User Account

All Pages

How much is the lease-related liability

Assignment Help Accounting Basics
Reference no: EM132838542

Problem - On December 31, 2018, Tracy Co. signed a 4-year, noncancelable lease for a right of use of machine requiring 150,000 annual payments beginning December 31, 2018. The annual payments include payment for insurance and property taxes amounting to 20,000. On the same date, Tracy Co. paid 40,000 incremental costs that are directly attributable to negotiating and arranging a lease. The machine has a useful life of 8 years, with no salvage value. The rate implicit on the lease is 10%.

Tracy Co. guarantees a residual value of 50,000 at the end of the lease term. The fair value of the machine at the inception of the lease amounted to 518,561.

Required -

1. How much is the initial cost of the right of use asset on December 31, 2018?

2. How much is the interest expense in 2019?

3. How much is the lease-related liability to be shown as current in the statement of financial position on December 31, 2018?

4. How much is the lease-related liability to be shown as noncurrent in the statement of financial position on December 31, 2018?

Reference no: EM132838542

Questions Cloud

How do we regulate interest groups and lobbying activity : How do we regulate interest groups and lobbying activity? What are the goals of these regulations?
How much money can you withdraw for next thirty years : How much money can you withdraw for the next 30 years in equal annual end-of-the-year cash flows if you invest the money at a rate of 5.43 percent per year
Examine best practices and trends for technology integration : Create a 7- to 10-minute presentation that examines best practices and trends for technology integration, using your choice of presentation tool.
What are the legal and ethical issues : Create a new tab or section in your digital portfolio titled "Legal and Ethical Issues." Include each element of this assignment in this tab.
How much is the lease-related liability : How much is the lease-related liability to be shown as noncurrent in the statement of financial position on December 31, 2018
How an airline such as air canada can use cvp to change sale : How an airline such as Air Canada can use CVP to change sales prices or variable costs? how managers can use CVP to respond to changes in economic
What traits does the leader possess : Name a figure in the business environment whom you would identify as a successful leader.
Explain the different organizational requirements : Explain the different organizational requirements necessary for an effective "Cost Leadership" business-level strategy versus an effective
How will you contribute to the ongoing conversation : What you are trying to do now is to imagine what your essay will look like. What information will appear in your essay? What ideas will you introduce

Reviews

Write a Review

Accounting Basics Questions & Answers

  How does each model affect land securities balance sheet

Land Securities Individual Case Questions - How does each model affect Land Securities' balance sheet

  What methods are used to allocate the cost

John recently came into a sum of money from an inheritance and is contemplating purchasing a small manufacturing facility in his home town. Not knowing much about running a business, he decided to have lunch with some of the other businesspeople i..

  Determine the lessor lease receivable

Guaranteed residual value by the lessee: $60,000. Estimated residual value at the end of the lease term: $40,000. Determine the lessor's Lease Receivable

  Break-even point in sales units

Determine the (a) break-even point in sales units and (b) break-even point if the selling price were increased to $76 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $76 per unit units

  How will the second distribution be allocated

Current E & P for year 5 is $30,000. How will the second distribution be allocated between current E & P and accumulated E & P

  What about a project that has a negative npv

When a project has a negative net present value (NPV), What about a project that has a negative NPV but would result in decreased competition?

  A company has limited machine hours available for

a company has limited machine hours available for production and must decide which of its four products to produce and

  Discuss the social security benefits are taxable

no tax-exempt interest, and $14,560 of Social Security benefits. As a result, the Social Security benefits are taxable

  What was the company plantwide predetermined overhead rate

Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. What was the Company's plantwide predetermined overhead rate

  Identify a brand about which you are passionate

Write a 750- to 1,000-word paper in which you identify your favorite brand and explain why it is your favorite. In the paper you should do the following:

  Assume jeffrey factors the 1200000 of accounts receivable

on may 1 jeffrey inc. factored 1200000 of accounts receivable with bilked finance on a without recourse basis. under

  What amount of bad debt expense will mingenback record

What amount of bad debt expense will Mingenback record if it has an Allowance for Doubtful Accounts credit balance of $3,600

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