User Account

All Pages

Determine the present value of the annual lease payments

Assignment Help Accounting Basics
Reference no: EM132466197

Consider the following lease characteristics:

Lease term                                                   4 years

Asset's useful life                                          6 years

Asset's fair value                                          $40,000

Annual lease payment                                   $9,000

Annual lease payments occur at: Beginning of year

Lessor's implicit rate (known by lessee)            5%

Bargain purchase option exists?                     No

Question 1) Determine the present value of the annual lease payments. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round present value to the nearest whole dollar.)

Question 2) Determine the appropriate lease classification by the lessee (operating or finance).

Reference no: EM132466197

Questions Cloud

SITXFIN005 - Manage Physical Assets Assignment : SITXFIN005 - Manage Physical Assets Assignment Help and Solution - Sheldon School of Hospitality, Australia. Develop a plan for the acquisition and maintenance
Does Technology Help or Harm Security Efforts : Does Technology Help or Harm Security Efforts? Should the company be allowed to install the EyeSpy software to monitor performance?
What is the npv of the project and tocserp : Assume Tocserp uses a discount rate of 14 percent and has a tax rate of 34 percent. What is the NPV of the project and should Tocserp make the purchase.
How much money do you need to save every end : You also wish to leave an estate for your children for about $1million at the time of your death. What is the expected lump sum you need at the beginning
Determine the present value of the annual lease payments : Determine the present value of the annual lease payments. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
Hypothesize why organizations may change : Hypothesize why organizations may change. What are the potential consequences of an organization being resistance to change?
What is the company new required rate of return : The risk-free rate and the firm's beta remain unchanged. What is the company's new required rate of return?
What is the approximate price of a bond that matures : What is the approximate price of a bond that matures in two years (T = 2), with a face value of $1000 (F = $1000), and an annual coupon
What is the cost of the plant maintenance department : What is the complete reciprocated cost of the Plant Maintenance Department?Alfred, owner of Hi-Tech Fiberglass Fabricators, Inc

Reviews

Write a Review

Accounting Basics Questions & Answers

  What are the two components of an agency net position

What are the two components of an agency net position? Describe the major causes of the year to year changes in each component.

  Ytm on a bond-equivalent basis

1. The annual YTM on a bond-equivalent basis is approximately:

  Journalize the adjusting entry required at the end of year

Journalize the adjusting entry required at the end of the year assuming supplies on-hand is $3120

  Evaluate how the company identified in your research

Next, evaluate how the company identified in your research can use the cash flow statement to project efficient uses of the cash hoard it has accumulated.

  Identify the principle of internal control that is violated

For each of these five separate cases, identify the principle(s) of internal control that is violated. Recommend what the business should do to ensure.

  Calculate the variable costs fxed costs and mixed costs

a department of omega co. incurred the following costs for the month of july. variable costs and the variable portion

  Identify the physical location of the company

Alburton gets the Afghanistan contract, and Identify the physical location of the company as Bloom tells Alburton to invoice Island Printing for well.

  Compute the direct materials cost per equivalent unit

The production department had $825,945 of direct materials. Compute the direct materials cost per equivalent unit for April

  What are the main differences between Finance and Accounts

What are the main differences between Finance and Accounts? Describe the 3 types of Accounting with special emphasis on the roles performed in each

  Compute the amount of the lease receivable

Crosley Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2014. Compute the amount of the lease receivable.

  Estimate the cost of the inventory destroyed

On February 26 a hurricane destroyed the entire inventory stored in a warehouse owned by the Rockford Corporation.

  What is the role of export-import bank of the united states

Government Programs This chapter described many forms of government insurance and guarantee programs. What motivates a government to establish such programs?

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