Reference no: EM132841879
Question 1 - Spider co-leases a fleet of vehicles to Web Co. for 5 years. The annual lease payment, due at the beginning of the year is $75,000 and the rate implicit in the lease is 8%. Web Co. records leases under IFRS 16.
Required -
a. What is the initial journal entry to set up the lease on Web Co.'s books?
Question 2 - On January 1, 2020, Hot Fuss Corp. purchased a building for $900,000, with the intention of leasing it. The building is expected to have a 20 year life, no residual value, and will be depreciated on a straight-line basis. On April 1, 2020, under a cancellable lease, Hot Fuss leased the building to Sam's Town Company for $300,000 a year ($25,000 a month) for a four year period ending March 31, 2024. Sam's Town paid $300,000 to Hot Fuss on April 1, 2020. During calendar 2020, Hot Fuss incurred $30,000 in maintenance and other executory costs under the provisions of the lease. This lease is properly classified as an operating lease by both parties.
Required -
a. How much income before income taxes will Hot Fuss Corp. report from this lease for calendar 2020?
b. How much rent expense will Sam's Town report in connection with this lease for calendar 2020?
Subject of aviation communication and safety issues
: Need to select two scholarly sources related to the subject of aviation communication and safety issues.
|
Why white americans are also mis-educated in america
: Explain why White Americans are also mis-educated in America. Use critical thinking skills and discuss the social-psychological impact of being black.
|
Summarize the early development of the indigenous population
: Summarize the early development of the indigenous population of America. Be sure to include their origin, methods of survival, domestication
|
Optimization techniques-linear programming
: Choose at least four topics from the below list and provide a real-world example for each:
|
How much income before income taxes Hot Fuss Corp report
: On January 1, 2020, Hot Fuss Corp. purchased a building for $900,000, How much income before income taxes will Hot Fuss Corp. report
|
What are required qualifications fire prevention division
: If you do not use national standards, what do you use, and what are the required qualifications? Are they appropriate in your opinion? Why, or why not?
|
To what extent is our response to stress affected by genetic
: To what extent is our response to stress affected by genetics? How can individuals better cope with stress? Remember to explain and cite educational sources.
|
How consulting engineers make their community a better place
: How consulting engineers make their community a better place to live both technically and socially. Your interest, understanding and commitment
|
How personal habits and health interact
: Write a 1 to 2 page essay exploring how personal habits, stress, and health interact; discuss the difference in the medical model's view of health and the view.
|