On january 1 2011 dean corporation signed a ten-year

Reference no: EM13600443

On January 1, 2011, Dean Corporation signed a ten-year noncancelable lease for certain machinery. The terms of the lease called for Dean to make annual payments of $100,000 at the end of each year for ten years with title to pass to Dean at the end of this period. The machinery has an estimated useful life of 15 years and no salvage value. Dean uses the straight-line method of depreciation for all of its fixed assets. Dean accordingly accounted for this lease transaction as a capital lease. The lease payments were determined to have a present value of $671,008 at an effective interest rate of 8%. With respect to this capitalized lease, Dean should record for 2011.

Reference no: EM13600443

Questions Cloud

On april 1 the snake river racing club srrc purchased ten : on april 1 the snake river racing club srrc purchased ten white-water rafts with a cash price of 3000 each. srrc

Determine brooks streets ending inventory cost of goods : the following schedule summarizes the inventory purchases and sales of brooks street enterprises during january 2009

The rolek company was involved in the following treasury : the rolek company was involved in the following treasury stock transactions during 2010a. purchased 40000 shares of its

Lupinski distributors has 1000000 shares of common stock : lupinski distributors has 1000000 shares of common stock outstanding. on january 11 of the current year lupinski

On january 1 2011 dean corporation signed a ten-year : on january 1 2011 dean corporation signed a ten-year noncancelable lease for certain machinery. the terms of the lease

Carrie offered to sell a set of legal encyclopedias to : carrie offered to sell a set of legal encyclopedias to antonio for 300.00. antonio said that he would think about her

Context corporation reports the following components of : context corporation reports the following components of stockholders equity on december 31 2011. common stock-10 par

On february 7 mccade repair service extended an offer of : on february 7 mccade repair service extended an offer of 63000 for land that had been priced for sale at 72000. on

Bennett company uses the fifo method in its process costing : bennett company uses the fifo method in its process costing system. during april the equivalent units of production

User Account

All Pages