User Account

All Pages

How much will Scott record as depreciation expense

Assignment Help Accounting Basics
Reference no: EM133060482

Question - Scott Limited enters into a lease on 1 July 2020 for the use of machinery. Scott incurred direct costs of $1,200 negotiating the lease agreement.

The first lease payment of $11,000 was made in advance. Three further payments of $11,000 are due each 30 June. If Scott exercises a $16,000 purchase option at the expiration of the lease term on 30 June 2024 it will obtain legal ownership of the asset. At the inception of the lease Scott is reasonably certain of exercising the option. The expected life of the asset is 6 years.

The interest rate implicit in the lease is 8%. The present value of the four lease payments of $11,000 is $39,349. The present value of the purchase option is $11,760.

How much will Scott record as depreciation expense for the year ended 30 June 2021 under IFRS 16 Leases?

A. $8,718.

B. $13,077.

C. $12,777.

D. $8,518.

Reference no: EM133060482

Questions Cloud

How much would the tender cost the bidder : A company has 100 shares outstanding, which are currently trading at $10. 10% of shares are owned by management. The remaining shares are held by public investo
Differentiate short-term and long-term commercial papers : Question - Differentiate short-term and long-term commercial papers and provide an example. Explain in exactly five sentences only
Durbin-watson test : The Durbin-Watson test is used to assess the level of serial correlation of residuals in auto- (2) regressive models.
What is the value of the consideration transferred : A first instalment of $4 million is due on 1 July 2020 and the remainder is due on 1 July 2021. What is the value of the consideration transferred
How much will Scott record as depreciation expense : The present value of the four lease payments of $11,000 is $39,349. How much will Scott record as depreciation expense for the year ended
Characteristics of the merged company : Suppose that assets are priced according to the Fama-French 3-factor model. Consider threeThe risk-free rate is 2% small firms: A, B and C. Assume that their ri
Expected npv for the proposed project : 1- Use the decision-tree procedure to project the expected standard deviation for the proposed project, ignoring any real option.
Important central issues in public administration : Determine the three most important central issues in public administration based on your own experience, understanding, and perspective;
What does this risk-return tradeoff mean : What does this risk-return tradeoff mean to the financial management of a firm? What are the possible impacts on the firm

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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