Reference no: EM133063456
Question - On January 1, 2021, A, Inc. purchased equipment for P4,000,000. The equipment shall be leased out under operating lease. The estimated useful life is 10 years and the estimated residual value is P480,000.
On July 1, 2021, the equipment was leased to B Co. under a 5-year operating lease. Annual rent is P800,000. The first annual rent was made on that date. Initial direct cost incurred on negotiating the lease amounted to P80,000. Insurance cost incurrent by A, Inc. in 2021, not reimbursable from lessee, amounted to P4,000.
1. How much is the rental income net of lease related expense in 2021?
A. 36,000 C. 28,000
B. 32,000 D. 24,000
2. How much is the carrying amount of the leased asset at December 31, 2021?
A. 3,720,000 C. 3,648,000
B. 3,712,000 D. 3,684,000
|
What is the minimum amount he can accept for the sale
: Nelson can secure an investment that earns 1.85% compounded quarterly, what is the minimum amount he can accept for the sale of the hotels
|
|
What the basis of the shares purchased on June
: Sale on October 5, of the shares purchased on June 22 - 8,000. What the basis of the shares purchased on June 22, 2019
|
|
What is the amount of the remaining payments
: The first payment to be made 6 months after the loan is finalized. The first 6 payments are worth Php 6000.00 each, What is the amount of the remaining payments
|
|
How much rent revenue should Aguila recognize
: Upon execution of the lease, A Corporation received P240,000 as a bonus for the lease. How much rent revenue should Aguila recognize in profit or loss
|
|
How much is the rental income net of lease related expense
: On January 1, 2021, A, Inc. purchased equipment for P4,000,000. How much is the rental income net of lease related expense in 2021
|
|
Find out the Financial Leverage and EPS of the firm
: Following information is available in respect of PQR Ltd.: Equity Share Capital (F.V. R10 each) R32,00,000. Find out the Financial Leverage and EPS of the firm
|
|
Prepare Tejas journal entries
: The appropriate rate of interest is 8%, and the truck has a useful life of 20 years with no salvage value. Prepare Tejas's 2017 journal entries
|
|
What is the new value of the portfolio
: You have decided to put $200,000 into three stocks: 64% of the money in Gold-Finger (currently $23/share), What is the new value of the portfolio
|
|
How much can Raymund Lipstix Co expect
: The statement of affairs of PH Care, shows a 100% recovery for outside creditors and a 20% recovery for inside creditors. How much can Raymund Lipstix Co expect
|