User Account

All Pages

Find how should the lease be accounted

Assignment Help Accounting Basics
Reference no: EM132788387

Problem 1: On January 1, 2019, Alaska, Ltd entered into an agreement to lease a machine that had an estimated life of 10 years. The lease period is for four years with annual rentals of P50,000 payable in advance from January 1, 2019. The machine is expected to have a nil residual value at the end of its life. The machine had a fair value of P250,000 at the inception of the lease. How should the lease be accounted for in the financial statements of Alaska for the year ended December 31, 2019? Why? (Answer here is the kind of lease all in lower case: e.g. finance lease, operating lease, sales type lease, sale and leaseback). Give two reasons.

Reference no: EM132788387

Questions Cloud

Publishing on organisational sustainability policy : What a monitoring reports may include while publishing on an organisational sustainability policy?
Which is not likely to be treated as a product cost : Which is not likely to be treated as a product cost? Portion of the cost of running the quality control department./Wages paid to factory workers.
In what ways is imagination important in business : In what ways is imagination important in business? In business communication?
Conduct a porter five forces analysis : Conduct a Porter's five forces analysis of the used book industry. Is this an attractive industry? Why or why not? Which force(s) have the strongest influence?
Find how should the lease be accounted : Find How should the lease be accounted for in the financial statements of Alaska for the year ended December 31, 2019? Why?
How should the lease be accounted for in financial statement : Push Co entered into an agreement to lease,How should the lease be accounted for in the financial statements of Push for the year ended December 31, 2019?
Four career issues in the new workplace : What are the four career issues in the new workplace facing managers today?
What would be the inventory valuation at July : Assuming that the company uses the periodic inventory system, what would be the inventory valuation at July 31, 2008
Give the rules on reclassification of an equity securities : What are the initial cost of the following equity security (a) fair value through profit or loss and (b) fair value through other comprehensive income.

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