Compute the December amount that Davian should report

Assignment Help Accounting Basics
Reference no: EM132742614

Question - On December 31, 20X1, Davian LLC leased a machine from Cook for a 5-year period, expiring December 30, 20X6. Annual payments of $100,000 are due on December 31. The first payment was made on December 31, 20X2, and the second payment was made on December 31, 20X3. The present value at the inception of the lease for the 5 lease payments discounted at 8% was $386,100. The lease is appropriately accounted for as a finance lease by Davian. (Do not round your intermediate calculations and round final answers to the nearest whole dollar amount)

Required - Compute the December 31, 20X3, amount that Davian should report as a total finance lease liability after the lease payment has been made.

Reference no: EM132742614

Questions Cloud

What is the probability that like crunchicles : What is the probability that the consumer is 18-24 years of age, given that they dislike Crunchicles? what is the probability that they like Crunchicles?
Compute the amount due at maturity : Problem - A business issued a $5,000, 60-day, 12% note to the bank. Compute the amount due at maturity
What is the percentage rate associated with preferred stock : Assuming the preferred dividend reflected a full-year amount at the normal yield, what is the percentage rate associated with preferred stock
What is the amount of proceeds from borrowings : The increase in share capital includes $10 000 arising from the company's dividend reinvestment scheme. What is the amount of proceeds from borrowings
Compute the December amount that Davian should report : Compute the December 31, 20X3, amount that Davian should report as a total finance lease liability after the lease payment has been made
What entry must Frank Accounting make on December : Frank's Accounting Service borrows $75,000 from National Bank on a $75,000, 3-month, 6% note. What entry must Frank's Accounting make on December
Risk assessment and core capabilities : Review your local community emergency management plan or that of another community you are familiar with (city or county).
Record the appropriate journal entry for each transactions : Assuming that Borland retires shares it reacquires, record the appropriate journal entry for each of the following transactions
What payment must Quick Print make on October : The rate of interest was increased to 8% effective August 1 and to 8.5% effective October 1. What payment must Quick Print make on October 31

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.

  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!

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