Reference no: EM133096058
Problem - Lessor Corporation leases equipment to Lessee Corporation for three years on January 1, 2019, when the equipment's fair market value {and lessor's cost} is $150,000. Three lease payments of 552,044 are to be made at the end of each year, starting on December 31, 2019. Lessee Corporation has an option to purchase the asset at the end of the lease term for $20,000. It is very likely to exercise the purchase option. The implicit rate in the lease {known to Lessee) is 8%, the estimated economic life of the equipment is 5 years, at the end of which the salvage value expected is $35,000. Use straight-line depreciation.
Required -
1. Compute the present value of lease payments for Lessee Corporation on January 1, 2019.
2. Present journal entry in Lessee's books at lease inception (January 1, 2019).
3. Present journal entries in the books of Lessee Corporation at the end of 2019.
4. Present journal entry/entries in the books of Lessor Corporation at lease inception.
5. Present journal entry/entries in the books of Lessor Corporation at the end of 2019.
|
Identify the outside company advisors
: Identify the outside company advisors who should be included in the succession planning process.
|
|
Personality development as a leader
: As civil engineer, describe an example where you have shown or apply your leadership skills , ability , strategy etc. and that it results to a positive impact i
|
|
What are accounting entries required to record these events
: The 4 million shares are allotted on 5 Feb 2019. What are the accounting entries required to record these events
|
|
Why is training important during onboarding
: Why is training important during onboarding? Why is in-person orientation/onboarding better?
|
|
Compute present value of lease payments for lessee
: Three lease payments of 552,044 are to be made at the end of each year, Compute the present value of lease payments for Lessee Corporation on January 1, 2019
|
|
Prepare quarterly purchase budget
: Prepare quarterly general, administration and selling budget for Q1, Q2, Q3, and for Q4 ending December31, 2022
|
|
Concept of permanent employment
: Employees are showing far less loyalty now that the concept of "employability," which has replaced the concept of permanent employment, has been introduced into
|
|
Define strategic alignment
: 1. Define strategic alignment? 2. Define competitive strategy.? 3. Define strategic human resources development?
|
|
Managers in healthcare organizations
: As healthcare managers, what do you see as the greatest challenge facing managers in healthcare organizations? How do we overcome those challenges?
|