Find what is the balance of lease liability on december

Assignment Help Accounting Basics

Reference no: EM132784872

Problem 1: Long Live Company entered into a lease agreement for the use of a new machine on January 1, 2020. The lease agreement requires an annual payment of P1,500,000 for five years starting December 31, 2020. Long Live guaranteed a residual value of P711,090 at the end of the contract. The machine will revert to the lessor at the end of five years. The machine has an economic life of 10 years. The implicit rate for this lease is 16% where the present value of 1 for five periods is 0.4761 and the present value of an ordinary annuity of 1 is 3.2743. What is the balance of lease liability on December 31, 2020?

Reference no: EM132784872

Questions Cloud

How much australian dollar the exporter will make a profit : The spot exchange rate is A$0.2577. How much Australian dollar the exporter will make a profit after one year

Describe a procedure for capturing video of a crime scene : Briefly describe a procedure for capturing video of a crime scene. Describe the significance of recording a computer's time offset.

What amount of bond discount be amortized for six months : Peter Company issued 4,000 of its 8%, What amount of the bond discount should be amortized for the six months ended December 31, 2019?

How many years will you have to wait in order to realize : Suppose you invested 24,289.7 today at the rate of 15% and would like to redeem 49,453.5 in the foreseeable future. How many years will you have

Find what is the balance of lease liability on december : What is the balance of lease liability on December 31, 2020? The implicit rate for this lease is 16% where the present value of 1 for five periods.

Prepare table that shows the ownership interest percentages : Prepare a table that shows the ownership interest percentages in the two subsidiaries distinguishing between direct and indirect interests

Identify the main forces in an organization : Identify the main forces in an organization's external environment and the challenges these forces present to managers. Why is it important for managers to unde

How much should company report as operating profit : Bumper campayhas three lines of twatthig, In its 2014 financial statements, how much should company report as operating profit for segment no. 1?

Discuss how csr and risk management are related : Discuss how CSR and Risk Management are related. Are their specific business risks related to CSR? What are those business risks and why are they important?

User Account

All Pages