User Account

All Pages

Compute the amount of the lease receivable

Assignment Help Accounting Basics
Reference no: EM132785665

Swifty Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2017. The lease is for an 8-year period and requires equal annual payments of $39,542 at the beginning of each year. The first payment is received on January 1, 2017. Swifty had purchased the machine during 2016 for $181,000. Collectibility of lease payments is reasonably predictable, and no important uncertainties surround the amount of costs yet to be incurred by Swifty. Swifty set the annual rental to ensure an 12% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Swifty at the termination of the lease.

problem (a) Compute the amount of the lease receivable. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.)

Reference no: EM132785665

Questions Cloud

Types of eukaryotic microorganisms that cause disease : Design and submit a concept map on: Types of eukaryotic microorganisms that cause disease
Prepare journal entries to record the transactions : Applications for 10,000 shares were rejected and the application money was refunded. Prepare journal entries to record the above transactions
Prepare necessary consolidation adjustment entries needed : Prepare all necessary consolidation adjustment entries needed to prepare the consolidated financial statements as at 30 June 2019.
Conduct additional research on the use of triclosan : Conduct additional research on the use of triclosan and other chemical agents in antimicrobial products today. Develop an opinion on whether this process
Compute the amount of the lease receivable : Compute the amount of the lease receivable. Swifty Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2017.
What journal entry will you write the beginning : In 20x2, you notice the error made in 20x0. Ignoring taxes, what journal entry will you write the beginning of 20x2 to correct the error
Why we only use only young cultures for gram staining : Explain during each four steps of the Gram stain what the Gram positive and Gram negative bacteria will look like
Autoclave without secondary containment : 1. Why do you think you should not place an autoclave bag containing waste directly inside the autoclave without secondary containment?
Compute the first-year depreciation : During the first year, the band performs 45 concerts. Compute the first-year depreciation using the units-of-production method

Reviews

Write a Review

Accounting Basics Questions & Answers

  Discuss both main effects and the presence-absence

This assignment consists of two parts. In the first part, you will utilize an existing dataset to compute a factorial ANOVA. All SPSS output should be pasted into your Word document. In the second part, you will be asked to create a hypothetical A..

  Describe manner in which a capital lease would be accounted

Briefly describe the manner in which a capital lease would be accounted for by company both at inception of lease and during first year of the lease, assuming that lease transfers ownership of property to the lessee at the end of the lease.

  What amount should trade and other receivables account be

At what amount should the Trade and other receivables account be presented in the balance sheet under current assets as of December 31, 2017?

  What is the amount of their adjusted gross income

Diego and Dolores' deductions for adjusted gross income amounted to $2,000, What is the amount of their adjusted gross income

  Considering the introduction of new model of headphones

Derby Phones is considering the introduction of new model of headphones with the following prices and cost characteristics

  What is revaluation of plant assets

What are some steps taken by both the FASB and IASB to move to fair value measurement for financial instruments? In what ways have some of the approaches differed - What is component depreciation, and when must it be used?

  Calculate the net present value and profitability index of

tlc corp. is considering purchasing one of two new diagnostic machines. either machine would make it possible for the

  Impact of the master budget on planning and control

What do you think he meant by this? Consider his comment with respect to the master budget. Do you agree or disagree?

  Determine the correct inventory amount on December

Blue Spruce shipped goods costing $57,520 to Hemlock Company FOB shipping point on December 28. Determine the correct inventory amount on December

  On january 31st the board of directors issues arequirement

wings over san diego is a publicly traded companywith preferred and common stock issued. as of january 1st ithad 50000

  Prepare the journal entry to record the issuance of bonds

Prepare the journal entry to record the issuance of the bonds if they are issued at (1) 100, (2), 98, and (3) 103.

  How do compute the gross profit rate for november

Crane Company reported the information for November. Compute the gross profit rate for November. (Round answer to 0 decimal places, e.g. 15%.)

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