncancelable lease is 10 years; title will transfer to Elmer. 3. The lease agreement requires equal rental payments of $111,155 at the end of each year. 4. The incremental borrowing rate...
Assume that on January 1, 2020, Elmer's Restaurants sells a computer system to Ivanhoe Finance Car for Information is as follows mediately leaves the computer system back. The relevant 1. The computer was carried on Elmer's books at a value of $780,000 2. The term of the non-cancelable lease is 3 years, title will not transfer to Elmer's, and the expected residual value at the end of the lease is $630,000, all of which is unguaranteed. 3. The lease agreement...
E21.23 (LOS) (Sale-Leaseback) Assume that on January 1, 2020. Elmer's Restaurants sells a com- puter system to Liquidity Finance Co. for $680,000 and immediately leases back the computer system. The relevant information is as follows. 1. The computer was carried on Elmer's books at a value of $600.000, 2. The term of the non-cancelable lease is 3 years, title will not transfer to Elmer's, and the expected residual value at the end of the lease is $450,000, all of which...
Please assist with answering the correct Account titles and
figures in red! Please show all work! Thank you!
Your answer is partially correct. Try again Assume that on January 1, 2017, Elmer's Restaurants sells a computer system to Crane Finance Co. for $640,000 and immediately leases the computer system back. The relevant information is as follows. The computer was carried on Elmer's books at a value of $560,000 The term of the non-cancelable lease is 3 years; title will not...
Exercise 21-11 Laura Leasing Company signs an agreement on January 1, 2017, to lease equipment to Novak Company. The following information relates to this agreement. 1. The term of the noncancelable lease is 5 years with no renewal option. The equipment has an estimated economic life of 5 years. 2. The fair value of the asset at January 1, 2017, is $74,100. 3. The asset will revert to the lessor at the end of the lease term, at which time...
Exercise 21-11 Laura Leasing Company signs an agreement on January 1, 2017, to lease equipment to Culver Company. The following information relates to this agreement. 1. The term of the noncancelable lease is 5 years with no renewal option. The equipment has an estimated economic life of 5 years. 2. The fair value of the asset at January 1, 2017, is $74,600 3. The asset will revert to the lessor at the end of the lease term, at which time...
Exercise 21-10 Sage Leasing Company signs an agreement on January 1, 2017, to lease equipment to Cole Company. The following information relates to this agreement. 1. The term of the noncancelable lease is 6 years with no renewal option. The equipment has an estimated economic life of 6 years. 2. The cost of the asset to the lessor is $277,000. The fair value of the asset at January 1, 2017, is $277,000. 3. The asset will revert to the lessor...
Exercise 21-7 On January 1, 2017, Monty Company leased equipment to Flounder Corporation. The following information pertains to this lease. 1. The term of the noncancelable lease is 6 years, with no renewal option. The equipment reverts to the lessor at the termination of the lease 2. Equal rental payments are due on January 1 of each year, beginning in 2017 3. The fair value of the equipment on January 1, 2017, is $127,000, and its cost is $101,600 4....