User Account

All Pages

Calculate the amount of the annual rental payment

Assignment Help Financial Accounting
Reference no: EM132754769

Question - On January 1, 2017, Jubilee Corp. leased equipment to Cobourg Ltd. The following information concerns this lease.

The term of the non-cancellable lease is six years, with no renewal option.

Equal rental payments are due on January 1 of each year, beginning in 2017.

The equipment's fair value on January 1, 2017 is $144,000.

Jubilee set the annual rental to ensure an 8% rate of return.

Instructions -

1. Assume that the equipment reverts to the lessor at the termination of the lease, at which time it is expected to have a residual value (not guaranteed) of $6,000, calculate the amount of the annual rental payment.

2. Assume that the lease has a bargain purchase option that allows Cobourg to purchase the equipment for $2,000 at the termination of the lease, calculate the amount of the annual rental payment.

3. Assume that Cobourg keeps the equipment at the termination of the lease, calculate the amount of the annual rental payment.

Reference no: EM132754769

Questions Cloud

Find what is the materials price variance for the month : Find What is the materials price variance for the month? Standard quantity per unit of output 6.8metres. Standard price $17.10per metre
Describe the seven perspectives of psychology : Describe the seven perspectives of psychology? How do Behavioral and Cognitive differ from the other five perspectives?
What amount will be in the investment fund on december : If Sheridan will earn 9% on the investment, what amount will be in the investment fund on December 31, 2025
How much of the items was included in operating income : How much of these items was included in operating income? Cash collections from customers for services yet to be provided totaled $45,000.
Calculate the amount of the annual rental payment : Assume that Cobourg keeps the equipment at the termination of the lease, calculate the amount of the annual rental payment
What is the fundamental value in year : Using the two-stage dividend discount model (DDM), what is the fundamental value in year 2022? The discount rate for X's cash flows is 20%.
Possible benefits of focusing on childhood : What are two (2) possible benefits of focusing on childhood as the time when emotional problems originate, and what are two (2) possible drawbacks?
Which accurate of the commonly used methods : Which is the most difficult but most accurate of the commonly used methods for allocating support department costs to production departments?
Find the total expenses in the flexible budget for january : However, 38 containers were actually refurbished during January. Find the total expenses in the flexible budget for January

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd