Incur 429000 of costs for 36-month zip contract paying 70

Assignment Help Accounting Basics

Reference no: EM13482540

1. Pay $238,000 to Lessor Co. as 1st annual payment on the signing of a 3-year, noncancelable computer lease to begin 11/1. Each annual payment includes $25,200 for tax and insurance, and Owl will pay maintanance cost for the equipment. Lessor Co. bought the computers for $700,000, used an implicit lease rate of 8%, and expects the life of the computers to be 4 years before they become obsolete. Owl's incremental borrowing rate is 10%. If capitalized, Owl will use the simplest method to expense. Assume that there are no book-tax differences with this lease.

2.Incur $429,000 of costs for 36-month Zip contract, paying 70% now, rest on credit, & progress bill Zip Co. for 90% of cost to date; at 12/31, estimated future costs are $1,771,000.

Reference no: EM13482540

Questions Cloud

Fidelitys income tax rate is 40 at january 1 2013 fidelitys : for the year ended december 31 2013 fidelity engineering reported pretax accounting income of 977000. selected

Kobyashi moru reports its inventory fixed assets : kobyashi moru reports its inventory fixed assets depreciation and cost of goods sold on a current value basis fair

If the firm desires to net 450 per unit in profit over : taurus tools has developed a new kitchenutensil. the firm has conducted significant market research and estimated the

Detmer holdings ag of zurich switzerland has just : detmer holdings ag of zurich switzerland has just introduced a new fashion watch for which the company is trying to

Incur 429000 of costs for 36-month zip contract paying 70 : 1. pay 238000 to lessor co. as 1st annual payment on the signing of a 3-year noncancelable computer lease to begin 111.

On the basis of the cash forecast write a brief report : a company is negotiating with the bank for a 200000 90 day12 loan effective july 1 of the current year. if the

On august 31 kravsnik company receives its bank statement : on august 31 kravsnik company receives its bank statement. the company deposits its receipts in the bank and makes all

Rand medical manufactures lithotripters lithotripsy uses : rand medical manufactures lithotripters. lithotripsy uses shock waves instead of surgery to eliminate kidney stones.

How can sales clerks employed at rare earth clothing use : rare earth clothing is a retail store specializing in womensclothing. the store has established a liberal return policy

User Account

All Pages