Compute the fair value of the leased asset

Assignment Help Accounting Basics
Reference no: EM132713442

Question - Fitbit Ltd has leased a machine on the following terms:

Date of entering lease 1 July 2019

Duration of lease 5 years

Life of asset 6 years

Unguaranteed residual value $40,000

Lease payments inception (at the start) $60,000

Annual payments (5) $65,000

Implied rate 11.0 %

Required - Compute the Fair Value (rounded off) of the leased asset.

Reference no: EM132713442

Questions Cloud

Workforce analytics is common approach to business : Workforce analytics is a common approach to business operations because it is based on the analysis of employee and staff data.
Explain details of the personalized plan of care : Explain details of the personalized plan of care that you would develop based on influencing factors and patient history in your case.
Prepare the journal entries to record the interest revenue : The bonds provide the bondholders with a 10% yield. Prepare the journal entries to record the interest revenue and recognition of fair value for 2020
Groups can utilize several options for making decisions : Groups can utilize several options for making decisions. Discuss the advantages and disadvantages of voting, consensus, and authority rule decision making.
Compute the fair value of the leased asset : Fitbit Ltd has leased a machine on the following terms: Date of entering lease 1 July 2019. Compute the Fair Value (rounded off) of the leased asset
Find three short examples of media with religion content : Find three short examples of media with political content. Find three short (maximum of 300 words) examples of media content of your choice
Describe the role of leadership in the movie : Describe the role of leadership in the movie. What types of leadership were used? In what ways does leadership help the group achieve their goals?
What are the US tax consequences of liquidation for Winco : Assume that Winco's basis in Finco's stock was $5 million immediately prior to the liquidation, What are the US tax consequences of liquidation for Winco
Describe specific practitioner variance : Describe a specific practitioner variance and how such a variance might impact quality of care.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Methods of recording accounts receivable transactions

What are two methods of recording accounts receivable transactions when a cash discount situation is involved? Which is more theoretically correct? Which is used in practice more of the time? Why?

  What is the amount of interest revenue recorded on july

The Barton Corporation purchased $750,000 of 3%, 5-year bonds at 98 on January 1, 2016. What is the amount of Interest Revenue recorded on July 1, 2016

  Explain the tax advantage of allocating too much

Explain the tax advantage of allocating too much to the building and too little to the land

  What is claires tax liability on her investment activity if

carol had the following capital gains and lossesshort term capital gains 9000short term capital losses10000long term

  Retail inventory method with average

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..

  Calculate the cost recorded for the machine

On March 1, Bartholomew Company purchased a new stamping machine with a list price of $72,000. The cost recorded for the machine was

  What amount of loss may Roadrunner recognize

Roadrunner Corporation never used the land for business purposes during the time it owned the property. What amount of loss may Roadrunner recognize

  Passive loss can sage deduct problem

Sage, Inc., a closely held corporation that is not a PSC, has a $140,000 passive loss, $85,000 of active business income, and $35,000 of portfolio income. How much of the passive loss can Sage deduct?

  What is its accounts receivable turnover for the period

A company has net sales of $624,000 and average accounts receivable of $160,000. What is its accounts receivable turnover for the period

  List the features of organizations

Briefly explain the reasons why ABC is particularly suitable in a modern business environment and describe any situations where it is not appropriate.

  Compute the degree of operating leverage

Magic Realm, Inc., has developed a new fantasy board game. The company sold 19,800 games last year at a selling price of $66 per game.

  Construct a grouped frequency distribution

Define population and sample. Explain why sample is preferred than population. Which Australian Government Organisation surveys the total population

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