User Account

All Pages

How much is the present value of lease payments

Assignment Help Financial Accounting
Reference no: EM133088056

Question - Rainier entered into the contract on January 1, 2017 for 5 years. Annual rental payments are $100,000 in arrears (that is, 31 December each year). At the end of the lease term, the machine will be returned back to the lessor. Rainier likewise incurred direct cost of $5,550 as direct cost. The economic life of a machine is 10 years. Use the discount rate of 3%.

a. Provide the journal entry for January 1, 2017.

b. Prepare a table of amortization.

c. How much is the present value of lease payments?

d. How much is the interest expense related to the lease for 2019?

e. What amount is the balance of related liability as of December 31, 2019?

f. What amount is the depreciation annually related to the asset?

Reference no: EM133088056

Questions Cloud

Describing hypothetical research projects : Data analysis and the ethical practices described in a series of hypothetical projects - critiquing both the experimental design
Understanding of quantitative data analysis : Understanding of quantitative data analysis skills and knowledge, including understanding the different types of data, the use of graphs and summary statistics
Impact of social media use on self-esteem : Understanding of the issues of bias associated with sampling, and of the principles which underpin good survey design.
How much is the initial margin required : The current price of a barrel of oil is P108,000. The broker requires an initial margin of 8%. How much is the initial margin required
How much is the present value of lease payments : Annual rental payments are $100,000 in arrears (that is, 31 December each year). How much is the present value of lease payments
Critique and design quantitative research studies : Critique and design quantitative research studies - they now want to analyse the relationships between these measures
What is Miles SECA social security tax liability : Question - Miles earned a salary of $135,300 and his self-employment income is $36,600. What is Miles' SECA social security tax liability
What is Miles SECA Medicare tax liability : Miles earned a salary of $135,300 and his self-employment income is $36,600. What is Miles SECA Medicare tax liability
Record the journal entry to allocate net income : Record the journal entry to allocate the 2021 net income to the three partners (assuming all revenue and expense accounts have been closed to income summary)

Reviews

Write a Review

Financial Accounting Questions & Answers

  Do agree or disagree and why so

Consider a share of stock that pays. In this formula, it appears as though we ignore all dividends from year three on. Do you agree or disagree and why so?

  What payment will affect the expanded accounting equation

Bolo, Inc. paid shareholders dividends during 2020. This payment will affect the expanded accounting equation in what ways? Net income will decrease

  Find the after-tax cash flow from the sale of the equipment

Your company is considering a project that will generate sales revenue of $120 million in Year 1. Find the after-tax cash flow from the sale of the equipment

  Explain the ethical ramifications

Explain the ethical ramifications if you selected the other forms of organization. Note there are three forms of organization you could select from

  Abbott recorded depreciation

Abbott Landscaping purchased a tractor at a cost of $40,000 and sold it three years later for $12,700. Abbott recorded depreciation using the straight-line method, a five-year service life, and a $2,500 residual value

  Do have any reservations about the decision

Should you accept this deal or not? Explain how you use IRR in your decision analysis. Do you have any reservations about this decision? Why or why not?

  Calculate the degree of operating leverage

Calculate the degree of operating leverage AND advise the management about the percentage increase in net profit if they estimate an increase of 10 percent

  What amount of the note payable should largo

What amount of the note payable should Largo include in the current liabilities section of its December 31, year 2 balance sheet?

  Discuss the revenue to be recognised in maju bhd account

Discuss the revenue to be recognised in Maju Bhd account in accordance with the five step model of MFRS15: Revenue from Contract with Customers

  Compute the amount of the stock dividend

Compute the amount of the stock dividend. Show the effects of the stock dividend on the financial statements using a horizontal statements model.

  Find what is the amount of maren bargain element

When the share price was $15 per share, she exercised all of her options. Eighteen months later she sold. What is the amount of Maren's bargain element?

  Current provision for income tax expense

Total $50,000 Grim's enacted income tax rate is 30%. In its year 1 income statement, what amount should Grim report as current provision for income tax expense?

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