Amounts in the indicated accounts

Assignment Help Accounting Basics

Reference no: EM13160286

Quattro Corporation signed a lease from Cinco Leasing Company of July 1, 20X3, for equipment having a five-year useful life. The lease does not include any option to purchase the equipment at the end of the four-year lease term, nor does it include a provision for ownership transfer. Five equal payments of $10,000 per year are required by the term of the lease, with the first payment due upon signing. Quattro's incremental borrowing rate is 8%, but its implicit interest rate is unknown.

Present value of an annuity at 8% for 5 years = 3.993
Present value of an annuity at 8% for 4 years = 3.312

On its December 31, 20X3 financial statements, Quatto would display the following amounts in the indicated accounts:

Reference no: EM13160286

Questions Cloud

What are two components of restriction-modification system : What are two components of the Restriction-Modification system of a bacterial cell and what is the purpose of each?

Explain absorbance far outside the linear region : A solution (S1) of yellow # 5 has an absorbance far outside the linear region of Beer's law. In order to determine the concentration of this solution

What is the probable genotype for each member of the family : In humans the allele for normal blood clotting, H, is dominantto the allele for hemophilia, h. This is a sex-linked trait. Awoman with normal blood clotting has four children.

Social structure of the byzantine empire : Examine the social structure of the Byzantine empire. Explain the theme system.

Amounts in the indicated accounts : On its December 31, 20X3 financial statements, Quatto would display the following amounts in the indicated accounts:

Consider a heat engine operating : Consider a heat engine operating between 1200 K (TH) and 400 K (TC), What if we combust 1 liter of ethane to supply qh, how much work would we expect

Short-term physical and psychological effects : What is the most widely used illicit drug in the United States? Under what class of drugs is it listed and what are its short-term physical and psychological effects at low to moderate doses?

What is the most speciose group of animals : What is the most speciose group of animals (i.e. which group has the most species)? What is the second most? Why do you think these groups are so successful?

Double-declining balance method problem : Depreciation expense recorded prior to 2008 under the double-declining balance method was $36,000. Voga has already recorded 2008 depreciation expense of $12,800 using the double-declining balance method.

User Account

All Pages