Find and calculate the pv of the minimum lease payments

Assignment Help Financial Accounting
Reference no: EM132496521

Point 1: On January 1, 2021, Ivanhoe Ltd., which uses IFRS 16, entered into an eight-year lease agreement for a conveyor machine. Annual lease payments are $34,900 at the beginning of each lease year, which ends December 31, and Ivanhoe made the first payment on January 1, 2021. At the end of the lease, the machine will revert to the lessor. However, conveyor machines are expected to last for only eight years and have no residual value. At the time of the lease agreement, conveyor machines could be purchased for $195,000 cash. Equivalent financing for the machine could have been obtained from Ivanhoe's bank at 12%. Ivanhoe's fiscal year coincides with the calendar year. Ivanhoe uses straight-line depreciation for its conveyor machines.

Question 1: Calculate the PV of the minimum lease payments using (1) a financial calculator or (2) Excel functions. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 1,452.)

Reference no: EM132496521

Questions Cloud

How to calculate statutory and voluntary deductions : How to calculate statutory and voluntary deductions using government and employee documentation and give a minimum of 4 example
Emotional development that occur in in late adulthood : What approaches would you recommend to alleviate the impact of some of these changes?
What percentage of ownership of the nydeli dot venture have : What percentage of ownership of the NYDeli dot.com venture will you have to give up to the VC firm for its $1.5 million investment?
How does your family communicate about or view death : How does your family communicate about or view death? What impact does communication with loved ones have on the death and dying process?
Find and calculate the pv of the minimum lease payments : Calculate the PV of the minimum lease payments using (1) a financial calculator or (2) Excel functions. (Round factor values to 5 decimal places)
How might your own views on death and dying impact : How might your own views on death and dying impact your work with this patient? How might you seek to guide or help this patient and her family through
How many months before the due date was the discount? date : How many months before the due date was the discount? date? A? five-year, ?$1000 note bearing interest at 7?% compounded annually was discounted
Calculate the amounts macadamia should report items : Calculate the amounts Macadamia should report for the following items in the Discontinued Operations section of the December 31, 2017 income statement
Find proper cash flow amount to use as initial investment : Parker & Stone, Inc., What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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