Reference no: EM132946011
Questions -
Q1. Abc Company leased office premises to Efg, Inc. for a two-year term beginning March 1, 2021 up to February 28, 2023. Under the terms of the operating lease, rent for the first lease year is P20,000 per month and will increase by 10% in the monthly rent for the following lease year.
In its financial statements for the fiscal year ending June 30, 2022, what amount should Abc Company report as rent revenue?
Q2. On July 1, 2021, Corvus Corporation signed a 5-year non-cancelable lease for a machine with IC Company. The terms of the lease called for Corvus to make annual payments of P150,000 at the beginning of each year starting July 1, 2021. The machine has an estimated useful life of 6 years and a P50,000 guaranteed residual value at the end of the five-year lease term. The machine reverts to the lessor at the end of the five-year lease term. Corvus uses the straight-line method of depreciation for all of its plant assets and adopts the calendar year. The rate implicit in this contract, which is known to Corvus, is 10%.
The present value of an annuity due of 1 at 10% for 5 periods is 4.1699. The present value of an ordinary annuity of 1 at 10% for 5 periods is 3.7908. The present value of 1 for a single payment at 10% for 5 periods is 0.6209. How much is the interest expense for year ended December 31, 2021 and December 31, 2022?
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Calculate the value today of a one-year call option
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What is the amount of interest expense recognized by alton
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How much is the interest expense for year ended December
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What is the present value of a five-year ordinary annuity
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How much is the interest expense for year ended
: The present value of 1 for a single payment at 10% for 5 periods is 0.6209. How much is the interest expense for year ended December 31, 2021
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What nominal annual rate does national bank offer
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What the Spending variance
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How much will be in the account three years from now
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How much is the loan balance at the end of the second year
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