User Account

All Pages

Compute the annual payment

Assignment Help Accounting Basics
Reference no: EM131921211

Question - Tempe Corp. leased some equipment to Glendale, Inc. on January 1, 2010. The lease required six annual payments, with the first payment due on December 31, 2010. The cost, and also fair value, of the equipment was $140,000, and there was no estimated residual value at the end of the six-year period. The lease was a direct financing lease and does qualify as a capital lease for Tempe.

Tempe's desired rate of return is 9%.

Use the following factors for 6 periods: 9%

Present value of an ordinary annuity 4.485919

Present value of annuity due 4.889651

Required: Compute the annual payment. Be sure to show your work.

Reference no: EM131921211

Questions Cloud

Raises the price of parking downtown : The city of Los Angeles suspects that if it raises the price of parking downtown (raises the fees in garages) it will get more revenue.
Compute the amount of pension expense : Amortization of unrecognized prior service cost for the year 270,000, Compute the amount of pension expense for 2010. Be sure to show your work
What fraction of ownership in your idea do you need to sell : You have an idea that requires an investment of $60 today, What fraction of ownership in your idea (what percentage of E) do you need to sell?
Discuss the importance of cash flows to a business : View the you-tube videos below on cash flow. Discuss the following: - the difference of cash flow statements from balance sheets and net income.
Compute the annual payment : The lease required six annual payments, with the first payment due on December 31, 2010. Compute the annual payment
Computer science-intro to c problem : You be prompting a student for grades and credits for courses taken. From that, you will calculate a GPA.
In the black-scholes-merton option pricing formula : In the Black-Scholes-Merton option pricing formula N(d1) denotes (circle one)
Prepare all journal entries on spokane books : Spokane Company leased some equipment from another company on January 1, 2010, for a four-year period. Prepare all journal entries for 2010 on Spokane's books
What is the principal role of union in business environment : What is the principal role of a union in today's business environment? What is the purpose and effect of "Right-to-Work" laws in states that have enforced them?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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