How much is the cost of goods sold recognized on January

Assignment Help Accounting Basics
Reference no: EM132952017

Question - On January 2, 2000, a manufacturer-lessor leased out a special equipment for P500,000, payable at the end of each year. The incremental borrowing rate is 10%. The lessor paid P50,000 to obtain the lease.

The cost and fair value of the equipment are P1,500,000 and P2,000,000. The equipment had a residual value of P150,000. The useful life of the asset is 10 years, while the lease term was for 5 years.

The fair value of the asset is P80,000 at the end of the lease.

Required -

How much is the cost of goods sold recognized on January 1, 2000?

How much is the loss on the lease at the end of the lease term?

Reference no: EM132952017

Questions Cloud

How much should Sam invest on January : On January 1, 2016 Sam wants by December 31, 2020 to have P10,000,000. How much should Sam invest on January 1, 2016 that will earn 10% annual interest
Describe audit process that medical center can expect : What actions should a medical center take to prepare for an audit by the OCR?
Concepts of costs covered in operations management : There are numerous concepts of costs covered in Operations Management. Two such concepts are Marginal Costing and Absorption costing.
Why complete inventory control is significant in company : Jamblock is a Jamaican company, of which you are the Logistics Director. It is committed to making outdoor concrete tiles and various concrete structures for ho
How much is the cost of goods sold recognized on January : The cost and fair value of the equipment are P1,500,000 and P2,000,000. How much is the cost of goods sold recognized on January 1, 2000
What does the utilization effect term equal : The first term in the queue length formula (equation 8.10) is often called the utilization effect. This term is: u square root 2(c+1)/1-u where in the numerator
Find non-profit organization message : How do partnerships help spread a non-profit organization's message?
What would be the profit and rate of return : Assume that market interest rate (r) decreases to 6% from 10% after 5 years. What would be the profit and rate of return of this investor in case
Standard deviation of the process : The customer specifications are that the molded part have a diameter between 2 and 2.1 inches. The standard deviation of the process is 0.005 inches. The averag

Reviews

Write a Review

Accounting Basics Questions & Answers

  What misstatement this control should prevent

Identify three strengths in Jones' internal control concerning the purchases and payment for inventory. What misstatement this control should prevent

  Review the audit report issued by the external auditing

Review the audit report issued by the external auditing firm from Tenet Healthcare Corp website for the years it was accused of fraud

  Compute the effect on the net income if bayfield accepts

A customer has offered to buy 60,000 units for $150 each. Compute the effect on the net income if Bayfield accepts the special order.

  Total current assets decrease and expenses increase total

total current assets decrease and expenses increase. total current assets are not affected. total current assets

  Why is the study of information systems important to you

Why is the study of information systems important to you? What do you hope to learn from thiscourse to make it worthwhile?

  What is the break-even point per month in sales

clydes marina has estimated that fixed costs per month are 302580 and variable cost per dollar of sales is 0.40.

  What is the maximum amount that kendall can spend

Kendall is considering the purchase of a home, what is the maximum amount that Kendall can spend on a new home

  Prepare a single journal entry to record these costs

Cala Manufacturing purchases land for $421,000 as part of its plans to build a new plant. Prepare a single journal entry to record these costs

  Murphy company plans to produce 50000 units in march and

murphy company plans to produce 50000 units in march and 60000 units in april. each unit requires 6 pounds of direct

  Newport manufacturing makes and sells backyard fire pits

newport manufacturing makes and sells backyard fire pits. each fire pit regularly sells for 269. the following cost

  Cody company reports net income of 104400 in 2010 however

cody company reports net income of 104400 in 2010. however ending inventory was understated 18820. what is the correct

  By using the suitable annuity table find out how much will

wiseman video plans to make four annual deposits of 2000 each to a special building fund. the funds assets will be

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